BUSINESS - The African Mirror

Sep

25

2020

Kenya’s WTO candidate says she will focus on climate change if selected

BUSINESS

DUNCAN MIRIRI KENYA’S candidate to become the next head of the World Trade Organisation pledged on Thursday to integrate climate change issues into the WTO agenda if selected. Amina Mohamed, who is the East African nation's sports minister, progressed to the second round of selection to become the next director-general of the WTO, along with four other candidates, on Friday. "How is it possible that the WTO does not discuss climate change?... WTO must be a part of the global conversation on climate change," she told an online media briefing from Geneva. Mohamed, who was involved in the development of…

Sep

25

2020

By The African Mirror

Kenya should renegotiate Chinese rail loan, parliamentary panel says

BUSINESS

DUNCAN MIRIRI KENYA should renegotiate the terms of a loan borrowed from China to build a modern railway line, parliament's transport committee said in a report, one of many African countries grappling with a pandemic-induced downturn and heavy debt. The East African nation raised its public debt ceiling last year. It took a loan from China to build the $3.2 billion standard gauge railway (SGR), which started operations in 2017. "The government should initiate the process of renegotiating the loan terms of the SGR with the lender due to the prevailing economic distress occasioned by the effects of COVID-19," the…

Sep

23

2020

By The African Mirror

Uganda’s public debt surges in coronavirus crisis, central bank says

BUSINESS

ELIAS BIRYABAREMA UGANDA’S public debt surged 20.5% in the 12 months to June as the east African country soaked up new credit to help deal with the economic impact of COVID-19, the central bank said on Tuesday. The new loans mostly came from international lenders including the World Bank and the International Monetary Fund (IMF). As of the end of June, Uganda's public debt was 56.5 trillion shillings ($15.33 billion), the Bank of Uganda (BoU) said in a report. About two thirds of the debt is held by external creditors, and the public debt is now 40.8% of GDP. The…

Sep

20

2020

By The African Mirror

Banks agree $545 million for Congo Republic economy

BUSINESS

A group of banks has agreed more than $545 million worth of funding to boost Congo Republic's long-suffering economy, officials have said. The oil-producer was hit by a sharp drop in crude prices in 2014, leaving it with debt of nearly $9.5 billion, much of it owed to China and Western oil traders and amounting to 85.5% of the Central African country's gross domestic product (GDP). The IMF agreed a three-year $449 million bailout last year, but the coronavirus pandemic is expected to cause an economic contraction of 9% in 2020, the government has said. A group of banks including…

Sep

20

2020

By The African Mirror

Two African women in final five for WTO leadership race

BUSINESS

EMMA FARGE THREE women, two of them from Africa, advanced to the second round of selection to become the next director-general of the World Trade Organization as the field was cut from eight to five, the Geneva-based body has announced. The WTO is looking for a new director-general to replace Brazilian Roberto Azevedo, who stepped down a year earlier than expected at the end of August. The 25-year-old trade body has never had a leader who is female or from Africa. The five to go through to the next round are Kenyan minister Amina Mohamed, former Nigerian Finance Minister Ngozi…

Sep

18

2020

By The African Mirror

South Sudan president replaces finance minister

BUSINESS

SOUTH Sudan President Salva Kiir has removed the country's finance minister Salvatore Garang from office, replacing him with Athian Ding Athian, state television has reported. Kiir, who did not give a reason for the change, also replaced the head of state-owned Nile Petroleum Corporation, Chol Deng Abel with Bol Ring Morwel, the broadcaster said. In another move, the president appointed a new acting head of South Sudan's tax collection agency. The oil producing nation, which has suffered five years of civil war since becoming independent in 2011, has not paid its workers for five months, a senior lawmaker told Reuters,…

Sep

16

2020

By The African Mirror

Kenya’s budget deficit likely to swell, finance minister says

BUSINESS

DUNCAN MIRIRI KENYA's budget deficit for this financial year could increase due to revenue shortfalls and coronavirus-related disruptions, the finance minister said on Tuesday. Ukur Yatani, who set the deficit at 7.5% of GDP when he presented the budget in June, did not say how far the gap was likely to expand, adding that they were developing a plan to cover it. "It might be just cutting on some expenditures, particularly the slow-moving projects, and… some state agencies are doing well so we are likely to get some substantial dividends," Yatani told Reuters. Revenue collection underperformed by 40 billion shillings…

Sep

14

2020

By The African Mirror

Ethiopian Prime Minister Abiy Ahmed introduces new currency notes

BUSINESS

THE government of Ethiopia has introduced new currency notes, with enhanced security features and other distinctive elements. The new currency notes replace the Birr 10, 50 and 100 notes while an additional Birr 200 note has also been unveiled. In making the announcement, Ethiopian Prime Minister Abiy Ahmed, said the current Birr 5 note remains unchanged and will be turned into coin format soon. Ahmed said the currency change is aimed at gathering currency circulating informally and outside of financial institutions; curb corruption and contraband and support financial institutions confront currency shortage. Ahmed said: "Most of the print work is…

Sep

14

2020

By The African Mirror

S-African economy to shrink by more than government’s 7% forecast in 2020

BUSINESS

SOUTH Africa’s economy will likely contract this year by more than the 7% previously forecast by the Treasury, Finance Minister Tito Mboweni said in an opinion piece published on Sunday. Gross domestic product shrunk by a record 51% in the second quarter, its fourth quarterly contraction in a row, as a strict lockdown to curb the spread of the coronavirus saw activity grind to a near-standstill. “The contraction in growth is larger than anticipated by the National Treasury and the SA Reserve Bank, which raises the risk that the actual GDP outcome for this year could be lower than previously…

Sep

12

2020

By The African Mirror

South African Airways needs state cash next week – administrators

BUSINESS

SOUTH African Airways needs short-term funding from the government by the end of next week for the state carrier’s business rescue process to continue, its administrators said on Thursday. “It is prudent to advise affected persons of the company’s dire financial position,” they said in a statement. “The existing funds which are available for operational expenditure …are near depletion.” The administrators took control of SAA in December after almost a decade of financial losses and published their restructuring plan for the airline in June following repeated delays and wrangling over its future. They plan to scale back the fleet and…