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IMF board approves $1 billion in funding for Kenya

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The same day it approved a $271 million Extended Credit Facility for Burundi, the International Monetary Fund (IMF) signed off on $1 billion in new funding for Kenya.

In a statement, the IMF said the board completed the fifth review under Kenya’s Extended Fund Facility and Extended Credit Facility and allowed the immediate disbursement of about $415.4 million.

Kenya is currently under financial stress and has had trouble accessing global credit markets due to last year’s sharp rise in Eurobond yields.

The government has recently launched various tax reforms to raise public funds. The IMF commended Kenya’s implementation of economic reforms despite facing the worst drought in decades, as well as a challenging external environment.

IMF Deputy Managing Director, Antoinette Sayeh said the new fund would enable Kenyan authorities to continue addressing such issues, maintain market confidence, foster growth, and advance continuing reforms.

According to her, the fiscal 2023–2024 budget for Kenya and the 2023 Finance Act are “crucial actions” that must be taken in order to support continued consolidation efforts, lessen debt risks, and safeguard social and development expenditures.

Kenya also recently obtained a $500 million 3-year and 5-year syndicated medium-term borrowing facility amid financial difficulties with the Standard Bank of South Africa, Standard Chartered Bank, Citibank, and its affiliates.

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Uganda discusses power line to South Sudan with China’s Sinohydro

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According to the president’s office, Uganda is in negotiations with Sinohydro Corporation Limited of China to build a $180 million power transmission line that would enable Uganda to export electricity to South Sudan, which is severely short on energy.

Ugandan President Yoweri Museveni received a group led by Vice President of Sinohydro Corporation Yang Yi Xin on Monday as part of the negotiations, according to a late-morning statement from Museveni’s office.

The project, according to the statement, will entail building a new substation and expanding two existing ones in addition to building a 138-kilometre high-voltage transmission line to provide power to South Sudan.

“We are very much willing to help develop this project with the required finance if needed,” Xin was quoted as telling the president.

The statement stated that Museveni endorsed Sinohydro’s proposal to carry out the project. Uganda and South Sudan inked a power sales deal in June of last year, enabling Uganda to sell electricity to South Sudan.

To enable Uganda to export electricity to South Sudan, the two nations inked a power sales deal in June of last year. The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on the River Nile in Northern Uganda that is meant to be the source for electricity exports to South Sudan.

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Uganda considers nuclear energy to meet increased electricity demand

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Uganda’s Ministry of Energy and Mineral Development announced on Tuesday that it was collaborating with the International Atomic Energy Agency (IAEA) to develop nuclear energy in the country as power demand rises.

Irene Batebe, permanent secretary of the ministry, stated that the government, with the assistance of the IAEA, is investigating and evaluating uranium deposits to ensure a sustainable supply of nuclear fuel for the projected nuclear power plants and research reactors.

“Uranium is the most widely used nuclear fuel material in nuclear power plants and research reactors and is required for Uganda’s nuclear power program.

“The planned nuclear power capacity will require about 4,000 tons of Uranium annually when fully operational. Thus, there is a need for sustainable sources of uranium,” she said at the opening of the nine-day meeting with the experts from the IAEA.

Batebe stated that the government is modifying the Atomic Energy Act of 2008 to tighten the legal framework for the exploration, mining, and processing of nuclear fuel reserves. She stated that even if completely exploited, the country’s electricity generation capacity from hydro, biomass, geothermal, and peat will fall short of Uganda Vision 2040 ambitions.

“To meet our development targets, nuclear energy among other sources must be integrated in the electricity generation mix,” she said.

The Cabinet approved the Energy Policy for Uganda, 2023 in April 2023, which envisions the long-term development of 52,481 MW of generation capacity to meet future demand, with nuclear power accounting for 24,000 MW.

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