<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3435" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/KHRWUMTKIBJ67ODN3A5LCDNGMI.avif" alt="" class="wp-image-591376"/><figcaption class="wp-element-caption">Ethiopia&#8217;s Prime Minister Abiy Ahmed speaks during the opening of the 38th Ordinary Session of the Assembly of the Heads of State and Government of the African Union at the African Union Commission (AUC) headquarters in Addis Ababa, Ethiopia, February 15, 2025. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



MOGADISHU, Feb 27 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s Prime Minister Abiy Ahmed arrived in Somalia&#8217;s capital Mogadishu on Thursday to hold discussions with President Hassan Sheikh Mohamud, Somalia&#8217;s presidency said, following a thaw in icy relations.



The relationship soured in January 2024 when Ethiopia announced plans to lease a stretch of coastline in Somalia&#8217;s breakaway Somaliland region.



Ethiopia planned to build a naval base and commercial port in exchange for possible recognition of Somaliland&#8217;s independence.



Somalia accused Ethiopia of undermining its territorial integrity, threatened to eject its peacekeepers, and strengthened ties with Ethiopia&#8217;s arch foes Egypt and Eritrea.



Mogadishu airport was hit by at least one mortar shell shortly before Abiy&#8217;s plane landed on Thursday, despite all roads around the high security complex being closed, four local residents and media said.



The two countries agreed to resolve the dispute at talks mediated by Ankara in December, pledging to find commercial arrangements to allow landlocked Ethiopia &#8220;reliable, secure and sustainable access to and from the sea.&#8221;



They also agreed to begin technical negotiations by the end of February.



&#8220;This visit marks a significant step toward strengthening the diplomatic ties between Somalia and Ethiopia, as the two leaders are scheduled to engage in discussions on key bilateral and regional matters of mutual interest,&#8221; Somalia&#8217;s presidency posted on X.



The two men smiled as they shook hands on the airport tarmac, surrounded by people waving flags of the two neighbouring countries, according to photographs shared by the presidency.



Abiy&#8217;s trip comes a month after Mohamud visited Addis Ababa.



Somalia has been in the grip of a long-running insurgency by Islamist al-Shabaab militants who have been fighting to overthrow the fragile central government.



(Reporting by Feisal Omar; Writing by Hereward Holland; Editing by Ammu Kannampilly and Christina Fincher)

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Ethiopia’s Abiy visits Somalia for talks with President Mohamud

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4289" height="2998" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/BTPP7WMM2NKQNMPBCCJVN5CQ7A.avif" alt="" class="wp-image-591008"/><figcaption class="wp-element-caption">Members of the M23 rebel group ride on a pickup truck as they leave their position for patrols amid conflict between them and the Armed Forces of the Democratic Republic of the Congo (FARDC), in Goma, eastern Democratic Republic of the Congo, January 29, 2025. REUTERS/Stringer/File Photo</figcaption></figure>



NAIROBI, Feb 26 (Reuters)&nbsp;&#8211;&nbsp;International sanctions against Rwanda will reduce the incentive for Kinshasa to engage in peace talks with M23 rebels who have made lightning advances in eastern Congo this year, a proscribed Rwandan minister has said.



&#8220;As they push for sanctions against Rwanda, (Congo&#8217;s president), seeing that Rwanda is being targeted, will refuse to participate in any negotiations,&#8221; James Kabarebe, a Rwandan state minister for foreign affairs, said in a speech on Tuesday.



Rwanda-backed M23 rebels have seized eastern Congo&#8217;s two largest cities over the past month in a conflict that has displaced around half a million people since January.



Last Thursday, the United States Treasury imposed sanctions on Kabarebe for his alleged role as a government liaison to the M23. He didn&#8217;t specifically refer to the sanctions against himself in his comments.



Britain said on Tuesday it would pause some bilateral aid to Rwanda and impose other diplomatic sanctions on Kigali until there was significant progress in ending hostilities and a withdrawal of all Rwandan troops from Congolese territory, estimated by the United Nations to number several thousand.



The European Union said on Monday it would review its agreement with Rwanda for strategic minerals over Kigali&#8217;s links with the rebels.



Rwanda denies providing arms and troops to M23, and says its forces are acting in self defence against the Congolese army and militias hostile to Kigali.



