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Kenya considering privatization of 35 state companies

Published

1 year ago

November 23, 2023

As plans continue towards revitalizing his country’s economy, Kenyan President, William Ruto has revealed that his administration is keen on privatizing 35 state companies.

Ruto also revealed that he was considering other 100 firms for privatization following the enactment of a law last month to cut down on bureaucracy.

Kenya last sold a portion of its state-owned company through an initial public offering (IPO) in 2008, when it bought 25% of the telecom company, Safaricom. A list of 26 companies, including banks, the Kenya Pipeline Company, and the Kenya Electricity Generating Company was approved by the cabinet in 2009, but no action has been taken as of yet.

“We have identified the first 35 companies that we are going to offer to investors,” Ruto told a meeting of African stock market officials in the capital, Nairobi.

Kenya’s public finances are under pressure due to the COVID-19 pandemic’s aftermath and the country’s frequent droughts brought on by climate change. The country is currently grappling with severe liquidity issues brought on by doubts about its capacity to obtain capital from financial markets prior to the $2 billion Eurobond maturing in June of next year.

Kenya is one of the African nations that is having financial troubles. The nation is presently going through financial difficulties, mostly as a result of having to pay off debt with almost half of its income.

Related Topics:Featured Kenya Privatization William Ruto

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Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.

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

Published

2 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.”