VenturesNow

Mixed reactions trail introduction of new 5,000, 10,000 banknotes in Burundi

Published

11 months ago

July 5, 2023

The introduction of new 5,000 and 10,000 Burundian franc banknotes in Burundi has elicited mixed reactions from the public.

Under the new policy, the Bank of Burundi restricted cash deposits by individuals to a total of 10 million francs ($3,543) and by legal companies to a total of 30 million francs per day and per account.

There are reported cases of difficulty in exchanging old notes for new ones, particularly since the expiration of the deadline in June, but Faustin Ndikumana, an economist quoted by Reuters, argued that the policy was “beginning for the government to be able to start reforms, a necessary awareness to really break this cultural conservatism.”

“In Burundian culture … each person wants to keep his wealth at home”, Ndikumana added.

The current situation makes cash swaps difficult for unbanked persons. Chantal Mugisha, a merchant at the COTEBU market said, “When you don’t have a bank account, your old bills aren’t replaced. It’s impossible. They force us to open accounts at the bank when we have no means to add to an account.”

A Taxi driver in Bujumbura also lamented how he was unable to deposit his 170,000 Fbu (Burundian francs, about 54.8 euros) banknotes.

“I wanted to get gas from Gatumba and I heard that if I don’t have new bills they can’t give me gas. So I wonder how to deposit these notes in my boss’s bank account and I will be forced to stay in Bujumbura, I live inside the country,” the driver, Niyonkuru, said.

The Burundi outcry is similar to the cash scarcity in Nigeria earlier in the year when the central bank introduced new designs of the N200, N500, and N1,000 notes in an attempt to bring currency from outside the banking system into the banking system, thereby making monetary policy more effective in combating inflation.

Burundi’s central bank has promised to send representatives to remote places to help with the exchange.

VenturesNow

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

Published

10 hours ago

May 15, 2024

Ifeoluwa Dada

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.

VenturesNow

Uganda considers nuclear energy to meet increased electricity demand

Published

12 hours ago

May 15, 2024

Ifeoluwa Dada

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.