<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="536" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-820x536.jpg" alt="" class="wp-image-415202" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-820x536.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-300x196.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-768x502.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-1536x1004.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/02/RLMIHL2X2BNFJHXI3AKPGZ4KQA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Kenya Central Bank Governor Patrick Njoroge in Nairobi, Kenya July 25, 2019. REUTERS/Stringer/File Photo</figcaption></figure>



NAIROBI, May 31 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s central bank governor nominee Kamau Thugge plans to push for local dollar bond issuance with the finance ministry once in office, he said, citing residents&#8217; domestic holdings of foreign currency.



President William Ruto named Thugge, an economic adviser and former senior Treasury official, as the next governor of the central bank two weeks ago.



Once cleared by parliament, which is controlled by Ruto&#8217;s coalition, Thugge will replace Patrick Njoroge, who retires next month after two terms that have run since mid-2015.



On Tuesday Thugge told a parliamentary vetting panel that it was worth pursuing the issue of a local dollar-denominated bond, given foreign exchange deposits of about 1 trillion shillings ($7.33 billion) in the banking system.



&#8220;One of the things that I would like to explore with the national treasury is the possibility of actually issuing a dollar-denominated bond, the way we issue an infrastructure bond, and we structure it, and sell it locally,&#8221; he said.



&#8220;If we can get those Kenyans who are holding dollars in their deposits to buy into it &#8230; we will have a possibility of actually increasing liquidity of dollars in the system but also building up foreign exchange in the central bank.&#8221;



The central bank&#8217;s foreign exchange reserves of $6.49 billion cover 3.62 months of imports, which the bank says is sufficient to cushion any short-term shocks in the foreign exchange market.



Challenges awaiting Thugge in office include a rapid weakening of the Kenyan shilling&nbsp;KES=&nbsp;and a heavy government debt load that has crimped its finances.



($1=136.5000 Kenyan shillings)



(Reporting by George Obulutsa; Editing by Clarence Fernandez)

FILE PHOTO: Kenya Central Bank Governor Patrick Njoroge addresses a news conference at the Central Bank of Kenya headquarters in Nairobi

Kenya central bank nominee to push for local dollar bond issuance

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg" alt="" class="wp-image-419915" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/GettyImages-1240090144-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The World Bank Group headquarters in Washington, D.C., U.S., on Tuesday, April 19, 2022. The International Monetary Fund (IMF) slashed its world growth forecast by the most since the early months of the Covid-19 pandemic, and projected even faster inflation, after Russia invaded Ukraine and China renewed virus lockdowns. Photographer: Al Drago/Bloomberg via Getty Images</figcaption></figure>



NAIROBI, May 30 (Reuters)&nbsp;&#8211;&nbsp;The World Bank said on Tuesday it approved a $1 billion loan to Kenya to support its budget as East Africa&#8217;s economic powerhouse confronts high debts and a weakening currency.



The lending will be done through an instrument called a Development Policy Operations (DPO) loan, which commits Kenya to instituting reforms aimed at creating fiscal space, improving agricultural competitiveness and improving governance.



&#8220;The government&#8217;s reforms, supported by the DPO, will help to achieve fiscal consolidation, which is essential for reducing the debt burden and related risks, in an equitable and sustainable manner,&#8221; Aghassi Mkrtchyan, Senior Economist for the World Bank in Kenya, said in a statement.



President William Ruto, who was elected last year, has pledged to restore fiscal discipline after public debt surged under his predecessor.



But his proposal to raise taxes on a wide swathe of economic activities as part of the finance bill his government will put forward in parliament next month has faced pushback from civil servants and political opponents.



Kenya qualified for financing under the DPO instrument in 2019 and has since received four such loans, the last in March.



Reforms that Kenya will adopt under the latest agreement include the elimination of administrative price-setting for publicly procured cereals and the streamlining of the state’s exit from commercial investments, the World Bank said.



Kenya’s finances have been under strain from rising debt repayments and the effects of the Horn of Africa&#8217;s worst drought in four decades.



Earlier this month, global ratings agency Moody&#8217;s cut Kenya&#8217;s senior unsecured debt rating as well as long-term foreign-currency and local-currency issuer ratings, citing an increase in government liquidity risks.



The economy is projected to expand by 5.8% in 2023, the country&#8217;s central bank said in March, up from 4.8% in 2022.



(Reporting by Ayenat Mersie; Editing by Aaron Ross and Giles Elgood)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank approves $1 billion loan to Kenya

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="537" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-820x537.jpg" alt="" class="wp-image-425141" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-820x537.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-300x197.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-137x90.jpg 137w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-768x503.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-1536x1006.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/ED2ISXUD55O23CCWO4CVDP66MU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Uganda&#8217;s President Yoweri Museveni speaks during a Reuters interview at his farm in Kisozi settlement of Gomba district, in the Central Region of Uganda, January 16, 2022. REUTERS/Abubaker Lubowa/File Photo</figcaption></figure>



May 29 (Reuters) &#8211; Uganda&#8217;s tough new anti-LGBTQ law, which stipulates the death penalty for &#8220;serial offenders&#8221;, presents a conundrum for multi-nationals wanting to grow in Africa while promoting diversity and inclusion.



