<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-820x462.jpg" alt="" class="wp-image-482644" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-820x462.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-300x169.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-160x90.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-768x433.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-1536x866.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/Kenyas-weather-outlook-dire-as-cyclone-nears-president-says-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A view from a helicopter shows a safari lodge near the swollen river within the flooded area following heavy rainfall in the Talek region, of the Maasai Mara National Reserve in southwestern Kenya, May 1, 2024. Mara Elephant Project/Handout via REUTERS/File Photo</figcaption></figure>



NAIROBI, May 3 (Reuters)&nbsp;&#8211;&nbsp;Torrential rains that caused widespread flooding and landslides across Kenya in recent weeks, killing at least 210 people, are forecast to worsen over the rest of this month, President William Ruto said on Friday.



The floods have wreaked havoc, destroying homes, roads, bridges and other infrastructure across Kenya, East Africa&#8217;s largest economy. The death toll exceeds that from floods triggered by the El Nino weather phenomenon late last year.



&#8220;Sadly, we have not seen the last of this perilous period, as the situation is expected to escalate. Meteorological reports paint a dire picture,&#8221; Ruto said on Kenyan television. &#8220;Kenya may face its first-ever cyclone.&#8221;



Cyclone Hidaya is expected to make landfall in Tanzania, Kenya&#8217;s southern neighbour, on Saturday, bringing with it waves almost eight metres (26 feet) high and 165 kph (100 mph) winds, the IGAD Climate Prediction and Applications Centre said.



&#8220;This cyclone, named Hidaya, that could hit anytime now, is predicted to cause torrential rain, strong winds and powerful and dangerous waves,&#8221; Ruto said.



Earlier this week, Ruto ordered those living in landslide-prone areas to leave for safer ground.



The government has asked people living near 178 dams and water reservoirs, now close to overflowing, as well as those in informal settlements close to rivers and streams, to evacuate.



Ruto said the reopening of all schools for the upcoming term, which was meant to start this week, would be postponed until further notice.



The Nairobi government has set up 115 camps to host people displaced by the flooding, and is working closely with donors and humanitarian organisations to provide food and non-food supplies to those affected, he said.



Opposition leaders and rights groups have criticised Ruto&#8217;s administration for its response to the disaster.



On Thursday, Human Rights Watch accused authorities of failing to put in place a timely national response plan, despite warnings from the Kenya Meteorological Department a year ago about the likely impact of flooding caused by El Nino.



(Reporting by George Obulutsa and Hereward Holland; editing by Mark Heinrich)

FILE PHOTO: A view from a helicopter shows safari lodges near the river within the flooded area following heavy rainfall in the Talek region, of the Maasai Mara

Kenya’s weather outlook ‘dire’ as cyclone nears, president says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="517" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg" alt="" class="wp-image-416545" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-820x517.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-300x189.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-143x90.jpeg 143w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-768x484.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-1536x969.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report-scaled.jpeg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A participant stands near a logo of World Bank at the International Monetary Fund &#8211; World Bank Annual Meeting 2018 in Nusa Dua, Bali, Indonesia, October 12, 2018.
Johannes Christo | Reuters</figcaption></figure>



DAR ES SALAAM, April 24 (Reuters)&nbsp;&#8211;&nbsp;The World Bank has suspended new disbursements from a $150 million fund to expand a national park in southern Tanzania, a spokesperson said on Wednesday, after the lender received allegations of killings and evictions by rangers last year.



Two anonymous complainants have accused rangers from the Ruaha National Park of extrajudicial killings, enforced disappearances, evictions, torture and cattle seizures perpetrated against local villagers, according to the World Bank&#8217;s independent complaints mechanism.



&#8220;The World Bank is deeply concerned about the allegations of abuse and injustice related to the&#8230; project in Tanzania,&#8221; a spokesperson said in a statement. &#8220;We have therefore decided to suspend further disbursement of funds with immediate effect.&#8221;



Government spokesman Mobhare Matinyi said the allegations were false but that the government was investigating &#8220;to see if there was any misconduct from any staff so that it takes appropriate action&#8221;.



He said the suspended final tranche of the loan amounted to $25 million.



Several Tanzanian government initiatives to expand tourism have faced criticism from human rights advocates, including in the north of the country where thousands of Maasai have been evicted from their traditional homelands.



A report last year by the Oakland Institute, a California-based think-tank, accused Ruaha park rangers of sexual violence, and said local communities&nbsp;across&nbsp;Tanzania were bearing the cost of generating tourism revenues under the guise of protecting the environment.



The government says expanding the tourism sector is key to economic development and that it has provided fair compensation to people evicted from their homes.



The World Bank project was approved by its board in 2017 and is expected to end in February 2025.



(Editing by Hereward Holland and Gareth Jones)

106944604-16321717072021-09-20t205319z_656748898_rc2wtp9oerrm_rtrmadp_0_worldbank-ethics-report

World Bank suspends Tanzania tourism fund over abuse allegations

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" 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>



ADDIS ABABA, April 11 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia may have to decide on a big currency devaluation sooner rather than later to secure a rescue loan from the International Monetary Fund (IMF), which left the country last week without reaching a much-needed deal with authorities.



East Africa&#8217;s most populous country, already struggling with high inflation, became the third African state in as many years to default on its debt in December.



