Connect with us

VenturesNow

Uganda announces plan to double domestic borrowing 

Published

on

Uganda’s finance ministry wants to exceed double of its level of domestic market borrowing to 6.8 trillion Ugandan shillings ($1.79 billion) in the 2023/24 financial year as it pushes to finance new spending needs.

The ministry claims the extra borrowing will likely put pressure on interest rates. Rising debt service costs, according to government officials, opposition politicians, and the central bank, have been eating away at the money needed to pay for basic necessities.

“Whereas we can not pre-determine the level of interest rates for domestic borrowing, it is certain that the rates will move upwards,” the ministry said.

“External loans are currently very expensive with interest rates of about 10% per annum on foreign currency. This makes the debt service cost of external loans unsustainable.”

Last week, the east African country said it would seek to borrow $150 million from China’s Export-Import Bank (Exim), following lending restrictions by the World Bank— which is traditionally a key source of cheap credit for the country— over its anti-homosexuality law.

Also, the government requested last week that parliament authorise an additional 3.6 trillion shillings in borrowing.

Finance Minister, Matia Kasaija, announced in a June budget speech that the government planned to issue bonds and treasury bills to raise 3.2 trillion Ugandan shillings from the domestic market.

VenturesNow

Nigerian centra bank’s N1trn OMO bills oversubscribed

Published

on

The Central Bank of Nigeria (CBN) has issued N1.053 trillion (680 million dollars) in short-term instruments in the recently concluded sale of government securities.

The sale is a component of CBN’s liquidity management exercise, according to a statement released on Sunday night by Mrs. Hakama Sidi, Acting Director of the Corporate Communications Department.

The apex bank’s N500 billion offer at the Open Market Operations (OMO) auction was oversubscribed, according to Sidi. Foreign investors accounted for 79% of all bids, or 530 million dollars. The auction was the first since last week’s Monetary Policy Committee (MPC) meeting, which was followed by a virtual meeting with international portfolio investors.

Sidi claims that Olayemi Cardoso, the governor of the CBN, utilised the two sessions to establish a comprehensive plan aimed at reducing inflation, stabilising the currency rate, and boosting trust in the banking sector and the overall economy.

The apex bank now enjoys a high degree of confidence from investors, she added, and the management of the CBN was hopeful that its monetary policy initiatives were starting to have a good impact.

Cardoso, in the meantime, emphasised in the investor meeting the prospects for a steady rise in the CBN’s foreign exchange reserves. He gave them assurances about increased market liquidity and the quick resolution of the outstanding backlog of legitimate FX transactions.

“The CBN is committed to supporting price stability by taking the necessary measures to increase liquidity in the foreign exchange markets sustainably.

“Our focus is on building a fully functioning market that allows smooth entry and exit for investors,” he said.

Continue Reading

VenturesNow

Partners ‘willing to walk away,’ US warns Tanzania over gas project delays

Published

on

Tanzania’s much-awaited, multimillion-dollar liquefied natural gas project is facing impending investor withdrawals from the United States, if delays caused by negotiating technicalities persist, the country has warned.

 

Companies like Exxon Mobil, who have been pushing the deal with Tanzanian authorities, have reached a point where they are now “willing to walk away,” US Deputy Assistant Secretary of State Joy Basu told journalists.

 

Basu, whose portfolio in the Joe Biden administration includes overseeing economic and regional affairs in Sub-Saharan Africa cautioned that “there is LNG in lots of places around the world now, and for Tanzania the window for this particular investment is closing fast. Such windows do not remain open forever.”

 

In meetings with Tanzanian government officials during the week to monitor the development of a US-Tanzania commercial dialogue that was initiated in October of last year, she stated that the project’s status was a top priority.

 

One of many international companies involved in the LNG project in southern Tanzania is Exxon Mobil, headquartered in Houston, Texas. The project’s estimated cost increased from $30 billion in 2014 to $42 billion by the previous year.

 

The project’s other partners include the state-owned Tanzania Petroleum Development Corporation, Exxon Mobil, Pavilion Energy (Singapore), Medco Energi (Indonesia), and Britain’s Shell and Norway’s Equinor, which have been designated as joint main operators.

 

She said that the project’s status was a major priority during meetings with Tanzanian government representatives this week to track the progress of a US-Tanzania commercial dialogue that was started in October of last year.

 

In order to expedite the development of its natural resources, the government intends to work with China’s Cnooc Ltd. to jointly explore for oil and gas in two offshore blocks that are owned by Tanzania Petroleum Development Corp., a state-owned company.

 

Since a downturn in 2020 when it 57.1 billion cubic feet of natural gas, a decline from 63.8 billion cubic feet the year before, the continent’s search for hydrocarbons has increased gradually as European countries look to diversify their energy sources and reduce their reliance on Russian gas.

 

Apart from the established main gas producing countries like Nigeria, Algeria, and Egypt, other African nations like Tanzania have been rising as potential players in the natural gas industry.

Continue Reading

EDITOR’S PICK

Tech11 hours ago

Applications open for 2024 Africa’s Business Heroes competition

Applications are now open for the 2024 cohort of the Africa’s Business Heroes (ABH) Prize Competition in continuation of its...

Sports12 hours ago

Nigerian keeper Nwabali becomes beautiful bride as English, Saudi clubs battle for him

Super Eagles and Chippa United of South Africa goalkeeper, Stanley Nwabali, has become a hot property as he is attracting...

Metro12 hours ago

Zambian opposition party LM demands sack of Agric Minister

One of Zambia’s opposition parties, Leadership Movement (LM), has called for the immediate dismissal of the country’s Minister of Agriculture,...

Culture12 hours ago

Ghanaian chef fails to break cook-a-thon world record

An attempt by celebrity Ghanaian chef, Failatu Abdul-Razak, to break the Guinness World Record for the longest cooking marathon by...

VenturesNow15 hours ago

Nigerian centra bank’s N1trn OMO bills oversubscribed

The Central Bank of Nigeria (CBN) has issued N1.053 trillion (680 million dollars) in short-term instruments in the recently concluded...

Metro18 hours ago

Fuel subsidy removal, a blessing to Nigeria, govt insists

Despite the excruciating hardship and hunger resulting from the unplanned removal of fuel subsidy by President Bola Tinubu as well...

Behind the News1 day ago

Behind the News: All the backstories to our major news this week

Over the past week, there were lots of important stories from around the African continent, and we served you some...

VenturesNow2 days ago

Partners ‘willing to walk away,’ US warns Tanzania over gas project delays

Tanzania’s much-awaited, multimillion-dollar liquefied natural gas project is facing impending investor withdrawals from the United States, if delays caused by...

Politics2 days ago

Chadian military leader Idriss Deby announces plan to run for president

Days after opposition politician, Yaya Dillo, was shot and killed in the capital N’Djamena, Chad’s interim president, Mahamat Idriss Deby,...

Politics2 days ago

Nigerian govt, bar association begin prosecution of electoral offenders 

The Nigerian government, in collaboration with the Nigerian Bar Association, has commenced legal proceedings against a number of electoral body—INEC—...

Trending