A coalition of companies that includes Google&nbsp;GOOGL.O&nbsp;and Microsoft&nbsp;MSFT.O&nbsp;said it was &#8220;deeply disappointed&#8221; by the bill signed into law on Monday.



Here are some global firms that have substantial operations in Uganda and their strategies for LGBTQ inclusion.



<h2 class="wp-block-heading" id="h-totalenergies">TOTALENERGIES</h2>



TotalEnergies (TTEF.PA) is the leading retailer in Uganda, according to the company&#8217;s website. It is also active in oil and gas exploration and production in the country.



The company has more than 300 employees in Uganda and around 200 service stations.



On its website, TotalEnergies says it is committed to &#8220;promoting equal treatment of employees and an inclusive culture.&#8221;



<h2 class="wp-block-heading">STANDARD CHARTERED</h2>



Standard Chartered&nbsp;STAN.L&nbsp;is the longest-established commercial bank in Uganda, according to its website. It has more than 350 staff in the country and three branches.



On its website, Standard Chartered says &#8220;we go out of our way to ensure that our approach to diversity is mirrored by our suppliers and the communities we operate in.&#8221;



<h2 class="wp-block-heading">GOOGLE</h2>



Google, owned by Alphabet&nbsp;GOOGL.O, launched its first wi-fi network in Uganda in 2015 in the capital, Kampala.



On its website, the company says &#8220;supporting LGBTQ+ communities has been a priority from the earliest days of Google.&#8221;



<h2 class="wp-block-heading">EY</h2>



EY offers services in Uganda including tax and advisory.



On its website, EY says &#8220;LGBT+ inclusion allows companies to attract and retain the best talent and drive high performance teaming through diversity of thought.&#8221;



<h2 class="wp-block-heading">PWC</h2>



PWC offers a range of services in Uganda including tax and advisory. On its website, the company says it supports &#8220;a workplace where lesbian, gay, bisexual, transgender and other (LGBT+) solvers can bring their best selves to work and feel the full support of their PwC family.&#8221;



<h2 class="wp-block-heading">Unilever</h2>



Unilever&nbsp;ULVR.L&nbsp;sells vaseline and other body care products in Uganda. The company looks to &#8220;promote and protect a fully inclusive workplace&#8221; through its &#8216;proUd&#8217; employee network.



The company&#8217;s website quotes an unnamed African employee as saying the network had provided &#8220;comfort&#8221; while they felt like an &#8220;outcast&#8221; in their home country.



(Reporting by Matt Scuffham; Editing by Giles Elgood)

FILE PHOTO: Uganda’s President Yoweri Museveni wants trade barriers to come down, in Kisozi

Global firms in Uganda face LGBTQ conundrum

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg" alt="" class="wp-image-417697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/GettyImages-1237649604-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The seal for the International Monetary Fund is seen near the World Bank headquarters (R) in Washington, DC on January 10, 2022. (Photo by Stefani Reynolds / AFP) (Photo by STEFANI REYNOLDS/AFP via Getty Images)</figcaption></figure>



NAIROBI, May 23 (Reuters)&nbsp;&#8211;&nbsp;International Monetary Fund staff and Kenya have reached an agreement that could unlock more than $1 billion of new financing, which could help relieve pressure on government finances in East Africa&#8217;s largest economy.



Kenya&#8217;s finances have been under strain from rising debt repayments and the effects of the worst drought in four decades, although the IMF&#8217;s managing director said earlier this month&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3720R9&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">she was not expecting the country to default</a>.



The IMF said in a statement on Tuesday that the agreements included the latest review of Extended Fund Facility and Extended Credit Facility arrangements approved in April 2021 and a new arrangement under the Resilience and Sustainability Facility.



Fund staff agreed with Kenyan officials to extend the Extended Fund Facility and Extended Credit Facility arrangements by another 10 months to April 2025 to give more time to meet all the requirements, and to increase the amount of money available to Kenya under those facilities by about $544 million.



Kenya will also have access to about $544 million under the Resilience and Sustainability Facility, designed to bolster climate change resilience and adaptation.



The IMF said cumulative funding committed to Kenya under the three facilities amounted to about $3.5 billion and that the staff-level agreement was expected to be considered by its executive board in July.



(Reporting by George Obulutsa; Editing by Alexander Winning, William Maclean)

US-ECONOMY-FINANCE-IMF-WORLD BANK

IMF staff, Kenya reach agreement on over $1 bln of new financing

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-820x547.jpeg" alt="" class="wp-image-424927" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/storm-freddy-malawi-vaccine.jpeg 900w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Locals carry goods over a flooded area in Muloza on the border with Mozambique after the tropical Cyclone Freddy, around 100 km outside Blantyre, Malawi, March 18, 2023. REUTERS/Esa Alexander/File Photo Reuters/REUTERS</figcaption></figure>



MAPUTO, May 19 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has moved $150 million of the funds it has earmarked for Mozambique projects to help fund the southern African nation&#8217;s efforts to recover from the aftermath of Cyclone Freddy.