Ethiopia hasn&#8217;t received any IMF funds since 2020 and its last lending arrangement with the fund went off track in 2021. The federal government and a rebellious regional authority signed a deal in late 2022 to end a two-year civil war.



The IMF, which said progress was made during its latest visit, has not said that currency reform is necessary for its support. But the Fund usually favours flexible, market-determined exchange rates. Ethiopia has requested $3.5 billion of support from the IMF, sources told Reuters last year.



Chronic foreign currency shortages and a tightly controlled exchange rate has allowed a black market to flourish, on which the birr currently trades at between 117 and 120 per dollar, more than double the official rate of around 56.7&nbsp;ETB=.



&#8220;It seems that the Ethiopian authorities have found accepting the demands of the IMF hard,&#8221; said Abdulmenan Mohammed, an Ethiopian economic analyst based in Britain.



&#8220;The Ethiopian authorities are worried about devaluation of the birr, (which) would have serious negative economic repercussions, including soaring inflation&#8230; and surging foreign currency denominated debts in terms of birr.&#8221;



<h2 class="wp-block-heading" id="h-playing-hardball">&#8216;PLAYING HARDBALL&#8217;</h2>



In early 2021, Ethiopia requested a debt restructuring under the G20&#8217;s Common Framework, a process established in response to the COVID-19 pandemic to bring in newer creditor countries like China and India. But progress was initially delayed by the civil war.



The country&#8217;s external debt was $28.2 billion at the end of March, based on government data.



In August 2023, it secured a debt payments suspension from its largest bilateral creditor China, which from 2006 to 2022 committed to lending the country $14 billion, according to Boston University&#8217;s Chinese Loans to Africa Database.



The rest of Ethiopia&#8217;s bilateral creditors followed suit in December, but said they could cancel the relief if Ethiopia did not get an IMF deal by March 31. When the deadline lapsed, it was extended to June 30.



There are widely varying estimates of the size of currency devaluation the IMF would accept, that could pave the way for a deal.



Irmgard Erasmus of research firm Oxford Economics said that she expects a weakening of 15% to coincide with an IMF staff-level deal on a bailout loan, a prerequisite for its external debt restructuring moving forwards.



&#8220;We retain the view that the IMF will require a good faith measure that solidifies Ethiopia&#8217;s intent to implement a more flexible FX (foreign exchange) regime,&#8221; she said in a note to clients. &#8220;(This) will set the scene for a series of stepwise devaluations on the path to FX liberalisation and monetary policy reform.&#8221;



More than one currency adjustment is likely, the first between 30-50%, said Connor Vasey, a consultant at J.S. Held, pointing to Egypt, which devalued its pound 38% and secured a larger IMF loan in March.



The Ethiopians probably prefer a more gradual devaluation but have a weak negotiating position, Vasey said, after a previous IMF loan programme expired in 2021, amid the conflict and concerns about the country&#8217;s ability to pay its debts.



&#8220;Ethiopia is coming into the meeting room with the IMF that is playing hardball and saying, &#8216;You don&#8217;t really have a foot to stand on, in terms of negotiating down our position,'&#8221; he said.



Nonetheless, Vasey said he expected Ethiopia to secure an IMF deal soon.



&#8220;There&#8217;s an international push to get this all lined up. It&#8217;s just a question of sequencing of the reforms,&#8221; he said.



An IMF spokesperson pointed to comments made earlier this month by spokesperson Julie Kozack, who responded to direct questions on why Ethiopia did not secure a loan during the visit and whether it is likely to get one at the Fund&#8217;s Spring Meetings next week in Washington DC.



&#8220;The team made substantial progress,&#8221; she said. &#8220;These discussions are continuing and will continue at the upcoming Spring Meetings.&#8221;



Ethiopian government officials did not respond to requests for comment. Authorities are committed to FX reform, state finance minister Eyob Tekalign told Reuters in October 2022.



&#8220;The exchange rate unification remains one important policy goal,&#8221; he said at that time. &#8220;But we are just doing it gradually.&#8221;



(Reporting by Rachel Savage in Johannesburg and Dawit Endeshaw in Addis Ababa; Additional reporting by Duncan Miriri in Nairobi, Editing by Karin Strohecker and Jane Merriman)

107004870-16427966702022-01-21t201709z_969185203_rc2w3s99wb9o_rtrmadp_0_argentina-imf-mexico

Ethiopia faces tough devaluation decision to secure IMF bailout

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-820x547.jpg" alt="" class="wp-image-474957" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/Y4ZRO6HDHJLMJN6BQVVOUBSW3M-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: An aerial view shows the headquarters of the Central Bank of Brazil (C) in Brasilia January 20, 2014. REUTERS/Ueslei Marcelino/File Photo</figcaption></figure>



KAMPALA, April 9 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s foreign exchange reserves fell by about 12% between June 2023 and January this year because of external debt payments and the central bank&#8217;s inability to buy foreign currency due to a slide in the Ugandan shilling&nbsp;UGX=.



Reserves dropped from $4.07 billion in June to about $3.58 billion at the end of January, reaching 3.4 months of import cover excluding oil project-related imports, the central bank said on Tuesday in its State of the Economy report.



The Bank of Uganda targets foreign exchange cover of 4 months of imports, excluding oil projects, an International Monetary Fund staff report published in March said.