In his speech, Kabarebe also accused Congo&#8217;s President Felix Tshisekedi, who has refused to negotiate with M23, of offering the international community minerals in exchange for sanctions.



Congo&#8217;s presidential spokesperson Tina Salama did not immediately respond to Reuters&#8217; request for comment, but previously said that Tshisekedi has invited U.S. companies to purchase strategic raw materials directly from Kinshasa, rather than materials &#8220;smuggled&#8221; through Rwanda.



African leaders on Monday appointed the former Presidents of Kenya and Nigeria and the ex-Prime Minister of Ethiopia to mediate the ongoing peace process.



A close ally of President Paul Kagame for decades, Kabarebe has played a central part in a string of Rwanda-backed insurgencies in Congo since the mid 1990s.



The region is already reeling from a humanitarian crisis, and the latest conflict has fanned fears of a regional war like those that killed millions between 1996 and 2003, most from hunger and disease.



Eastern and Southern African countries are looking into the possibility of deploying African Union (AU) troops to secure areas controlled by M23, alongside a beefed up U.N. peacekeeping mission.



(Writing by Hereward Holland; Editing by Ammu Kannampilly and Sharon Singleton)

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Rwanda sanctions will undermine push for Congo peace talks, proscribed minister says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1.jpg" alt="" class="wp-image-590240" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1.jpg 640w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/02/https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A-1-135x90.jpg 135w" sizes="auto, (max-width: 640px) 100vw, 640px" /><figcaption class="wp-element-caption">Roasted coffee beans are seen on display in Bogota, Colombia June 5, 2019. REUTERS/Luisa Gonzalez</figcaption></figure>



KAMPALA, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;The value of Uganda&#8217;s coffee exports surged 83.4% in January, compared to the same month a year ago, boosted by high global prices of the commodity, the agriculture ministry said.



Uganda is Africa&#8217;s largest exporter of coffee, followed by Ethiopia.



The east African country shipped 550,341 60-kilogram bags of coffee worth $156.5 million, 83.4% higher than the value of volumes shipped in the same month last year, the ministry of agriculture, animal industry and fisheries (MAAIF) said in a report seen by Reuters on Monday.



In terms of quantity, January&#8217;s shipments were 14.4% higher than the volumes exported a year ago.



Global coffee prices have been driven higher by dry weather conditions in Brazil and Vietnam, MAAIF said.



(Reporting by Elias Biryabarema; Editing by Hereward Holland and David Evans)

https___cloudfront-us-east-2.images.arcpublishing.com_reuters_YRJ4HC4PYZMV5B3TRRZSVHPF7A

Value of Uganda’s coffee exports surge 83% in January on the year

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="427" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/ZVW7NKNERBPHZKW4NK6ZSJEQLM.avif" alt="" class="wp-image-590235"/><figcaption class="wp-element-caption">A general view of the cityscape of Addis Ababa, Ethiopia, April 24, 2024. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



ADDIS ABABA, Feb 24 (Reuters)&nbsp;&#8211;&nbsp;Ethiopia&#8217;s&nbsp;central bank said on Monday it was conducting a foreign exchange auction for $60 million, with the sale open to all banks.



In July 2024, Ethiopia&#8217;s central bank removed restrictions on the foreign currency market, a crucial step towards securing funding from the International Monetary Fund and making progress on a long-delayed debt overhaul.



The National Bank of Ethiopia said the auction was being held to offset what could become excessive money supply growth.



In December 2023, Ethiopia which is struggling with high inflation and chronic foreign currency shortages, became the third economy on the African continent in as many years to default on its debt.



(Reporting by Dawit Endeshaw; Writing by George Obulutsa; Editing by Andrew Cawthorne and Susan Fenton)

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Ethiopia central bank holds $60 million foreign exchange auction

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1005" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/4AYCAYRYPFC5LO7RDLWAFNT4NM.avif" alt="" class="wp-image-588214"/><figcaption class="wp-element-caption">Rwandan security officers escort Congolese forces who surrendered, in Gisenyi, Rwanda, January 27, 2025. REUTERS/Jean Bizimana</figcaption></figure>



NAIROBI, Feb 19 (Reuters) &#8211; Rwanda&#8217;s sole international government bond fell by the biggest margin since August 2022 on Wednesday, as worries over fighting in the neighbouring Democratic Republic of the Congo, where Rwanda backs M23 rebels, intensified.