One of the deadliest storms to hit the continent in the last two decades, Freddy ripped through Malawi, Mozambique and Madagascar, first in late February before circling back in March. Over 1,000 people were&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N36F336&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reported</a>&nbsp;dead in the region.



The World Bank said the money would aid the Mozambican government in restoring transport infrastructure and provide services including on water supply, sanitation, health and education.



The funds are drawn from the World Bank&#8217;s existing projects in Mozambique, and are separate to the $300 million grant it&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N2YV305&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">approved in July</a>, the multilateral lender said. It consists of $100 million in grant money and $50 million as credit extended by the bank.



&#8220;Our priority is to support the Government to respond to this emergency quickly and ensure that the people affected by yet another cyclone can recover as soon as possible,&#8221; said Xavier Chavana, the lender&#8217;s disaster risk management specialist in Mozambique.



(Reporting by Manuel Mucari; Writing by Bhargav Acharya; Editing by Hugh Lawson)

storm-freddy-malawi-vaccine

World Bank extends $150 mln to Mozambique to aid Cyclone Freddy recovery

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg" alt="" class="wp-image-422955" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/GettyImages-924883576-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Uganda shillings. Uganda. (Photo by: Godong/Universal Images Group via Getty Images)</figcaption></figure>



KAMPALA, May 19 (Reuters) &#8211; Uganda&#8217;s parliament has approved the government&#8217;s plan to raise spending by 10% to 52.73 trillion shillings ($14 billion) in the 2023/24 fiscal year, the Finance Ministry said.



Ugandan law requires lawmakers to approve the government&#8217;s spending plans for a specific fiscal year before they are officially laid out in a budget speech. The fiscal year runs July-June.



The finance minister is set to present the 2023/24 budget to parliament early next month.



On Thursday, parliament approved proposed overall spending for that fiscal year, the Finance Ministry said on Twitter on Thursday.



The government set spending for the current fiscal year at 48.1 trillion shillings.



The Finance Ministry did not say how the funds would be allocated, but in recent years the energy, transport, and works and health ministries have taken the lion&#8217;s share of the resources.



Opposition lawmakers have accused the government of heavily relying on borrowing to pay for spending.



&#8220;Borrowing has significantly increased over the years, thence gradually increasing the cost of credit. This has undermined the private sector whereby the acquisition of credit has become expensive,&#8221; Mathias Mpuuga, official leader of the opposition in parliament, said on Twitter as part of their response to the proposed spending.



The government defended its borrowing, saying it was necessary for infrastructure and other development projects.



This year, the finance ministry said it will not do any external borrowing in 2023/24 to ease debt-servicing pressures. ($1 = 3,735.0000 Ugandan shillings) (Reporting by Elias Biryabarema; Editing by George Obulutsa and Gerry Doyle)

GettyImages-924883576-1

Uganda parliament approves proposed 10% rise in 2023/24 budget

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-820x461.jpg" alt="" class="wp-image-424865" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-820x461.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-768x432.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972-1536x864.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/103084881-GettyImages-491956972.jpg 1600w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man holds Zambian 50 kwacha banknotes in Lusaka on Oct. 8, 2015. Waldo Swiegers | Bloomberg | Getty Images</figcaption></figure>



LUSAKA, May 17 (Reuters) &#8211; Zambia&#8217;s central bank on Wednesday raised its key interest rate by 25 basis points to 9.50% as inflation in the copper-rich nation remained high.



The Bank of Zambia said inflation was expected to remain above the 6%-8% target band over the forecast horizon, which runs until the last quarter of next year.



Annual inflation&nbsp;<a href="https://www.reuters.com/quote/ZMCPIY=ECI" target="_blank" rel="noreferrer noopener">(ZMCPIY=ECI)</a>&nbsp;edged higher to 10.2% in April from 9.9% in March.



The bank also raised its main rate by 25 basis points at its previous rate-setting meeting in February, after keeping it unchanged at 9.0% since November 2021.



The southern African nation was the first country in Africa to default on its sovereign debt during the COVID-19 era and has struggled to agree a relief deal with its external creditors. It secured a $3 billion IMF funding last August.



&#8220;Further delays in external debt restructuring negotiations, tighter global financial conditions&#8230; the impact of the prolonged Russia-Ukraine war on food and energy prices remain key upside risks to the inflation outlook,&#8221; the central bank said.



Reporting by Chris Mfula; Writing by Bhargav Acharya; Editing by Olivia Kumwenda-Mtambo

103084881-GettyImages-491956972

Zambia raises key interest rate to 9.5% to tame inflation

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60.jpg" alt="" class="wp-image-423083" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/download-60-768x512.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: Zambia&#8217;s Finance Minister Situmbeko Musokotwane attends the Annual Meetings of the International Monetary Fund and World Bank in Washington, U.S., October 15, 2022. REUTERS/James Lawler Duggan</figcaption></figure>



LUSAKA, May 10 (Reuters)&nbsp;&#8211;&nbsp;Zambian President Hakainde Hichilema met French President Emmanuel Macron in Paris on Wednesday and asked Macron to use his country&#8217;s influence to speed up Zambia&#8217;s delayed debt restructuring talks.