Uganda&#8217;s rising public debt, more than half of which is external, has been eating up a growing share of revenues and hitting other spending priorities like education and health.



Total public debt stood at $24.7 billion, 60% of which was external, at the end of 2023, finance ministry figures show.



The Bank of Uganda said foreign reserves could rise due to expected inflows from budget support loans, but that the outlook for the country&#8217;s balance of payments was fragile.



&#8220;Delayed disbursement of expected budget support loans, higher-than-projected government expenditure on imports, and &#8230; tight global and domestic financial market conditions may disrupt the reserve build-up programme,&#8221; it said.



(Reporting by Elias Biryabarema; Editing by Alexander Winning and Alexander Smith)

FILE PHOTO: Aerial view shows the headquarters of the Central Bank of Brazil in Brasilia

Ugandan foreign exchange reserves drop 12% due to debt payments

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" 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>



ADDIS ABABA, April 5 (Reuters)&nbsp;&#8211;&nbsp;The World Bank and Ethiopia have signed loan agreements totalling $1.72 billion to enhance electricity and water supply, as well as to facilitate the movement of food to markets, the finance ministry said on Friday.



The bank will allocate $523 million to expand the Horn of Africa nation&#8217;s electricity network and boost renewable energy generation, according to the ministry&#8217;s statement.



An additional $500 million will go towards two projects aimed at boosting access to food markets, including improving road networks in rural areas, the statement said.



Ethiopia, which has also experienced foreign-currency shortages, continues to feel the effects of the COVID-19 pandemic, a two-year war in the northern Tigray region, and droughts, floods, and locust invasions in parts of the country



The remaining World Bank funding will be allocated to improving water supply and supporting programs in towns that employ disadvantaged youths.



Typically, World Bank loans carry low to zero interest rates and have repayment periods of 30 to 40 years.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Bate Felix)

IMF And World Bank Headquarters During Virtual Spring Meetings

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, April 4 (Reuters)&nbsp;&#8211;&nbsp;Kenya plans to increase the capital requirements for commercial banks to account for emerging risks in areas like information communication technology and climate change, its central bank governor said on Thursday.



Although the East African nation has a robust financial sector, with its banks expanding around the region in the past two decades, it has seen the capital adequacy ratios of some institutions come under pressure in recent years.



&#8220;The capital requirements for banks need to be increased. We have seen increased risks whether it is from climate change or cybersecurity,&#8221; Kamau Thugge, the central banker, told a news conference, without mentioning the potential size of the increment.



The central bank was concerned about rising non-performing loans in the banking sector, which increased to 15.5% of total loans in February this year, from 14.8% at the end of last year, he said.



The proposal to raise the capital will be published in the next one month for a public discussion, Thugge said, in line with the legal requirements.



Kenya requires a minimum capital of 1 billion shillings ($7.69 million) for those who wish to start a bank.



Banks that are already operating are required to maintain 10.5% core capital to total risk-weighted assets, and 14.5% total capital to risk-weighted assets.



&#8220;We need strong banks,&#8221; Thugge said.



($1 = 130.0000 Kenyan shillings)



(Reporting by Duncan Miriri; Editing by Devika Syamnath)

XRWAJLZOAVK3DL2J5JMRWBBQ6A

Kenya to raise capital requirements for banks, central banker says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg" alt="" class="wp-image-427563" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/09/IMF-World-Bank-to-proceed-with-annual-meetings-in-Morocco-in-October-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo</figcaption></figure>



April 2 (Reuters)&nbsp;&#8211;&nbsp;The International Monetary Fund concluded its visit to Ethiopia to discuss a request for IMF support on Tuesday without reaching an agreement, leaving the East African nation short of a commitment it made with its official international creditors.



&#8220;The team made substantial progress towards establishing how the IMF could support the authorities&#8217; economic program,&#8221; and discussions will continue later this month in Washington, the IMF said.



But the Paris Club of developed creditor nations, which does not include China, said last year that an agreement to suspend Ethiopia&#8217;s debt payments through 2025 could be voided if the country did not secure an IMF loan by March 31.



It was not clear whether Paris Club members would enforce that deadline. Ethiopia reached a separate debt-service suspension deal with China earlier in 2023.



Ethiopia has been without an IMF program since its last lending arrangement with the fund expired in late 2022.



In December, Ethiopia became the third African nation to default in as many years after it failed to make a coupon payment on its $1 billion Eurobond.



Ethiopia&#8217;s economy is reeling from high inflation, a shortage of hard currency and growing external debt repayments, after the federal government and a rebellious regional government signed a deal in late 2022 to end two years of armed conflict.



The country&#8217;s external debt totaled $28.2 billion at the end of March, according to government data, including a $1 billion international bond maturing in December 2024&nbsp;XS1151974877=TE.



Between 2006 and 2022, Chinese lenders had committed to extending more than $14 billion in loans to the country, according to Boston University.



