Africa Briefs
Zambia's debt weighing on central bank reserves
Debt servicing costs are putting pressure on Zambia's central bank reserves, Bank of Zambia governor Denny Kalyalya said during a monetary policy committee briefing yesterday, after announcing it would keep interest rates unchanged.
The International Monetary Fund has raised concerns over high levels of government debt in Africa's second largest copper producer, and rejected the state's borrowing plans last February, saying they risked making its debt load harder to sustain. – Nampa/Reuters
Kenya paves way for green bonds
Kenya set the stage for the country's first green bond with new rules yesterday, part of efforts to diversify its capital markets.
Like other African nations, Kenya needs to raise billions of US dollars to invest in infrastructure projects including roads, water and irrigation, railways and power generation.
So-called green bonds are fixed income securities that raise capital to help finance projects in renewable energy, energy-efficiency, green transport and wastewater treatment.
In January, HSBC said global green bond issuance is seen at US$140-$180 billion this year, from US$149.2 billion in 2019.
Nuru Mugambi, director of public affairs at the Kenya Bankers Association, said that there are two strong potential issuers from the banking sector with one at an advanced stage. But commercial lending rates capped in September 2016 at 4 percentage points above the central bank’s benchmark rate, may make it difficult for banks to price the products.
In 2018, finance ministry officials said that there was room to raise funding through green bonds for infrastructure projects, with an initial aim of about US$50 million. – Nampa/Reuters
Egypt issues billions in foreign currency bonds
Egypt has issued US$4 billion in dollar denominated bonds with maturities of five, 10 and 30 years in a sale that was five times oversubscribed, the finance ministry said yesterday.
The issue attracted US$21.5 billion in bids, the ministry said. The money raised will be used to finance the state budget, said deputy finance minister Ahmed Kouchouk.
Most bids were for longer maturity 10- and 30-year bonds, Kouchouk told Reuters, adding that he considered the yield on the bonds "very good" for Egypt, in line or lower than prevailing yields.
Egypt struggled through years of political and economic turmoil after its 2011 uprising. It has borrowed heavily from abroad since it began an economic reform programme backed by the International Monetary Fund (IMF) in late 2016. – Nampa/Reuters
Uganda's ruling party endorses Museveni
Uganda's ruling party has endorsed President Yoweri Museveni, 74, as its candidate in 2021 elections, which could see him seek a sixth term in office, a party resolution said yesterday.
The move comes after a bill was signed in December 2017 scrapping a presidential age limit of 75, which would have blocked Museveni from running again, sparking demonstrations and an outcry from the opposition which accused the president of seeking to rule for life.
Museveni, who seized power at the head of a rebel army in 1986, once said leaders who "overstayed" were the root of Africa's problems. However while running for a fifth term in 2016, he said it was not the right time for him to leave, as he still had work to do.
Museveni is the only president most Ugandans have known in a country where the median age is less than 16.
Young Ugandans have recently been energised by pop star-turned-MP Bobi Wine, who spearheaded protests against the age-limit amendment and has rapidly become a thorn in the government's side. – Nampa/AFP
Chinese smuggler sentenced to 15 years jail in Tanzania
A prominent Chinese businesswoman dubbed the "Ivory Queen" was sentenced to 15 years in prison by a Tanzanian court on Tuesday for smuggling the tusks of more than 350 elephants, weighing nearly 2 tonnes, to Asia.
Yang Feng Glan had been charged in October 2015 along with two Tanzanian men with smuggling 860 pieces of ivory between 2000 and 2004 worth 13 billion shillings (US$5.6 million). All three denied the charges.
Police sources said Yang, 69, had lived in Tanzania since the 1970s and was secretary-general of the Tanzania China-Africa Business Council. A Swahili-speaker, she also owns a popular Chinese restaurant in Dar es Salaam.
Tanzania's elephant population shrank from 110 000 in 2009 to little more than 43 000 in 2014, according to a 2015 census, with conservation groups blaming "industrial-scale" poaching.