Hichilema&#8217;s office said in a statement that Macron wanted Zambia&#8217;s restructuring conclusively dealt with before the June 22-23 Summit for a New Global Financial Pact that France will host and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N36G23W&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">aims to boost crisis financing for vulnerable countries</a>&nbsp;in the Global South.



There was no immediate statement from Macron&#8217;s office on the meeting with Hichilema.



Zambia defaulted on its sovereign debt in 2020 and has struggled to agree a relief deal with its external creditors.



Its Finance Minister Situmbeko Musokotwane told Reuters in an interview last month that Zambia was being&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3685JK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">unfairly &#8220;punished&#8221;</a>&nbsp;as restructuring talks dragged on.



Many Western officials have blamed delays in agreeing the debt relief on Zambia&#8217;s largest bilateral creditor, China, something Beijing denies.



Hichilema&#8217;s office said the talks with Macron were fruitful and Zambia was happy &#8220;with President Macron&#8217;s commitment that Zambia&#8217;s debt restructuring programme should conclusively be dealt with before the June summit for a new global financial pact&#8221;.



&#8220;On our part, we emphasised the importance of closing debt talks and asked France to use its role to leverage the Paris Club of Creditors Committee and the G20 to ensure the speedy resolution of the debt restructuring,&#8221; the Zambian statement added, urging France and China to work together on the restructuring.



France and China co-chair the committee of Zambia&#8217;s official creditors.



Zambia sent&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N36R52G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">a debt restructuring proposal to its official creditors last month</a>, and IMF Managing Director Kristalina Georgieva has said creditors were set to meet this week to consider it.



(Reporting by Chris Mfula; Editing by Alexander Winning and Bernadette Baum)

download-60

Zambia asks France to help speed up debt restructuring talks

Focus On: Rwanda’s push for more Intellectual Property Rights filling

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="800" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57.jpg" alt="" class="wp-image-422380" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/download-57-768x512.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">FILE PHOTO: International Monetary Fund (IMF) Managing Director Kristalina Georgieva attends a news conference following a meeting at the Federal Chancellery in Berlin, Germany November 29, 2022. REUTERS/Michele Tantussi/File Photo</figcaption></figure>



NAIROBI, May 5 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund expects to disburse the next tranche of its $1.3 billion financing program with Zambia &#8220;soon&#8221;, the managing director of the fund said.



The southern African nation, which was the major sovereign casualty of the COVID-19 pandemic and has been in default since 2020, is seeking to overhaul its debt in a slow process and it secured the IMF funding last August.



&#8220;What we are waiting is creditors of Zambia to agree on a path forward&#8230; We expect to be able to disburse for Zambia very soon,&#8221; Kristalina Georgieva told reporters in the Kenyan capital.



Zambia sent a debt restructuring proposal to its official creditors last month and Georgieva said they are set to meet next week to consider the proposal.



Ghana and Ethiopia have also sought to restructure their debts and Georgieva said the processes have been delayed by a &#8220;cacophony&#8221; caused by the diversification of creditors in recent years.



China is the largest bilateral creditor for many African nations including Zambia.



&#8220;The Chinese premier and former premier confirmed that Chinese were committed to debt resolution for Zambia when I met them,&#8221; Georgieva said.



Some 19 out of 35 sub-Saharan African nations are at or close to the risk of debt distress, Georgieva said, citing the impact of the pandemic, Russia&#8217;s war in Ukraine, high interest rates and weaker currencies.



But she ruled out the risk of Kenya slipping into default, despite acute pressure on its finances by rising debt repayment obligations.



&#8220;Kenya is definitely not among them,&#8221; she said, citing a sustainable debt load and solid hard currency reserves.



(Reporting by Duncan Miriri, Editing by William Maclean)

download-57

IMF head sees disbursement to Zambia ‘soon’, Kenya unlikely to default

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-820x547.jpg" alt="" class="wp-image-424623" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/AF4VP7JQTJLJFIPLGBKDH4ACIA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">German Chancellor Olaf Scholz speaks during his first questioning session with lawmakers at the lower house of parliament Bundestag in Berlin, Germany, January 12, 2022. REUTERS/Hannibal Hanschke</figcaption></figure>



BERLIN, May 4 (Reuters)&nbsp;&#8211;&nbsp;Germany supports the&nbsp;African Union&#8217;s bid to get a seat at the G20 group of large economies, Chancellor Olaf Scholz said on Thursday during his second trip to&nbsp;Africa, as the West seeks to woo the continent away from growing rivals like China.



Scholz was speaking after meeting&nbsp;African Union Commission Chairperson Moussa Faki Mahamat in Addis Ababa on the first leg of a three day trip to Ethiopia and Kenya.