(Reporting by Jahnavi Nidumolu in Bengaluru; Writing by Duncan Miriri; Editing by Hugh Lawson and Bill Berkrot)

FILE PHOTO: The IMF logo is seen outside the headquarters building in Washington

IMF ends Ethiopia visit, deal not yet secured

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-820x547.jpg" alt="" class="wp-image-470881" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/WCQYHSJSLRIOFLI4ZD4XX22NTY-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A container ship is seen as its docked next to cranes at the port of Mombasa, Kenya, October 23, 2019. Picture taken October 23, 2019. REUTERS/Baz Ratner/File Photo</figcaption></figure>



NAIROBI, March 28 (Reuters)&nbsp;&#8211;&nbsp;Kenya will allow&nbsp;landlocked&nbsp;Uganda&#8217;s state oil firm to import petroleum products through its port of Mombasa,&nbsp;Uganda&#8217;s&nbsp;energy ministryconfirmed&nbsp;on Thursday, to end a row between the two neighbours.



Uganda has been seeking alternative ways of importing petroleum products, including through a Tanzanian port, after its oil retailers for decades received their cargo through affiliated firms in Kenya.



Solomon Muyita, spokesperson for Uganda&#8217;s ministry of energy and minerals, said the first shipment under the new system was expected in May.



&#8220;Kenya has agreed to give us a licence, UNOC (Uganda National Oil Company) is now free to import through Mombasa,&#8221; he said.



The Business Daily newspaper, which first reported the news, quoted&nbsp;Kenyan&nbsp;Energy Minister Davis Chirchir as saying UNOC&nbsp;would&nbsp;use the Kenya Pipeline Company to move the products, meaning that Kenya would&nbsp;still benefit from the arrangement.



Uganda imported $1.6 billion worth of petroleum products in 2022, mostly originating from the Gulf. Some 90% of the products are imported through Kenya.



It announced in November that it&nbsp;planned&nbsp;to hand over exclusive rights&nbsp;to&nbsp;supply all petroleum products to a unit of&nbsp;the&nbsp;global energy trader Vitol,which would then supply UNOC.



Using Kenyan firms to import oil had &#8220;exposed Uganda to occasional supply vulnerabilities&#8221;&nbsp;where Ugandan retail companies were considered secondary whenever there were supply disruptions affecting retail prices, the government said at the time.



Kenyan&nbsp;President William Ruto and his Ugandan counterpart Yoweri Museveni met in Uganda last month and agreed to resolve the feud, Kenyan media outlets reported.



(Reporting by Duncan Miriri and Elias Biryabarema; Writing by Duncan Miriri; Editing by Michael Perry and Kevin Liffey)

A container ship is seen as its docked next to cranes at the port of Mombasa

Kenya and Uganda resolve oil import row, Uganda says

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-820x547.jpg" alt="" class="wp-image-470834" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/XP6IM6NFDFLQ5IWMSAQNFPEJA4-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman displays a selection of Kwacha notes, the national currency and money used in Zambia in Lusaka, Zambia February 27, 2024. REUTERS/Namukolo Siyumbwa/File Photo</figcaption></figure>



LONDON, March 28 (Reuters) &#8211; Zambia&#8217;s deal with bondholders this week suggests it will finally emerge from more than three years in default &#8212; and become the first successful restructuring under the debt-rework architecture designed by the G20.



The deal is a much-needed win for the so-called Common Framework. The African nation&#8217;s President Hakainde Hichilema posted on X that &#8220;history has been made,&#8221; while International Monetary Fund (IMF) President Kristalina Georgieva lauded the &#8220;important achievement.&#8221;



Global leaders hope that Ghana may soon reach its own deal with lenders, boosting the Framework before the IMF World Bank Spring Meetings in Washington, D.C. in mid-April.



But the scars from Zambia&#8217;s drawn-out battles with creditors &#8211; and its years-long, stop-start progress &#8211; have left investors, observers and many policymakers themselves wary of the multilateral mechanism&#8217;s efficacy.



It was designed to expedite talks between a myriad of lenders from Chinese state-owned institutions to London-based asset managers and New York banks.



&#8220;I don&#8217;t think anyone is filled with a tremendous sense of confidence that the Common Framework is going to speed up the debt negotiation process,&#8221; said London-based Kevin Daly, head of emerging market debt at Abrdn, which held some of Zambia&#8217;s $3 billion worth of international bonds.



Ricardo Klinger, Brazil&#8217;s Finance Ministry official in the G20 International Financial Architecture Working Group, said those involved in Zambia&#8217;s restructuring would discuss lessons learned. Brazil currently holds the G20 presidency.



&#8220;The stages are being completed more quickly because it is a learning process,&#8221; Klinger said.



He said they aim to publish a document in July incorporating feedback from all sides of Zambia&#8217;s restructuring to identify bottlenecks and potential improvements to gain time.



&#8220;The document seeks to synthesize this learning in these recent cases to build a more refined process,&#8221; he said.



<h2 class="wp-block-heading" id="h-first-to-fall">FIRST TO FALL</h2>



Zambia was the first African country to default amid the economically punishing COVID-19 pandemic, doing so in late 2020.



Foreseeing more collapses, the G20 launched the Common Framework to bring all creditors to low-income nations under one roof &#8212; particularly China, whose lending to developing countries exploded in the decade before the pandemic.



For many, though, Zambia has been a cautionary tale &#8212; throwing into sharp focus disagreements around equal burden sharing and transparency.



The delays have hamstrung much-needed investments in the country, curtailed economic growth and weighed on local financial markets. A devastating drought has exacerbated the pain, hitting hydropower and food production.