The 1.7 cent fall in the 2031-maturing bond left it at 79 cents, its lowest level since January 2024.



Late last month, the M23 rebels seized Goma, the largest city in eastern Congo, and fighting has since spread to other areas as the group tries to capture more territory.



United Nations human rights office also accused M23 rebels on Tuesday of executing children in eastern Congo during their advance.



Rwanda&#8217;s government in Kigali meanwhile said it was suspending development co-operation with Belgium, accusing Brussels of working jointly with the Congo to &#8220;sabotage&#8221; Rwanda&#8217;s access to development finance, including from multilateral institutions.



This M23 advance is the gravest escalation in more than a decade of the long-running conflict in eastern Congo, rooted in the spillover of Rwanda&#8217;s 1994 genocide into Congo and the struggle for control of Congo&#8217;s vast minerals resources.



Rwanda rejects allegations from Congo, the UN and Western powers that it supports M23 with arms and troops. It says it is defending itself against the threat from a Hutu militia, which it says is fighting with the Congolese military.



The conflict risks driving up Rwanda&#8217;s debt costs and weakening its currency, credit ratings agency S&amp;P said earlier this month.



(Reporting by Duncan Miriri; editing by Marc Jones)

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Rwanda’s international bond plunges as concerns over M23 rebels mount

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/MTPYEYSKNVOEZBDRFXJLTR5D3Q.avif" alt="" class="wp-image-587420"/><figcaption class="wp-element-caption">A general view of the skyline of Addis Ababa, Ethiopia November 3, 2021. REUTERS/Tiksa Negeri/File Photo</figcaption></figure>



NAIROBI, Feb 17 (Reuters)&nbsp;&#8211;&nbsp;Investors holding Ethiopia&#8217;s defaulted bond said on Monday there are &#8220;significant flaws&#8221; in the latest International Monetary Fund report that suggests the country is facing a solvency issue, a scenario that would require them to grant debt relief.



The salvo is the latest battle between the creditor committee, the IMF and Ethiopia over whether the country is facing a liquidity issue, meaning it might only need more time to pay, or a solvency issue, which could require debt writedowns known as haircuts.



&#8220;The Committee disagrees with the conclusions reached by the IMF in the staff report,&#8221; it said in a statement, adding that the IMF analysis &#8220;incorporates export projections and reserve adequacy targets that do not align with the Committee&#8217;s assessment of Ethiopia&#8217;s economic fundamentals&#8221;.



It said it had issued a paper detailing &#8220;significant flaws in the recently published IMF staff report&#8230; which it believes are artificially creating a solvency issue for Ethiopia&#8221;.



Neither the IMF nor the Ethiopian government immediately responded to requests for comment.



Ethiopia&#8217;s government has said bondholder losses are unavoidable, and last year proposed an 18% haircut.



The committee letter said the IMF&#8217;s latest staff report &#8220;fails to acknowledge significant improvements in Ethiopia&#8217;s macroeconomic situation,&#8221; and that it had significantly undervalued increases in key exports, including gold and coffee.



The committee, which represents investors who account for more than 40% of the holdings of Ethiopia&#8217;s $1 billion bond, said it reserved the right to take action, including potential proceedings in English courts, to enforce Ethiopia&#8217;s obligations to repay the outstanding debt.



(Reporting by Duncan Miriri; Editing by Libby George and Helen Popper)

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Ethiopia bondholders say IMF report contains ‘significant flaws’

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3333" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/6EO3HGEH6FKYPNIVMCWIHMJTMA.avif" alt="" class="wp-image-586313"/><figcaption class="wp-element-caption">Congolese people displaced following recent clashes between the M23 rebels and the Armed Forces of the Democratic Republic of the Congo (FARDC), leave the camps and return to their homes after the M23 rebels instructed them to vacate the camps in the outskirts of Goma, Democratic Republic of the Congo February 12, 2025. REUTERS/Stringer/File Photo</figcaption></figure>



NAIROBI, Feb 14 (Reuters)&nbsp;&#8211;&nbsp;Congo&#8217;s war tops the agenda at this weekend&#8217;s African Union summit but chances of diplomatic progress are slim as rebels advance and Rwanda&#8217;s leader, accused of backing them, has vowed to &#8220;spit in the face&#8221; of anyone punishing him for his actions.