&#8220;Africa&nbsp;must play a bigger role in international relations, a role that does justice to the continent and its growing population,&#8221; he said at a joint news conference, noting he was &#8220;convinced&#8221; the&nbsp;African Union would get a seat at the G20 soon.



South&nbsp;African President Cyril Ramaphosa was the first representative of a G20 member state to call for the inclusion of the 55-country bloc, last year. South&nbsp;Africa&nbsp;is currently the only member of the G20, which consists of 19 countries and the European Union, from the&nbsp;African continent.



Ramaphosa&#8217;s proposal swiftly received support from U.S. President&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3351KP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Joe Biden</a>&nbsp;and French President Emmanuel Macron as the West vies to position itself as a partner to&nbsp;African countries amid growing competition with authoritarian countries like Russia and China.



The latter has sought to expand its influence there by funding infrastructure projects.



A G20 seat would give one of the fastest-growing regions of the world a bigger voice on key issues such as&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3717IT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">climate change</a>.



&#8220;We also want to contribute to peace and security,&#8221; Scholz said, noting the two leaders&nbsp;had discussed the crisis in Sudan.



Scholz has already made two trips to Sub-Saharan&nbsp;Africa&nbsp;since taking office in late 2021 &#8211; whereas his predecessor Angela Merkel made only one throughout her entire first term.



This, he said, reflected his view that the West needed to improve its ties with the Global South as the world becomes more multipolar.



However, the&nbsp;West has found itself struggling to get some countries&nbsp;there&nbsp;on board with its stance on Russia in the wake of its attack on Ukraine, in particular sanctions. This in turn has undermined attempts to hit the Russian economy.



&#8220;African states are divided,&#8221; said Faki. &#8220;A certain number of U.N. resolutions have been approved by some others have abstained for their own reasons, whether historic or current.&#8221;



The AU leader said the bloc hoped for a political solution&nbsp;for Ukraine.



(Reporting by Sarah Marsh and Andreas Rinke, Editing by Alexandra Hudson)

German Chancellor Scholz attends Bundestag session in Berlin

Scholz backs African Union bid for G20 seat on second trip to continent

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="728" height="483" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/KHIM7FJITVMWVKYDMAFR7RXR4U.jpg" alt="" class="wp-image-424588" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/KHIM7FJITVMWVKYDMAFR7RXR4U.jpg 728w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/KHIM7FJITVMWVKYDMAFR7RXR4U-300x199.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/KHIM7FJITVMWVKYDMAFR7RXR4U-136x90.jpg 136w" sizes="(max-width: 728px) 100vw, 728px" /><figcaption class="wp-element-caption">Ethiopia&#8217;s Prime Minister Abiy Ahmed speaks during a question and answer session with lawmakers in Addis Ababa, Ethiopia, November 30, 2020. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, May 3 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia will issue up to five banking licenses to foreign investors in the next five years, part of plans to open up the financial services sector to foreign competition, a senior central bank official said on Wednesday.



Prime Minister Abiy Ahmed&#8217;s government has promised to open up sectors previously controlled by state firms to help drive foreign investment inflows and economic growth.



&#8220;We will give three to five licenses within five years,&#8221; vice governor of the central bank Solomon Desta told reporters.



Ethiopia&#8217;s banking industry is dominated by state-owned Commercial Bank of Ethiopia, and the sector has 29 players, all of them locally owned.



Desta said foreign investors would have different options to enter the industry, including forming joint ventures with domestic players, or establishing local subsidiaries.



Foreign investors have long eyed sectors including banking, telecoms, transportation and aviation in Ethiopia, a country of more than 100 million people and one of the biggest economies in Sub-Saharan&nbsp;Africa.



Two years ago, Ethiopia&#8217;s government granted a telecoms licence to a private operator to break the monopoly of state-owned Ethio Telecom in that sector.



The operator, a consortium led by Kenya&#8217;s Safaricom&nbsp;SCOM.NR, Vodafone&nbsp;VOD.L, and Japan&#8217;s Sumitomo&nbsp;8053.T, paid $850 million for the licence.



Ethiopia has also launched a tender process to sell a 45% stake in Ethio Telecom and issue a third telecoms licence.



(Editing by Elias Biryabarema and Alexander Winning; Editing by Jan Harvey)

FILE PHOTO: Ethiopia’s Prime Minister Abiy Ahmed speaks during a question and answer session with lawmakers in Addis Ababa

Ethiopia to offer up to five banking licenses to foreign investors

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-820x547.jpg" alt="" class="wp-image-424564" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/GettyImages-1267129161-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">KAJEVUBA, BUGESERA, RWANDA &#8211; SEPTEMBER 20: Farmers sheltered under banana leaves during a heavy rain on September 20, 2018 in Kajevuba, Bugesera, Rwanda. (Photo by Camille Delbos/Art In All of Us/Corbis via Getty Images)</figcaption></figure>



KIGALI, May 3 (Reuters)&nbsp;&#8211;&nbsp;Heavy rain that triggered flooding and landslides in western and northern Rwanda has killed at least 109 people, the state-run broadcaster said on Wednesday, as authorities searched for survivors trapped in their homes.