In November, an unexpected official creditor smackdown of Zambia&#8217;s initial bondholder deal shocked its leaders &#8212; and bondholders like Daly.



Members of the Official Creditor Committee (OCC), co-chaired by China and France, said it did not offer Comparability of Treatment, meaning bondholders were not taking a comparable hit to the debt relief that official lenders offered.



Zambia has promised that the new deal has official creditor sign-off, but Daly and others said communication and transparency issues loom for other restructurings.



&#8220;There is a major flaw,&#8221; Daly said.



Bondholders, for example, do not have access to the terms official creditors give countries, effectively leaving them working in the dark. Details are sometimes published later, but not always, potentially leaving the public in the dark as well.



&#8220;Improvements could &#8230; be made to transparency and information sharing between official and private creditors, as well as clearly defined rules on Comparability of Treatment to ensure agreements under the Common Framework are timely and equitable,&#8221; said Christian Libralato, EM Portfolio Manager at BlueBay Asset Management.



<h2 class="wp-block-heading" id="h-aiming-to-revise">AIMING TO REVISE</h2>



Others agree with Klinger that Zambia&#8217;s pain could help forge a successful Framework.



&#8220;Some of those lessons will be put to work in Ghana, and some will be put to work in Ethiopia,&#8221; said Giulia Pellegrini, portfolio manager for emerging markets debt at Allianz Global Investors. &#8220;There will be some transferable skills and lessons.&#8221;



&#8220;There&#8217;s definitely a lot of push to have more successful cases,&#8221; she added.



Ghana is currently in formal talks with holders of more than $13 billion in international bonds and wants to speed up remaining negotiations. Ethiopia defaulted on its sole $1 billion Eurobond in December, but talks with bondholders have been slow.



The IMF is also working on key fixes; it is in the middle of a years-long revision of its debt-sustainability analyses (DSA) and has promised to share them earlier with creditors. DSAs detail how sustainable a country&#8217;s debt burden is and form the basis for restructurings.



It also launched the Global Sovereign Debt Roundtable, bringing together representatives from the countries, private lenders, the World Bank and the G20 to identify and solve key problems with the Framework. Such issues include how to calculate comparability of treatment, how to treat debt to state-owned enterprises, and cut-off dates for debt included in reworks.



&#8220;They are aware of these issues, and they have begun a process to address these, but it won&#8217;t be an easy announcement in the Spring Meetings,&#8221; Pellegrini said.



That may not be much comfort to other countries in a similar situation.



&#8220;I am not sure that the three years it took to get Zambia done will commend the Common Framework to other countries that may be technically eligible to apply for Common Framework treatment,&#8221; lawyer and veteran sovereign debt expert Lee Buchheit told Reuters.



(Reporting by Libby George in London, additional reporting by Marcela Ayres in Brasilia and Rodrigo Campos in New York, editing by Karin Strohecker and Hugh Lawson)

FILE PHOTO: Zambian currency, the Kwacha

Zambia’s debt-rework battle scars mar its Common Framework success

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-820x547.jpg" alt="" class="wp-image-470494" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/KU2XLVYFJJIQNE46PWTLC5EAAY-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A client uses an automated teller machine (ATM) at the Commercial Bank of Ethiopia in Addis Ababa, Ethiopia, July 31, 2019. REUTERS/Maheder Haileselassie Tadese/File Photo</figcaption></figure>



ADDIS ABABA, March 27 (Reuters)&nbsp;&#8211;&nbsp;The state-owned Commercial Bank of Ethiopia has recovered more than three-quarters of the $14 million it lost when a software glitch earlier this month allowed customers to withdraw more funds than they held in their accounts, it has said.



Around 78% of the 801 million birr withdrawn from cash machines or transferred during the night of March 15, or 622.9 million birr ($11 million), has been returned, the president of the bank Abie Sano said on Tuesday.



The lender has published the names of the more than 500 people who are yet to return the balance, Abie said.



He previously blamed university students for being largely responsible for the &#8220;theft&#8221;, accusing them of sharing news about the glitch via social media.



The problem occurred during an update to the bank&#8217;s systems, Ethiopia&#8217;s central bank said earlier this month, adding that there was no risk to customers or the overall financial system.



($1 = 56.6083 birr)



(Reporting by Dawit Endeshaw; Writing by Hereward Holland; editing by David Evans)

FILE PHOTO: A client uses an automated teller machine (ATM) at the Commercial Bank of Ethiopia in Addis Ababa

Commercial Bank of Ethiopia recovers $11 mln lost in system glitch

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-820x547.jpg" alt="" class="wp-image-416704" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/04/LIIL4DGYFVNP5EAHWSIR7IM3BM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Zambia&#8217;s President Hakainde Hichilema addresses the 76th Session of the United Nations General Assembly at U.N. headquarters in New York, U.S. on September 21, 2021. Spencer Platt/Pool via REUTERS</figcaption></figure>



March 25 (Reuters)&nbsp;&#8211;&nbsp;Zambia said on Monday that it had reached an agreement with a group of private creditors on restructuring $3 billion of its international bonds &#8211; a major step that brings the country closer to emerging from its long-delayed debt rework.



The latest deal proposes swapping the country&#8217;s three existing instruments into two amortising bonds, one of which would deliver higher repayments if the country&#8217;s economic outlook and capability of dealing with its debt burden improves.