The advance of M23 rebels through eastern Congo has triggered fears that Africa&#8217;s Great Lakes region risks slipping back into a broader war sucking in neighbouring armies, reminiscent of conflicts in the 1990s and 2000s that killed millions.



The AU summit in Addis Ababa on Saturday and Sunday is meant to be the next stage in regional efforts to halt the conflict. But rebels ignored calls for peace at a summit last week and have pushed towards Bukavu, some 200 km south of Goma, eastern Congo&#8217;s biggest city which was seized last month.



&#8220;I think this is the most serious crisis in Africa right now. It is time for the African Union to show its strength,&#8221; Stephanie Wolters, senior research fellow at the South African Institute of International Affairs, told Reuters.



World leaders have called for Rwanda to cut its support for the M23 fighters, which U.N. experts say includes troops and advanced military hardware.



The United States has warned of possible sanctions against Rwandan and Congolese officials. The European Parliament on Thursday urged the European Union to freeze direct budget support for Rwanda.



But President Paul Kagame remains defiant.



Rwanda has repeatedly denied backing M23 but says it will do everything necessary to defend itself from Hutu militants in Congo that Kigali, and M23, says remain bent killing Tutsis and attacking Rwanda 30 years after the 1994 genocide.



&#8216;EXISTENTIAL THREATS&#8217;



M23 is the latest in a string of Rwanda-backed rebel movements in Congo to cite this threat as they take up arms in the eastern borderlands, which are far from the capital, Kinshasa, and rich in minerals.



&#8220;We have faced existential threats for years. We had the worst tragedy in &#8217;94. You really come to me and start threatening &#8230; sanctions because I am defending myself? And you think I have any iota of fear for that?&#8221; Kagame told France&#8217;s Jeune Afrique magazine this week.



He recalled an episode from the genocide, when he said a woman about to be killed was told to choose how she would prefer to be killed. Instead, he said, she spat in the face of her assailants.



&#8220;You can imagine how much I am going to spit in the face of anyone who tells me to choose between which death I should face,&#8221; he said.



Congo&#8217;s President Felix Tshisekedi travelled to Germany on Thursday to take part in the Munich Security Conference, where he would seek greater international involvement resolving Congo&#8217;s crisis, his office said in a post on X.



He is due to continue to the AU summit afterwards, a source in the presidency said.



M23 rebels last seized Goma in 2012. It only briefly held the city before withdrawing under intense international pressure, threats of aid cuts to Rwanda and an aggressive African force defeated the rebels.



This time, though, experts say there is more reluctance to take on Rwanda and the multitude of other global crises is eating into world leaders&#8217; attention.



The M23 advance south has been slowed by Congolese forces backed by thousands of Burundian troops, which have also deployed into Congo. Tensions between Burundi and Rwanda run high, adding to regional tensions.



(Reporting by David Lewis in Nairobi and Sonia Rolley in Paris; Editing by Bate Felix and Alison Williams)

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AU summit unlikely to make progress on Congo in face of Rwanda defiance

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="5000" height="3150" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/S6HQ7VEU4ROAHDG56OUF4DYLEI.avif" alt="" class="wp-image-585945"/><figcaption class="wp-element-caption">A general view shows a street in Kigali, Rwanda, April 26, 2024. REUTERS/Jean Bizimana/File Photo</figcaption></figure>



KIGALI, Feb 13 (Reuters) &#8211; Rwanda&#8217;s central bank kept its key interest rate unchanged at 6.5% for the second monetary policy meeting in a row, saying that despite a recent pickup in inflation it expected it to remain within its target band.



Annual inflation rose to 7.4% in January, approaching the top of the National Bank of Rwanda&#8217;s 2%-8% target range.



The rise in inflation in recent months was caused by unfavourable weather conditions that meant a delay in the harvest, compared to a bumper harvest a year earlier, Governor John Rwangombwa told a press conference.



The bank has raised its average inflation forecast for 2025 to around 6.5%, up from 5.8%, and sees it at 4.1% in the following year.



&#8220;Though there are slight pressures on inflation, (it) remains within the band, and we are confident that at this rate, 6.5%, we&#8217;ll be able to maintain inflation within the policy band,&#8221; Rwangombwa said.



