VenturesNow

Kenya to utilize $500 million World Bank loan to pay off its bonds

Published

3 months ago

June 7, 2024

Kenya’s central bank governor announced on Thursday that the country intended to settle the about $500 million maturing Eurobond with a portion of a loan from the World Bank.

To finance the buyback of a significant chunk of the $2 billion bond that matures in June, the East African nation sold a $1.5 billion international bond in February at a steep cost. Before it, investors had expressed concern that Kenya’s tight public finances would prevent it from being able to repay the bond.

“We do expect some disbursements from the World Bank of about $1.2 billion related to the development policy operations. Part of that … will be used to settle the $500 million of the remaining Eurobond,” Central Bank of Kenya Governor Kamau Thugge told a news conference.

When asked about a World Bank report claiming that another buyback by the government was planned for later this year, Thugge replied that the bank was still in talks with the Treasury.

Despite recent flooding, he said the central bank was sticking to its 5.7% economic growth prediction for this year since the services sector was strong and agriculture was doing well.

Following 5.6% growth in 2023, Kenya’s GDP is predicted to have increased by 5.8% in the first quarter of this year.

The central bank maintained its benchmark lending rate at 13.0% on Wednesday, stating that the present policy would guarantee that inflation would be steady in the foreseeable future around the middle of its target range.

In answer to inquiries over the timing of rate reductions, Thugge stated that the bank would consider outside events before to determining the path its benchmark rate would take at the right moment.

VenturesNow

Ezz al-Arab appointed as Egypt’s CIB chairman

Published

1 day ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

VenturesNow

Nigerian inflation falls again, drops to 32.15% in August

Published

1 day ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.