Connect with us

VenturesNow

Kenya, Tanzania to miss out on China’s debt-relief package. Here’s why

Published

on

Following the decision of the Chinese government to grant debt-waiver to 17 Africa countries last week, Kenya, Tanzania could miss out on the debt relief arrangement.

The countries will miss out as result of their lower-middle-income status even as the East African nations grapple with a growing debt burden.

The Chinese Foreign Minister, Wang Yi, made the announcement on Wednesday when he unveiled what was described as a “minor debt relief package” for 17 African countries by writing off 23 interest-free loans that were supposed to be due at the end of the last year.

The some-worth economic growth in the 2 countries which transited them from low-income to lower-middle-income status accounts for their exclusion from the waiver.

Kenya was left out of the deal as it is classified as lower-middle-income.

Tanzania also transitioned from low-income to lower-middle-income status in July 2020 after experiencing over 20 years of sustained economic growth.

Tanzania’s national poverty rate fell from 34.4 to 26.4 percent between 2007 and 2018 while the extreme poverty rate dropped from 12 to eight percent, according to the World Bank.

Kenya joined the league of the world’s lower-middle-income nations in 2014, having crossed the UN’ $1,045 gross domestic product per capita threshold after rebasing its economy.

According to the International Monetary Fund, China is now the largest official bilateral creditor in more than half of the Debt Service Suspension Initiative (DSSI) countries and will, therefore, play a key role in debt restructuring for those economies.

 

VenturesNow

Nigeria’s Access Bank acquires majority equity stake in Angolan financial firm, Finibanco

Published

on

One of Nigeria’s mega financial institutions, Access Bank, has penned an agreement to acquire 51% majority shareholding in Finibanco Angola S.A from Montepio Holding SGPS S.A, according the bank’s parent company, Access Holdings Plc.

The company which made the announcement late Tuesday, said it had purchased existing shares owned by Montepio, the holding company for Banco Montepio, a Portuguese commercial bank with over 20 branches and valued at $300 million in total assets.

The takeover of the Angolan bank sees an increase in the number of branches under Access Bank across Africa, making it the largest commercial bank in Africa by number of customers.

“Access Holdings Plc, trading as Access Corporation (‘the Corporation’) today announces that its wholly owned subsidiary, Access Bank Plc (the Bank) has entered into a binding agreement with Montepio Holding SGPS S.A (‘Montepio’) to acquire a 51 percent majority shareholding in Finibanco Angola S.A. (the Transaction),” the company said in the statement.

“The Transaction furthers the bank’s strategy to be Africa’s payment gateway to the world whilst working with other Africa-focused multilateral to provide robust and efficient payment platforms and ecosystems to serve the continent,” it added.

Access Bank has been very active on the African continent as it has so far acquired banks in other countries to expand leadrship position and extend its market trades.

The Nigerian financial institution had acquired Kenyan lender, Sidian Bank Ltd, African Banking Corporation of Botswana Limited, African Banking Corporation Zambia Limited, as well as Cavmont Bank in the last few years.

Continue Reading

VenturesNow

Petrol prices fall in South Africa, Libya but cost of diesel keeps flying

Published

on

Prices of petrol have fallen in South Africa and Libya but such cannot be said of diesel.

The government of government on Monday announced that the petrol pump price would decrease by up to 1.02 Rand a litre but the price of diesel would increase by up to 15 cents a litre from October 5.

In Sudan also, petrol prices seem to be obeying the law of gravity as the energy ministry said in a statement on Tuesday that price had fallen from 700 Sudanese pounds to 522 pounds ($0.9235) per litre.

There has been a fall in global oil prices recently which has caused a fall in domestic inflation to 7.6% in August in South Africa.

The ongoing war between Russia and Ukraine has had its knock-on effects on oil prices globally. Prices of diesel have almost tripled in most African countries.

In Nigeria for instance, industries like aviationtelecom operators have all struggled with the situation which has disrupted business operations.

Continue Reading

EDITOR’S PICK

VenturesNow5 hours ago

Nigeria’s Access Bank acquires majority equity stake in Angolan financial firm, Finibanco

One of Nigeria’s mega financial institutions, Access Bank, has penned an agreement to acquire 51% majority shareholding in Finibanco Angola...

Metro5 hours ago

Another Ugandan health worker dies from Ebola Virus

Another health worker in Uganda has died due to complications from the Ebola Virus Disease, making it the fourth recorded...

Metro6 hours ago

ECOWAS mediator, Mohamadou Issoufou, meets Burkina Faso new ruler, Captain Ibrahim Traore

The delegates of regional bloc, Economic Community of West African States have concluded mediation for Burkina Faso after recent unrest...

Metro8 hours ago

Three Bangladeshi UN peacekeepers killed in roadside bombing in Central African Republic

Three United Nations peacekeepers from Bangladesh have been killed roadside bomb while several others were seriously wounded in northwestern Central...

Metro8 hours ago

Liberian narcotics officials nab two more suspects in $100 million cocaine heist

Liberian narcotics officials, acting with top intelligence supplies by the United States security agencies arrested two foreign nationals suspected to...

Metro9 hours ago

Diplomatic row looms as gunmen kill German tourist near South African game park

A diplomatic row is currently brewing between South Africa and Germany after a German tourist was shot and killed by...

Tech1 day ago

South African calling app startup, Talk360, gets $7m seed funding following new backing

South Africa’s international calling app, Talk360, a Voice over Internet Protocol (VoIP) startup, has secured an additional US$3 million in...

VenturesNow1 day ago

Petrol prices fall in South Africa, Libya but cost of diesel keeps flying

Prices of petrol have fallen in South Africa and Libya but such cannot be said of diesel. The government of...

VenturesNow1 day ago

Zambia sets for first meeting with creditors amidst growing fiscal challenges

The finance ministry in Zambia said it is set for its first meeting with its creditors as the South African...

Politics1 day ago

Lesotho to hold parliamentary election as political instability rages

Southern African nation, Lesotho will hold its parliamentary elections on Friday despite political instability rocking the country following the inability...

Trending