&#8220;The risk we always highlight is these projections are based on normal weather conditions and normal agriculture performance. But also we see geopolitical tensions, globally, in the region, so this doesn&#8217;t take into consideration any effect from these tensions.&#8221;



The East African country&#8217;s economy was likely to have grown last year more than the 8.3% projected in November, the bank&#8217;s chief economist Thierry Kalisa told reporters.



This year&#8217;s growth was projected at 7% in November, but the bank is currently revising that forecast, Kalisa said.



(Reporting by Philbert Girinema; Writing by Hereward Holland; Editing by Alexander Winning and Ros Russell)

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Rwanda central bank holds key rate despite pickup in inflation

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1080" height="679" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/H2VQBBJEVJMTZK7RAQSVTQ2MGE.avif" alt="" class="wp-image-585860"/><figcaption class="wp-element-caption">A delegate walks past African Union (AU) member states national flags during the opening of the 37th Ordinary Session of the Assembly of the African Union at the African Union Headquarters, in Addis Ababa, Ethiopia February 17, 2024. REUTERS/Stringer/File Photo</figcaption></figure>



Feb 13 (Reuters)&nbsp;&#8211;&nbsp;African leaders meeting in Ethiopia this weekend are to launch a new push for slavery and colonial reparations, but can expect to be stonewalled by former colonial powers, most of which have ruled out making amends for historical wrongs.



While the issue of reparations has gained momentum worldwide, so has the backlash. U.S. President Donald Trump has said he &#8220;doesn&#8217;t see it (reparations) happening&#8221; and many of Europe&#8217;s leaders have opposed even talking about it.



At the African Union summit in Addis Ababa, leaders plan to shape a &#8220;unified vision&#8221; of what reparations may look like, from financial compensation and formal acknowledgement of past wrongs to policy reforms.



&#8220;Reparations is the hot topic in Addis Ababa,&#8221; the AU&#8217;s economic, social and cultural council, ECOSOCC, wrote on X.



From the 15th to the 19th century, at least 12.5 million Africans were kidnapped, forcibly transported by mostly European merchants and sold into slavery.



The debate on reparations needs to address the legacy of colonialism and slavery today, from racism to the economic disparities between Africa and wealthy Western nations, said ECOSOCC, which has been advising member states on the issue.



&#8220;It is increasingly becoming impossible to not acknowledge the damage caused by slavery and colonialism,&#8221; said Zimbabwean lawyer and reparations expert, Alfred Mavedzenge.



The continent&#8217;s debt crisis can be traced back to African nations being saddled with heavy debts upon independence. Climate change can also be linked to colonialism: Africa is responsible for just a fraction of carbon emissions, but its fragile ecosystems have borne the brunt of global warming.



<h2 class="wp-block-heading" id="h-more-than-just-compensation">&#8216;MORE THAN JUST COMPENSATION&#8217;</h2>



Much of the debate around reparations, particularly in former colonial powers such as Britain and Portugal, has focused on financial payments but advocates say making amends for the past can take many forms.



&#8220;Reparations are more than just compensation,&#8221; said ECOSOCC&#8217;s head of secretariat William Carew. &#8220;It is about&#8230; ensuring future generations inherit a world that acknowledges their past and propels them towards a brighter future.&#8221;



The AU said in a statement that reparations for Africa could entail land restitution in countries where land was taken from indigenous populations to the return of cultural artefacts.



It also highlighted the need for changes in policies that perpetuate inequalities and for international bodies, such as the United Nations, to hold former colonial powers to account.



&#8220;This might involve diplomatic pressure or legal actions at international courts,&#8221; said the AU.



In 2023, the AU joined forces with the Caribbean community CARICOM to demand reparations. CARICOM has its own reparation plan, which, among other demands, calls for technology transfers and investments to tackle health crises and illiteracy.



<h2 class="wp-block-heading" id="h-right-wing-backlash">RIGHT-WING BACKLASH</h2>



But 30 years since the AU&#8217;s forerunner, the Organisation of African Unity, issued a declaration demanding reparations, there has been little progress.



Jose Maria Neves, president of the African island nation of Cape Verde, has said right-wing populism and its impact on moderate politics has made it difficult to hold a serious debate over the issue.