&#8220;History has been made!,&#8221; the country&#8217;s President Hakainde Hichilema said on social media platform X. &#8220;We are pleased to announce the agreement with our Eurobond holders.&#8221;



Zambia defaulted three years ago and is reworking its debt under the Common Framework, a G20 platform designed to ensure swift and smooth debt overhauls for low-income nations.



But the process has been beset by long delays, which have hamstrung much needed investments, curtailed economic growth and weighed on local financial markets. The situation has worsened amid a devastating drought that has been declared a national disaster and which affects hydropower generation and food production.



Zambia secured a $1.3 billion loan from the International Monetary Fund in 2022, which required it to restructure its debt.



<h2 class="wp-block-heading" id="h-changes-in-substance">CHANGES IN SUBSTANCE</h2>



Monday&#8217;s proposal is in structure much like a preliminary deal that was reached late last year, but was then derailed after being rejected by official creditors, which include countries such as China and France.



However, there are some changes in substance. While the overall claim that bondholders have against the country grew to $3.98 billion due to accumulated unpaid interest, under the new deal investors will receive bonds with a face value&nbsp;of&nbsp;$3.05 billion &#8211; a reduction from the $3.135 billion proposed in October.



Under the agreement, bondholders would forego approximately $840 million of their claims, the statement said, compared to $700 million in the previous proposal. Cash flow relief remained the same at around $2.5 billion during the IMF programme period.



The government also said in the announcement it had received confirmation from official creditors that the agreed terms were compatible with regards to comparability of treatment.



An IMF spokesperson said via email the &#8220;agreement is consistent with the parameters of the IMF program.&#8221;



Bondholders also welcomed the agreement in a separate emailed statement.



&#8220;We are pleased to have finally reached a definitive and conclusive agreement with the Government that is supported by all stakeholders,&#8221; said the group of private creditors, which include Amia Capital, Amundi, Farallon, Greylock Capital Management, and BlueBay Asset Management.



The government said it will ensure that &#8220;certain other creditors do not receive a better recovery in the restructuring on net present value terms&#8221; and also a loss reinstatement clause if Zambia were to default during the term of the existing International Monetary Fund programme, the statement added.



(Reporting by Jorgelina do Rosario and Karin Strohecker, additional reporting by Anait Miridzhanian and Rachel Savage, Editing by Alexander Winning, Toby Chopra and Sharon Singleton)

Annual United Nations General Assembly in New York

Zambia strikes preliminary deal on $3 bln international bond rework

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-820x547.jpg" alt="" class="wp-image-468228" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/FMO2CUINZBL7VHZGL7YQ5AF4UM.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">IMF Managing Director Kristalina Georgieva meets with Zambia&#8217;s Minister of Finance Situmbeko Musokotwane and Governor of the Bank of Zambia Denny Kalyalya at the Ministry of Finance in Lusaka, Zambia January 23, 2023. IMF Photo/Kim Haughton/Handout via REUTERS/File Photo</figcaption></figure>



LONDON/NEW YORK, March 19 (Reuters)&nbsp;&#8211;&nbsp;A group of Zambia&#8217;s international bondholders has signed a non-disclosure agreement with the government to discuss a $3 billion debt restructuring proposal, three sources familiar with&nbsp;the situation&nbsp;said on Tuesday.



The government sent a formal debt rework proposal to the steering committee of the creditor group last week, two of the sources said. Entering into a non-disclosure agreement usually marks the start of formal restructuring talks.



A Zambian finance ministry spokesperson did not immediately respond to a request for comment. Advisers for the creditor group declined to comment.



Zambian President Hakainde Hichilema in late February said the last remaining official creditors, China and India, had signed restructuring agreements, raising hopes that the much-delayed restructuring process would soon be finished.



The official creditors had objected to previous bondholder deals on the grounds that they did not offer comparable debt relief to theirs, but did not say at the time what the bondholders needed to propose instead.



Zambia has three defaulted bonds outstanding, with original maturities in 2022, 2024 and 2027.



Zambia was the first African country to default in the COVID-19 era, in late 2020, but its restructuring process has been beset by setbacks, with the rejection of the bondholder deals last year being only the latest.



(Reporting by Libby George, Rodrigo Campos and Rachel Savage; Editing by Karin Strohecker, Leslie Adler and Mark Porter)

FMO2CUINZBL7VHZGL7YQ5AF4UM

Zambia bondholders begin formal talks on $3 billion debt rework proposal, sources say

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO.jpeg" alt="" class="wp-image-467962" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO-160x90.jpeg 160w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">ADDIS ABABA, Ethiopia &#8211; Dec. 7, 2023: A branch of the Commercial Bank of Ethiopia in Addis Ababa. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Ethiopia’s largest bank is struggling to recoup millions of dollars after a glitch over the weekend allowed customers to withdraw unlimited funds, according to local media reports.



More than $40 million was reportedly withdrawn from the state-owned Commercial Bank of Ethiopia or transferred to other banks, as customers discovered they could withdraw more than their total balance. Transactions were halted several hours later.



The bank’s President Abie Sano told a press conference on Monday that a large portion of the cash was withdrawn by students, with the BBC reporting that long lines formed at campus ATMs.



