VenturesNow

Kenya extends oil supply contract with three Gulf companies

Published

1 year ago

September 19, 2023

Kenya’s energy regulator says it has extended an oil supply deal with three Gulf-based companies designed to manage demand for dollars.

The agreement, which replaced an open tender system in which local businesses sought to import oil each month, was inked with Saudi Aramco, Abu Dhabi National Oil Company (ADNOC.UL), and Emirates National Oil Company in March.

According to the head of the Energy and Petroleum Regulatory Authority (EPRA), Daniel Kiptoo, “There was an extension up to December 2024 so this is basically arising out of negotiations that have been happening to drive down the freight and the premium (costs).”

He defended the contract by saying that it had reduced the price of shipping oil to Kenya and the premium it paid to suppliers.

A senior foreign exchange trader at a commercial bank said, “It is still not lost on us that it is a stop-gap measure, whichever way you look at it.”

Also, it offers 180-day credit terms, allowing the nation to accumulate funds over time rather than needing to pay for imports with roughly $500 million per month.

There are recent concerns regarding the oil import agreement. It has come under scrutiny from government critics who argue that it has contributed to the surge in retail prices of petrol. Currently, a litre of petrol is selling for 211 shillings ($1.43), a significant increase from 160 shillings a year ago. Additionally, the government doubled the tax on fuel in July, further exacerbating the situation.

Although the rate of decline has eased recently, the Kenyan shilling has continued to face constant pressure from the dollar, confounding President William Ruto’s April forecast that it would strengthen noticeably.

Officials from the government and lawmakers from the ruling party have defended the president from the criticism by claiming that the nation was helpless against the rising oil costs on the world market.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”