In Portugal, which enslaved more Africans than any other nation, far-right party Chega proposed charging the president with treason for suggesting there might be a need for reparations.



In Britain, right-wing populist Nigel Farage said Prime Minister Keir Starmer would be &#8220;weak&#8221; if he engaged in talks on the issue. In France, where the far-right is on the rise, President Emmanuel Macron has ruled out reparations, calling for &#8220;reconciliation&#8221; instead.



&#8220;My greatest concern is that there will just be a conversation at this (AU) summit but the resolutions will not be implemented,&#8221; Mavedzenge said.



(Reporting by Catarina Demony in London; Editing by Ros Russell)

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African leaders to push for slavery reparations despite resistance

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1200" height="628" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/FYWWSVJ7GZPUZHCREMBLZUUK6I.avif" alt="" class="wp-image-585487"/><figcaption class="wp-element-caption">A view of the Bank of Zambia in Lusaka, Zambia February 23, 2024. REUTERS/Namukolo Siyumbwa/File Photo</figcaption></figure>



LUSAKA, Feb 12 (Reuters)&nbsp;&#8211;&nbsp;Zambia&#8217;s central bank raised its main lending rate for the second meeting in a row to try to bring down inflation, which climbed last year because of the worst regional drought in living memory.



The 50-basis-point hike in the Bank of Zambia&#8217;s Monetary Policy Rate took it to 14.50%, its highest level since 2016.



Annual inflation stood at a more than three-year high of 16.7% in January, well above the central bank&#8217;s 6%-8% target range.



Bank of Zambia Governor Denny Kalyalya told reporters the bank needed to act to &#8220;adjust that feeling that inflation will continue to go up&#8221;.



Inflation is projected to average 14.6% this year, whereas at the central bank&#8217;s last monetary policy meeting in November the forecast was for average inflation of 13.9%.



Zambia&#8217;s economic growth slowed in 2024 because of the effects of the severe drought, but it is expected to rebound this year.



A presentation by Kalyalya gave a 6.6% economic growth forecast for 2025, the same rate targeted in the finance minister&#8217;s September budget speech.



The El Nino-induced drought wiped out crops and caused hydroelectric power generation on the Kariba dam, Zambia&#8217;s biggest power source, to plummet last year, spurring food and power imports.



Recent rains have since improved the outlook for agriculture and power generation.



A major copper producer, Zambia also hopes its mining sector will contribute to economic recovery.



(Reporting by Chris Mfula; Writing by Sfundo Parakozov; Editing by Alexander Winning and Barbara Lewis)

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Zambia central bank raises key rate again as inflation above target

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4595" height="3063" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/TSXEJAVPAZO77C5HSGIMQIYINE.avif" alt="" class="wp-image-584746"/><figcaption class="wp-element-caption">Michael Atingi-Ego speaks during the ReutersNEXT Newsmaker event in New York City, New York, U.S., November 9, 2023. REUTERS/Brendan McDermid/File Photo</figcaption></figure>



KAMPALA, Feb 10 (Reuters)&nbsp;&#8211;&nbsp;Uganda has named Michael Atingi-Ego its central bank governor, President Yoweri Museveni&#8217;s spokesperson said on Monday.



Atingi-Ego previously worked for the central bank in a senior position, then left and returned in 2020 as deputy governor.



He has been the acting head of the bank since the death of long-serving former governor, Emmanuel Tumusiime-Mutebile, in 2022.



Sandor Walusimbi, President Yoweri Museveni&#8217;s spokesperson, confirmed the appointment of Atingi-Ego.



The bank has appointed Augustus Nuwagaba, an economist at Uganda&#8217;s largest public university, Makerere, as Atingi-Ego&#8217;s deputy, NTV Uganda, Daily Monitor newspaper and Uganda Broadcasting Corporation reported.



(Reporting by Elias Biryabarema; Editing by George Obulutsa and Aidan Lewis)

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Uganda names new central bank governor, president’s spokesperson says

<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="720" height="425" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg" alt="" class="wp-image-498541" style="width:840px;height:auto" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24.jpg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-300x177.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ANCK25OQIFMHTJYACOM5XU5T24-152x90.jpg 152w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Kenya shilling coins and notes are pictured inside a cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Feb 7 (Reuters) &#8211; Kenya&#8217;s shilling strengthened against the dollar on Friday, London Stock Exchange Group data showed.