Demand for ivory from Asian countries such as China and Vietnam, where it is turned into jewels and ornaments, has led to a surge in poaching across Africa. – Nampa/Reuters
Debt servicing costs are putting pressure on Zambia's central bank reserves, Bank of Zambia governor Denny Kalyalya said during a monetary policy committee briefing yesterday, after announcing it would keep interest rates unchanged.
The International Monetary Fund has raised concerns over high levels of government debt in Africa's second largest copper producer, and rejected the state's borrowing plans last February, saying they risked making its debt load harder to sustain. – Nampa/Reuters
Kenya paves way for green bonds
Kenya set the stage for the country's first green bond with new rules yesterday, part of efforts to diversify its capital markets.
Like other African nations, Kenya needs to raise billions of US dollars to invest in infrastructure projects including roads, water and irrigation, railways and power generation.
So-called green bonds are fixed income securities that raise capital to help finance projects in renewable energy, energy-efficiency, green transport and wastewater treatment.
In January, HSBC said global green bond issuance is seen at US$140-$180 billion this year, from US$149.2 billion in 2019.
Nuru Mugambi, director of public affairs at the Kenya Bankers Association, said that there are two strong potential issuers from the banking sector with one at an advanced stage. But commercial lending rates capped in September 2016 at 4 percentage points above the central bank’s benchmark rate, may make it difficult for banks to price the products.
In 2018, finance ministry officials said that there was room to raise funding through green bonds for infrastructure projects, with an initial aim of about US$50 million. – Nampa/Reuters
Egypt issues billions in foreign currency bonds
Egypt has issued US$4 billion in dollar denominated bonds with maturities of five, 10 and 30 years in a sale that was five times oversubscribed, the finance ministry said yesterday.
The issue attracted US$21.5 billion in bids, the ministry said. The money raised will be used to finance the state budget, said deputy finance minister Ahmed Kouchouk.
Most bids were for longer maturity 10- and 30-year bonds, Kouchouk told Reuters, adding that he considered the yield on the bonds "very good" for Egypt, in line or lower than prevailing yields.
Egypt struggled through years of political and economic turmoil after its 2011 uprising. It has borrowed heavily from abroad since it began an economic reform programme backed by the International Monetary Fund (IMF) in late 2016. – Nampa/Reuters
Uganda's ruling party endorses Museveni
Uganda's ruling party has endorsed President Yoweri Museveni, 74, as its candidate in 2021 elections, which could see him seek a sixth term in office, a party resolution said yesterday.
The move comes after a bill was signed in December 2017 scrapping a presidential age limit of 75, which would have blocked Museveni from running again, sparking demonstrations and an outcry from the opposition which accused the president of seeking to rule for life.
Museveni, who seized power at the head of a rebel army in 1986, once said leaders who "overstayed" were the root of Africa's problems. However while running for a fifth term in 2016, he said it was not the right time for him to leave, as he still had work to do.
Museveni is the only president most Ugandans have known in a country where the median age is less than 16.
Young Ugandans have recently been energised by pop star-turned-MP Bobi Wine, who spearheaded protests against the age-limit amendment and has rapidly become a thorn in the government's side. – Nampa/AFP
Chinese smuggler sentenced to 15 years jail in Tanzania
A prominent Chinese businesswoman dubbed the "Ivory Queen" was sentenced to 15 years in prison by a Tanzanian court on Tuesday for smuggling the tusks of more than 350 elephants, weighing nearly 2 tonnes, to Asia.
Yang Feng Glan had been charged in October 2015 along with two Tanzanian men with smuggling 860 pieces of ivory between 2000 and 2004 worth 13 billion shillings (US$5.6 million). All three denied the charges.
Police sources said Yang, 69, had lived in Tanzania since the 1970s and was secretary-general of the Tanzania China-Africa Business Council. A Swahili-speaker, she also owns a popular Chinese restaurant in Dar es Salaam.
Tanzania's elephant population shrank from 110 000 in 2009 to little more than 43 000 in 2014, according to a 2015 census, with conservation groups blaming "industrial-scale" poaching.
Demand for ivory from Asian countries such as China and Vietnam, where it is turned into jewels and ornaments, has led to a surge in poaching across Africa. – Nampa/Reuters
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