Several universities have urged students to return cash that isn’t theirs, and Sano reportedly told Monday’s press conference that anybody who returns the money will not be criminally prosecuted.



In a post on X, the CBE confirmed the service interruption but denied that it was the result of a cyber attack. It added that its ATM services were now “fully operational,” according to a Google translation.



Ethiopia’s central bank, which oversees its financial sector, said in a statement that the interruption was a result of system security checks and “not an incident that endangers the bank, its customers and the entire financial system,” according to a Google translation.



CNBC has contacted the CBE for comment.

107389217-1710835109118-gettyimages-1832684732-ETHIOPIA_ECO

‘Glitch’ at Ethiopia’s biggest bank sees customers withdraw millions that isn’t theirs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg" alt="" class="wp-image-463267" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Copper plates on wagons ready for onward shipping at the Mufulira refinery, operated by Mopani Copper Mines Plc, in Mufulira, Zambia, on Friday, May 6, 2022. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



KoBold Metals, a mining startup backed by billionaires including Bill Gates and Jeff Bezos, is bullish on the discovery potential of some of the most sought-after energy transition metals.



It comes shortly after the Silicon Valley-based metals exploration company announced the rare discovery of a vast copper deposit in Zambia.



Josh Goldman, president of KoBold Metals, told CNBC that the firm’s investors were thrilled by the discovery, particularly at a time when the mining industry is struggling to keep pace with a metals-intensive energy transition.



“They are feeling delighted about this news because this is what we set out to do. The point of the company is to discover, find and develop mineral resources that we need for the energy transition,” Goldman said via videoconference.



“This is the first major win for the company, and it is among the most extraordinary ore bodies in the world,” he added.



KoBold Metals says it uses artificial intelligence to create a “treasure map” to help find new deposits of materials such as copper, lithium, cobalt and nickel. The company currently has more than 60 exploration-stage projects across several countries.



The startup’s investors include U.S. venture capital firm Andreessen Horowitz, Norwegian energy giant Equinor, the world’s largest mining group BHP, and Breakthrough Energy, a climate and technology fund founded by Bill Gates in 2015.



Breakthrough Energy’s backers include Bridgewater Associates’ Ray Dalio, Virgin Group’s Richard Branson, Alibaba’s Jack Ma and Amazon’s Jeff Bezos.



KoBold Metals is now focusing on advancing its Mingomba project in Zambia, which it expects to start producing copper within 10 years, and discovering the next trove of critical minerals, according to Goldman.



“The Central African copper belt is the part of the world where you can find things of this extraordinary grade. And that’s why we are there. The geology is extraordinary,” he said.



“It is not just that there haven’t been deposits like this. It’s that there are more to be found. Here is Mingomba — and then where is the next Mingomba after this? This is the part of the world and style of deposit where we can find resources of this scale and quality, and Zambia provides an operating environment that is really extraordinary,” he added.



Copper is in high demand due to its use in renewable energy infrastructure, energy storage systems and electric vehicles. Zambia is Africa’s second-largest copper producer after the Democratic Republic of the Congo.



<h2 class="wp-block-heading" id="h-the-potential-for-discovery-is-great"><a></a>‘The potential for discovery is great’</h2>



KoBold Metals said that most copper currently being mined has an ore grade of around 0.6%, whereas its Mingomba deposit has copper ore grades of more than 5%.



“That means that you have to mine a lot less rock in order to get the same amount of copper,” Goldman said.



“For a 0.5% ore deposit, you have to mine 200 kilograms of rock to get 1 kilogram of copper. For a 5% ore deposit, you have to mine 20 kilograms of rock to get 1 kilogram of copper. So, that’s a lot less Earth that you have to disturb, that’s a lot less waste that you create.”



Goldman said KoBold Metals plans to list shares publicly in the next three to four years.



“We do expect in due course that being a public company is likely going to be the best way to finance the business,” he added.



“The point of the company is to be serially successful in exploration — and to improve exploration success overall and to decrease the capital intensity of discovery,” Goldman said. “We think the potential for discovery is great. There is a lot more to be found in Zambia.”

107368871-1707125203700-gettyimages-1244583255-ZAMBIA_COPPER

Bill Gates-backed startup confident it can unearth more buried treasure after a historic copper find

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="800" height="508" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW.jpg" alt="" class="wp-image-460039" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW-300x191.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW-142x90.jpg 142w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/LYNXMPEBBS0LW-768x488.jpg 768w" sizes="(max-width: 800px) 100vw, 800px" /><figcaption class="wp-element-caption">A general picture shows the skyline of Tanzania&#8217;s port city of Dar es Salaam, July 12, 2013. REUTERS/Andrew Emmanuel</figcaption></figure>



DAR ES SALAAM, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;Tanzania has switched on the first turbine of a new hydroelectric plant set to double power generation capacity but which has drawn stiff opposition from conservationists because of its location in a U.N.-designated World Heritage Site.



Doto Biteko, energy minister and deputy prime minister, said while visiting the 2,115 megawatt (MW) Julius Nyerere Hydropower Plant on Sunday that the turbine, with a capacity of 235 MW, was now contributing power to the grid.



He said the turbine would help reduce months-long power rationing, adding that rationing would end when the second turbine of the nine-turbine plant joins the grid next month.