At 0715 GMT, the shilling was quoted at 128.25/129.25, compared with Thursday&#8217;s closing rate of 129.00/130.00.



(Reporting by George Obulutsa; Editing by Elisha Bala-Gbogbo)

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Kenyan shilling firms versus dollar, LSEG data shows

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4975" height="3478" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/FIA5UV2YSBO23I6DVT5DI7HBSQ.avif" alt="" class="wp-image-583241"/><figcaption class="wp-element-caption">Vedanta Base Metals CEO Chris Griffith speaks to Reuters at the Investing in African Mining Indaba 2024 conference in Cape Town, South Africa February 7, 2024. REUTERS/Esa Alexander/File Photo</figcaption></figure>



CAPE TOWN, Feb 6 (Reuters) &#8211; Vedanta Resources is trying to raise around $1 billion in debt financing to fund development of its Konkola Copper Mines (KCM) in Zambia, Chris Griffith, head of the company&#8217;s base metals unit, said.



The Indian company, which owns 80% of KCM, said last year it planned to sell at least 30% of its holding in the copper mines.



But Griffith said selling a stake looked less likely.



&#8220;We are in a much higher likelihood that we can raise the funds from a range of financing options,&#8221; Griffith told Reuters on the sidelines of the Mining Indaba conference in Cape Town.



&#8220;We own 80% of the business and clearly we&#8217;d prefer to continue owning 80% of the business.&#8221;



Vedanta, owned by Indian billionaire Anil Agarwal, is weighing various debt fund raising options, Griffith said without specifying details.



It wants the $1 billion in funding to boost copper output at KCM to about 300,000 metric tons per year over the next five years.



Vedanta regained control of the assets in 2024 after a five-year tussle to recover the copper mines and smelter that the government of former Zambian president Edgar Lungu had seized. The former administration accused Vedanta of failing to invest to expand copper production.



The Zambian government owns the remaining 20% stake in KCM through state investment firm ZCCM-IH.



United Arab Emirates firm International Resources Holding last year withdrew an offer to buy Vedanta&#8217;s 51% stake in the copper mines, citing differences in valuation of the assets.



Since then, Vedanta&#8217;s debt position has improved after it refinanced its bonds and this might help the company to raise more cash internally alongside external debt options, Griffith said.



He said it had secured short-term financing to pay outstanding debts.



(Reporting by Felix Njini in Cape Town; editing by Barbara Lewis)

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Vedanta aims to raise $1 bln via debt to fund Zambian copper mines

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3654" height="2092" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/34DG5BPJTVPCBBGSRYAMLZGNRA.avif" alt="" class="wp-image-583202"/><figcaption class="wp-element-caption">A general view shows the capital city of Kampala in Uganda, July 4, 2016. REUTERS/James Akena/File Photo</figcaption></figure>



KAMPALA, Feb 6 (Reuters)&nbsp;&#8211;&nbsp;Uganda&#8217;s central bank held its key lending rate for the second meeting in a row on Thursday, saying near-term inflation appeared well-contained but that the outlook was more uncertain than normal given external risks.



The Central Bank Rate was kept at 9.75%.



Annual core inflation, which the Bank of Uganda aims to keep at about 5%, rose to 4.2% in January, up from 3.9% the previous month.



The bank forecasts core inflation of between 4% and 5% this year, though there are risks from geopolitics, extreme weather and a strong U.S. dollar, Bank of Uganda deputy governor Michael Atingi-Ego told a news conference.



&#8220;Uncertainties from global developments could cause inflation to rise faster and disrupt economic activity. This situation necessitates a cautious approach to monetary policy,&#8221; Atingi-Ego said.



He said the bank&#8217;s projections for economic growth remained unchanged from its December policy meeting, at between 6%-6.5% in the financial year to June 2025, and 7% for the following years, supported by a stable macro-economic environment and foreign direct investment (FDI) towards the extractive industries.



Uganda expects to start pumping crude oil commercially this year, which has helped bolster FDI.



Responding to questions from reporters about the impact of U.S. President Donald Trump&#8217;s trade policies, Atingi-Ego said tariffs on countries like China were likely to spur price rises in African countries.