Muddy water flowed swiftly down an inundated road and destroyed houses in a video clip posted by the Rwanda Broadcasting Agency.



&#8220;Our main priority now is to reach every house that has been damaged to ensure we can rescue any person who may be trapped,&#8221; François Habitegeko, governor of Rwanda&#8217;s Western Province, told Reuters.



The death toll stood at 95 in the province, he said. The state broadcaster&#8217;s toll of 109 included deaths from a second region, the Northern Province.



Some people had been rescued and taken to hospital,&nbsp;Habitegeko&nbsp;said, but did not say how many.



The hardest-hit districts in the Western Province were Rutsiro, with 26 dead, Nyabihu with 19, and 18 each in Rubavu and Ngororero, he said.



Habitegeko said the rain started at about 6 p.m. (1600 GMT) on Tuesday and that the River Sebeya had burst its banks.



&#8220;The soil was already soaked from the previous days of rain, which caused landslides that closed roads,&#8221; he said.



The Rwanda Meteorology Agency has forecast rainfall above the average in May for the East African nation.



In neighbouring Uganda near the border with Rwanda, six people died overnight into Wednesday in an area in the southwestern Kisoro district, after heavy rains pounded the mountainous region, according to the Uganda Red Cross.



Five of the dead are from one family, and emergency workers have begun excavations to retrieve the bodies, the Red Cross said in a statement



Uganda has also been experiencing heavy and sustained rains since late March and in recent days landslides have been reported in other elevated areas, like Kasese near the Rwenzori mountains, where deluges and floods destroyed homes and displaced hundreds.



(Reporting by Philbert Girinema; Additional reporting by George Obulutsa in Nairobi, Elias Biryabarema in KampalaEditing by Alexander Winning, Nellie Peyton, Robert Birsel and Angus MacSwan)

GettyImages-1267129161-1

Heavy rain, floods kill at least 109 in Rwanda, six in Uganda

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-820x547.jpg" alt="" class="wp-image-424549" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/7UDDBPB7GNKIPD4FLGDBQINYG4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: German Chancellor Olaf Scholz looks on during a visit to a Red Cross emergency point in Koblenz, Germany May 1, 2023. REUTERS/Thilo Schmuelgen</figcaption></figure>



BERLIN, May 2 (Reuters)&nbsp;&#8211;&nbsp;German Chancellor Olaf Scholz aims to discuss the conflict in Sudan, signal his support for the peace process in Ethiopia and explore cooperation on green hydrogen with Kenya during his trip to East&nbsp;Africa&nbsp;this week, officials said on Tuesday.



Scholz&#8217;s three-day stay in Ethiopia and Kenya, which will include a business delegation, is his second official visit to&nbsp;Africa&nbsp;as chancellor as the West increasingly vies for influence and trade worldwide with other powers, notably China.



In Ethiopia, he will meet on Thursday with the prime minister and the interim leader of the Tigray region to discuss progress in ensuring peace after a two-year war that killed tens of thousands of people, the German government officials told a briefing.



He will also meet with the&nbsp;African Union Commission Chairperson Moussa Faki Mahamat to discuss the latest developments in Sudan, economic cooperation and global challenges such as climate change.



On Friday, he will meet the president of Kenya, East&nbsp;Africa&#8217;s biggest economy, to discuss trade and other issues.



Asked if Scholz would address the Ukraine war, the officials said he always sought to explain the West&#8217;s point of view and address the global implications such as rising food insecurity and energy prices.



On Saturday, Scholz will visit&nbsp;Africa&#8217;s biggest geothermal plant, at Lake Naivasha, in the geologically active Great Rift Valley, which is key to Kenya&#8217;s plans for producing green hydrogen.



The German officials played down the possibility of any imminent deal on cooperation on green hydrogen.



Instead, the German development agency GIZ would hold a forum on the topic during the visit within the framework of Germany&#8217;s long-standing energy partnership which derives 90% of its power from renewable energy sources.



&#8220;Kenya is a leader on the&nbsp;African continent on climate protection and renewables and has enormous convening power, so the chancellor&#8217;s visit also aims to strengthen that,&#8221; one official said.



Kenya was interested in producing green hydrogen to use in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N32429L&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">fertilizer production</a>&nbsp;but could potentially export to Germany in future if supply was extensive, the officials said.



(Reporting by Sarah Marsh, editing by Ed Osmond)

FILE PHOTO: German Chancellor Scholz visits Red Cross emergency point in Koblenz

Scholz’s East Africa trip to address regional conflict, green energy

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="542" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-820x542.jpg" alt="" class="wp-image-424545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-820x542.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-768x508.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-1536x1015.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/IB2GU5R2YFNCRPCW6QX5B6WSCI-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A satellite view shows buses as they wait at the Argeen border between Egypt and Sudan, April 28, 2023. Satellite image 2023 Maxar Technologies/Handout via REUTERS</figcaption></figure>



NAIROBI, May 2 (Reuters)&nbsp;&#8211;&nbsp;Kenyan police fired tear gas at&nbsp;a small group of&nbsp;protesters in the capital Nairobi on Tuesday as the opposition resumed anti-government demonstrations following a one-month pause.