Before construction of the hydro project began in 2019, conservationists warned that building a dam on a major river that runs through the Selous Game Reserve could affect wildlife and their habitats downstream.



The reserve is among the largest protected areas in Africa, harbouring one of the most significant concentrations of animals including elephant, black rhino and cheetah and a large variety of habitats, according to United Nations agency UNESCO.



The government forged ahead with the project under former President John Magufuli and his successor Samia Suluhu Hassan&#8217;s administration considers it a key part of efforts to boost power supply in a country where less than half of the population has access to electricity.



Biteko said the government would ensure all hydroelectric projects respect water sustainability.



Before the first turbine of the Julius Nyerere Hydropower Plant was connected to the grid, Tanzania had an installed generation capacity of 1,900 MW, with natural gas contributing nearly two-thirds of that amount.



(Reporting by Nuzulack Dausen; Editing by Alexander Winning and Miral Fahmy)

A general picture shows the skyline of Tanzania’s port city of Dar es Salaam

Tanzania switches on first turbine of hydro plant in World Heritage Site

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="530" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg" alt="" class="wp-image-433145" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-820x530.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-300x194.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-139x90.jpg 139w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-768x497.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A-1536x994.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/12/XRWAJLZOAVK3DL2J5JMRWBBQ6A.jpg 1920w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS/Njeri Mwangi/</figcaption></figure>



NAIROBI, Feb 15 (Reuters)&nbsp;&#8211;&nbsp;Kenya&#8217;s government said on Thursday that it would buy back more than $1.4 billion of its $2 billion international bond maturing in June, announcing the results of a tender offer it launched last week.



The East African country has been on the radar of investors because they feared it might not be able to repay due to its strained public finances.



This week Kenya sold a new $1.5 billion Eurobond at great cost to fund the buyback of a large portion of the $2 billion bond.



The government said in a regulatory notice that it would buy $1.443 billion in aggregate principal amount of the bond, slightly more than the maximum tender offer it had announced on Tuesday.



It will buy investors&#8217; holdings back at par, or face value.



An accrued interest payment will be paid in addition to the purchase price, the notice said.



Confidence that the Eurobond would be repaid has lifted the local shilling currency KES= in recent days, helping it recover to its strongest level against the dollar since June 2023 on Thursday.



However the double-digit yield Kenya was forced to pay on the $1.5 billion bond sold this week is an indication that it is still seen as risky by investors.



The pressure on the Kenyan government&#8217;s finances has forced it to try to squeeze every shilling it can from taxpayers, angering voters who had supported the current government on the premise it would lower the cost of living.



But it benefits from international backing, including from the International Monetary Fund, which boosted its support programme by $941 million in January.



(Reporting by George Obulutsa and Alexander Winning; Additional reporting by Rachel Savage; Editing by Kirsten Donovan, Andrew Heavens and Alex Richardson)

Kenya to buy back over $1.4 bln of bond that had unnerved investors

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="469" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg" alt="" class="wp-image-454063" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-820x469.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-300x172.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-157x90.jpg 157w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-768x440.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-1536x879.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/34DG5BPJTVPCBBGSRYAMLZGNRA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A general view shows the capital city of Kampala in Uganda, July 4, 2016. REUTERS/James Akena</figcaption></figure>



KAMPALA, Feb 8 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank raised 1.3 trillion shillings ($339 million) in a rare private placement Treasury bond auction this week, against a target of 1.5 trillion shillings, results of the auction showed on Thursday.



The private placement bond auction was the first since June 2022.



The bank typically sells government bonds monthly through open auctions, but in 2020 began selling some bonds using private placements where it invites only specific banks to take part in the offer as opposed to customary open auctions.



In this week&#8217;s auction, three-year, five-year, 10-year, 15-year and 20-year Treasury bonds were on offer and the central bank received bids worth 2.3 trillion shillings.



The debt notes are due to mature at various dates between 2026 and 2043.



Eight banks were invited to participate in the auction, including local units of global lenders Standard Bank, Standard Chartered, Citibank and Absa.



($1 = 3,830.0000 Ugandan shillings)



(Reporting by Elias Biryabarema; Editing by Bhargav Acharya and Mark Potter)

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East Africa

Kenya’s weather outlook ‘dire’ as cyclone nears, president says

World Bank suspends Tanzania tourism fund over abuse allegations

Ethiopia faces tough devaluation decision to secure IMF bailout

Ugandan foreign exchange reserves drop 12% due to debt payments

World Bank loans Ethiopia $1.72 bln for power, water supply expansion

Kenya to raise capital requirements for banks, central banker says

IMF ends Ethiopia visit, deal not yet secured

Kenya and Uganda resolve oil import row, Uganda says

Zambia’s debt-rework battle scars mar its Common Framework success

Commercial Bank of Ethiopia recovers $11 mln lost in system glitch

Zambia strikes preliminary deal on $3 bln international bond rework

Zambia bondholders begin formal talks on $3 billion debt rework proposal, sources say

‘Glitch’ at Ethiopia’s biggest bank sees customers withdraw millions that isn’t theirs

Bill Gates-backed startup confident it can unearth more buried treasure after a historic copper find

Tanzania switches on first turbine of hydro plant in World Heritage Site

Kenya to buy back over $1.4 bln of bond that had unnerved investors

Uganda’s central bank nets $339 mln in rare private placement debt auction

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