&#8220;It will affect the global inflation, and Uganda of course is not in an island. We will end up importing some of that inflation,&#8221; he said. &#8220;That means we will have to see how to tighten monetary policy going forward.&#8221;



(Reporting by Elias Biryabarema; Writing by Hereward Holland; Editing by Alexander Winning, William Maclean)

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Uganda holds key rate, says near-term inflation looks well-contained

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3834" height="2402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/5OMVZV4VZBNBNI3UP6TQZXKT2M.avif" alt="" class="wp-image-583183"/><figcaption class="wp-element-caption">A general view shows people walking past the Central Bank of Kenya headquarters building along Haile Selassie avenue in Nairobi, Kenya October 9, 2017. REUTERS/Thomas Mukoya/File Photo</figcaption></figure>



NAIROBI, Feb 6 (Reuters) &#8211; Kenya&#8217;s central bank governor said on Thursday that bank officials did not see much effect on the exchange rate from U.S. President Donald Trump&#8217;s foreign aid freeze.



In late January, Trump placed a pause on most foreign development assistance pending assessments of efficiencies and consistency with his foreign policy.



Central Bank Governor Kamau Thugge cited strong remittance inflows among reasons why Kenya&#8217;s foreign exchange reserves were healthy at roughly $9 billion, or more than four months of import cover.



&#8220;We don&#8217;t see much impact on the exchange rate from the freeze on aid. We see our foreign exchange reserves remaining fairly strong, exchange rate stable,&#8221; he told a news conference.



On Wednesday, Finance Minister John Mbadi said Trump&#8217;s move to freeze aid could hit Kenya hard, as it lacks the fiscal space to replace the funding, adding that he hoped the United States would reconsider its decision.



Kenya&#8217;s shilling currency is broadly unchanged year-to-date against the dollar.



It closed 2024 up about 21% after a bond buyback eased concerns that the government could default.



On Wednesday, the central bank cut its main interest rate for the fourth meeting in a row, saying it wanted to do more to support lending and boost economic growth.



The Central Bank Rate was lowered by 50 basis points to 10.75%, in line with the forecast of a Reuters poll of four economists.



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

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Kenya central bank sees minimal effect on shilling from Trump aid freeze

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UGANDA-SHILING.jpg" alt="" class="wp-image-545991" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UGANDA-SHILING.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UGANDA-SHILING-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UGANDA-SHILING-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/10/UGANDA-SHILING-768x512.jpg 768w" sizes="auto, (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, Feb 6 (Reuters) &#8211; The Ugandan shilling was flat on Thursday ahead of a central bank rate decision, LSEG data showed.



At 0801 GMT commercial banks quoted the shilling at 3,675/3,685, the same level as Wednesday&#8217;s close.



(Reporting by Elias Biryabarema; Editing by George Obulutsa)

UGANDA SHILING

Ugandan shilling flat ahead of central bank rate decision

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="640" height="418" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/01/LYEEWJTJKRPK3GJPCKWFP3EK7E.avif" alt="" class="wp-image-573641"/><figcaption class="wp-element-caption">A teller counts Kenya shilling notes inside the cashier&#8217;s booth at a forex exchange bureau in Kenya&#8217;s capital Nairobi, April 20, 2016. REUTERS/Thomas Mukoya/File photo</figcaption></figure>



NAIROBI, Feb 6 (Reuters) &#8211; Kenya&#8217;s shilling strengthened slightly on Thursday, and traders said they expected it to gain further ground in the days ahead, helped by dollar inflows from investors buying government bonds.



At 0705 GMT, commercial banks quoted the shilling at 128.80/129.80 per dollar, compared with Wednesday&#8217;s closing rate of 129.00/130.00.



(Reporting by George Obulutsa; Editing by Alexander Winning)

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East Africa

Ethiopia’s Abiy visits Somalia for talks with President Mohamud

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Uganda names new central bank governor, president’s spokesperson says

Kenyan shilling firms versus dollar, LSEG data shows

Vedanta aims to raise $1 bln via debt to fund Zambian copper mines

Uganda holds key rate, says near-term inflation looks well-contained

Kenya central bank sees minimal effect on shilling from Trump aid freeze

Ugandan shilling flat ahead of central bank rate decision

Kenyan shilling firms slightly, traders see more gains ahead

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