The main opposition coalition organised three days of demonstrations in March to protest high living costs and alleged fraud in last year&#8217;s election, which its leader Raila Odinga lost to President William Ruto.



Those protests were marred by clashes between police and demonstrators as well as sporadic incidents of violence, including one that Interior Minister Kithure Kindiki termed as &#8220;ethnically-laced arson&#8221; when a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3622KI&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">church and mosque were set</a>&nbsp;ablaze in Nairobi&#8217;s Kibera neighbourhood.



Odinga suspended the demonstrations in early April, agreeing to talks with Ruto&#8217;s representatives. But he later announced that the protests would resume, accusing the government of not negotiating in good faith.



A Kenyan television station on Tuesday showed police firing tear gas to disperse a handful of protesters in Nairobi&#8217;s Mathare neighbourhood, as well as footage of a minibus that had been set on fire on a road leading to the city centre.



A Reuters photographer saw a trailer on fire on a major bypass that goes around the capital.



In the central business district, there was a heavy police deployment and some shops remained closed. The police said on Monday that the protests would be considered unlawful.



Odinga&#8217;s Azimio La Umoja (Declaration of Unity) coalition said the protests would go ahead.



(Reporting by George Obulutsa, Thomas Mukoya and Humphrey Malalo; Editing by Aaron Ross, Alexandra Hudson)

A satellite view shows buses as they wait at the Argeen border between Egypt and Sudan

Kenyan anti-government protests resume with police firing tear gas

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-820x547.jpg" alt="" class="wp-image-424477" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/04/Sudan-conflict-threatens-supply-of-key-soft-drink-ingredient-1-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Gum arabic is seen on an Acacia trees in the western Sudanese town of El-Nahud that lies in the main farming state of North Kordofan December 18, 2012. Business is booming in the western Sudanese town of El-Nahud thanks to rising global demand for gum arabic, a natural and edible gum taken from acacia trees growing in the area. Picture taken December 18, 2012. To match Feature SUDAN-GUMARABIC/REUTERS/Mohamed Nureldin Abdallah</figcaption></figure>



LONDON/NEW YORK, April 28 (Reuters) &#8211; Sudan&#8217;s eruption into conflict has left international consumer goods makers racing to shore up supplies of gum arabic, one of the country&#8217;s most sought-after products and a key ingredient in everything from fizzy drinks to candy and cosmetics.



About 70% of the world&#8217;s supply of gum arabic, for which there are few substitutes, comes from the acacia trees in the Sahel region that runs through Africa&#8217;s third-largest country, which is being torn apart by fighting between the army and a paramilitary force.



Wary of Sudan&#8217;s persistent insecurity, companies dependent on the product, such as Coca Cola and Pepsico, have long stockpiled supplies, some keeping between three-to-six-months worth to avoid being caught short, exporters and industry sources told Reuters.



However, prior conflicts have tended to be focused in far-flung regions such as Darfur. This time, the capital Khartoum has been brought to a standstill in the fighting that broke out on April 15, paralysing the economy and disrupting basic communications.



&#8220;Depending on how long the conflict continues there may well be ramifications for finished goods on the shelf &#8211; branded goods made by household names,&#8221; said Richard Finnegan, a procurement manager at Kerry Group, a supplier of gum arabic to most major food and beverage firms.



Finnegan estimated that current stockpiles will run out in five-to-six months, a view echoed by Martijn Bergkamp, a partner at Dutch supplier FOGA Gum who estimated between three-to-six months.



Cloetta AB, a Swedish confectioner which makes Lakerol lozenges that use gum arabic, has &#8220;ample&#8221; stock of the ingredient, a spokesperson said in an email.



Global production of gum arabic is about 120,000 tonnes a year, worth $1.1 billion, according to estimates cited by Kerry Group. Most is found in the &#8220;gum belt&#8221; that stretches 500 miles from the East to the West of Africa where the arable land meets the desert, including in Ethiopia, Chad, Somalia and Eritrea.



Twelve exporters, suppliers and distributors contacted by Reuters said trade in the gum, which helps bind together food and drink ingredients, has ground to a halt.



Right now it’s &#8220;impossible” to source additional gum arabic from rural parts of Sudan because of the turmoil and road blockages, said Mohamad Alnoor, who runs Gum Arabic USA, which sells the product to consumers as a health supplement.



&#8216;CAN&#8217;T EXIST WITHOUT GUM ARABIC&#8217;



Kerry Group and other suppliers, including Sweden&#8217;s Gum Sudan, said communicating with contacts on the ground has been difficult and Port Sudan &#8211; from where product is shipped &#8211; has been prioritising civilian evacuations.



“Our suppliers are struggling to secure necessities because of the conflict,&#8221; Jinesh Doshi, managing director of Vijay Bros, an importer based in Mumbai, said. &#8220;Both buyers and sellers are clueless on when things will normalise.”



Alwaleed Ali, who owns AGP Innovations Co Ltd, a gum arabic exporting business, said his customers are looking for alternative countries to source gum arabic.



He said he sells the gum to Nexira SAS, based in Rouen, France, and Westchester, Illinois-based Ingredion Inc, two major ingredients suppliers to makers of products such as pet food, fizzy drinks and nutrition bars.



A spokesperson for Ingredion said in an email, &#8220;We have proactive measures in place across our business to ensure the continuity of supply for our customers.&#8221;



PepsiCo declined to comment on supply chain and commodity issues, while Coca-Cola did not return a request for comment.



&#8220;For companies like Pepsi and Coke, they can&#8217;t exist without having gum arabic in their formulations,&#8221; Dani Haddad, marketing and development director of Agrigum, a global top-ten supplier, said.



In their manufacturing process, food and drink companies use a spray-dried version of the gum that is powder-like, industry sources said. While cosmetics and printing manufacturers may be able to use substitutes, there is no alternative to gum arabic in fizzy drinks, where it prevents ingredients from separating.



In a sign of its importance to the consumer goods industry, gum arabic has been exempt from U.S. sanctions against Sudan since the 1990s, both because it&#8217;s a critical commodity and for fear of creating a black market.



Sudanese nomads tap the pebbly, amber-colored gum from acacia trees, which is then refined and packaged throughout the country. It accounts for the livelihoods of thousands of people and the more expensive variety can cost about $3,000 a tonne, according to Gum Sudan.



There is a poorer quality, cheaper gum from outside of Sudan, but the preferred ingredient is only found in acacia trees in Sudan, South Sudan and Chad, Alnoor said.



Fawaz Abbaro, the general manager of Savannah Life Company in Khartoum, said he had purchase orders and plans to export 60 to 70 tonnes of gum arabic but doubts he&#8217;ll be able to due to the conflict.



&#8220;It&#8217;s not stable even to get food or drink. It&#8217;s not going to be stable for business,&#8221; Abbaro said. &#8220;All trading will be jammed for the time being.&#8221;



(Reporting by Richa Naidu in London, Jessica DiNapoli in New York AND Rajendra Jadhav in Mumbai; Editing by Sharon Singleton)

FILE PHOTO: Gum arabic is seen on an Acacia trees in the western Sudanese town of El-Nahud

Sudan conflict threatens supply of key soft drink ingredient

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg" alt="" class="wp-image-420118" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/09/107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The new economic measures laid out by the U.K. government “will likely increase inequality”, according to a spokesperson from the International Monetary Fund.
Yuri Gripas | Reuters</figcaption></figure>



WASHINGTON, April 24 (Reuters)&nbsp;&#8211;&nbsp;The executive board of the International Monetary Fund on Monday approved the first review of Tanzania&#8217;s three-year extended credit facility, allowing immediate disbursement of about $153 million in budgetary support, the IMF said in a statement.



The IMF said&nbsp;Tanzania’s economic reform program is progressing well in a challenging global economic environment, but authorities should work to boost domestic revenues, while stepping up structural reforms to streamline bureaucracy and combat corruption.



The decision brings total disbursements under the $1.04 billion loan arrangement approved for Tanzania last year to about $305 million, the IMF said.



&#8220;Program performance has been strong. All quantitative performance criteria and indicative targets for December 2022 were met, and two of the three structural benchmarks for December 2022 were completed on time,&#8221; IMF Deputy Managing Director Antoinette Sayeh said.



Efforts to enhance domestic revenue mobilization and improve&nbsp;spending efficiency&nbsp;would help Tanzania finance priority investment and social spending while safeguarding debt sustainability, she added.



&#8220;Strengthening public finance management and oversight of state-owned enterprises is critical to contain fiscal risks,&#8221;&nbsp;and&nbsp;authorities should clear domestic arrears and prevent accumulation of new ones by strengthening cash management and commitment controls,&nbsp;she said.



Sayeh said Tanzania&#8217;s risk of debt distress remains moderate, but it was vital to continue prioritizing low-interest financing and ensure that risks from&nbsp;potential liabilities&nbsp;were well-contained.



(Reporting by Andrea Shalal; Editing by Christian Schmollinger and Lincoln Feast)

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East Africa

Kenya central bank nominee to push for local dollar bond issuance

World Bank approves $1 billion loan to Kenya

Global firms in Uganda face LGBTQ conundrum

IMF staff, Kenya reach agreement on over $1 bln of new financing

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Uganda parliament approves proposed 10% rise in 2023/24 budget

Zambia raises key interest rate to 9.5% to tame inflation

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Focus On: Rwanda’s push for more Intellectual Property Rights filling

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Ethiopia to offer up to five banking licenses to foreign investors

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Scholz’s East Africa trip to address regional conflict, green energy

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