VenturesNow

Kenyan anti-tax protests extend to more towns and cities

Published

3 months ago

June 21, 2024

Protests against the Finance Bill have expanded throughout Kenya, from the capital city of Nairobi to other regions, as citizens remain opposed to President William Ruto’s proposal to raise the Ksh3.9 trillion ($31 billion) national budget.

After a 24-hour respite, street demonstrations in Nairobi resumed on Thursday morning, with armed police using tear gas to scatter the demonstrators. Running clashes broke out between the officers and masses of primarily young demonstrators who were trying to gain entry to the Parliament Buildings.

Several roads close to Parliament were shut by anti-riot police to keep an eye on it and make sure no citizens entered.

“We shall use other ways to get to Parliament and occupy it,” a protester said.

Other towns and cities, like as Mombasa, Kilifi at the Coast, Lodwar, Kakamega, Kisii, Nakuru, Eldoret, Nyeri, Meru, Nanyuki, and Kisumu, also saw similar demonstrations. Mombasa locals participate in a nonviolent protest march against Finance Bill 2024. The demonstrators that compelled Dr Ruto to rescind some of his tax proposals now demand that Parliament reject the entire bill.

“Don’t Amend, Reject! Ruto Must Go!,” they chanted in Nairobi’s Central Business District as they played cat and mouse with the police.

Thousands of young protestors flooded the streets of Eldoret, Dr Ruto’s hometown, stopping any commercial activity. The sizable throngs that participated in the #OccupyEldoret demonstrations mirrored the sea of humanity that was seen both during President Ruto’s inauguration and during the celebration of his victory in the 2022 election.

The protesters created a stir in the community as bystanders expressed support for their effort to get the Kenya Kwanza administration to remove the harsh taxes found in Finance Bill 2024.

Before gathering at several locations on the town’s outskirts, the demonstrators had first divided into four groups of several hundred people, waving protest placards and screaming anti-government, anti-Ruto, and anti-Finance Bill songs.

Calling out their elected leaders, the demonstrators threatened to closely monitor MPs during Thursday afternoon’s legislative vote. The demonstrations were mainly nonviolent; there was not a single instance of police walking side by side with protestors with tear gas canisters.

Despite the large number of police, the marchers were being gently led and protected by the law enforcement officials.

The proposed 16% VAT on bread, sugar transportation, financial services, foreign exchange transactions, and the 2.5% motor vehicle tax were removed from the Finance Bill, according to a Tuesday announcement from the Kenyan government.

VenturesNow

Zambia eyes recovery following worst drought

Published

8 hours ago

September 28, 2024

Ifeoluwa Dada

As it emerges from its worst drought in living memory, Zambia hopes to achieve a fast recovery in economic growth and a halving of its budget deficit in the following year, the country’s finance minister announced on Friday.

In contrast to a projected 2.3% growth in 2024, the copper producer aims for 6.6% growth in 2025, according to Finance Minister, Situmbeko Musokotwane, in a budget speech.

The El Nino-caused drought destroyed Southern Africa’s crops, resulting in food shortages and harming the region’s economic prospects this year.

Zambia’s finance minister said on Friday that the nation, which is coming out of the worst drought in living memory, intends to quickly recover economic growth and cut its budget deficit in half the next year.

Finance Minister Situmbeko Musokotwane stated in a budget address that the copper producer is targeting 6.6% growth in 2025 as opposed to a projected 2.3% increase in 2024.

A UNICEF study in March 2024 states that the majority of the country’s central and southern regions have been impacted by the dry spell since mid-January. These regions have gotten less rainfall than usual, which has resulted in the destruction of one million hectares of maize—nearly half of all the corn grown in the nation.

Since hydropower generates more than 80% of Zambia’s electricity, the analysis also predicted that the drought would cause a power shortage of 430 megawatts and have an impact on surface and groundwater levels. These projections would have serious ramifications for industries other than agriculture.

The minister further stated that following the conclusion of a Eurobond restructuring exercise, Zambia was still negotiating restructuring arrangements with certain commercial creditors.

He reported that the China Development Bank and the Industrial and Commercial Bank of China have just struck provisional restructuring agreements with Zambia.

It has been demonstrated that the agreements are in line with Zambia’s IMF program and the “Comparability of Treatment principle,” which aims to prevent the wealthier creditor nations that make up the Paris Club from making disproportionate concessions in comparison to other creditors.

The lengthy debt restructuring process in Zambia has hurt local financial markets and discouraged investment.

VenturesNow

Ghana central bank cuts key rate as inflation cools

Published

21 hours ago

September 27, 2024

Ifeoluwa Dada

The governor of Ghana’s central bank has stated that the country’s economy is still recovering strongly and that inflation is continuing to decline, causing the bank to drop its main interest rate by 200 basis points to 27%. This was the first rate cut since January.

At a press conference Friday, Bank of Ghana Governor Ernest Addison stated that economic indicators point to a proceeding disinflation, with price increases continuing to moderate in the direction of the year’s short-term range target of 13% to 17%.

“Such a strong signalling of the monetary policy rate by reducing it by 200 basis points tells you that the central bank is quite satisfied with the progress of recovery of this economy,” Addison said, adding that all indicators including growth, inflation and fiscal policy are improving.

According to Reuters polled economists in July, Ghana’s interest rate is predicted to drop by 200 basis points by year’s end.

“This easing of policy is understandable, given that the recent falls in inflation had caused real interest rates to rise, something that this cut will partially reverse,” said Leslie Dwinght-Mensah, economist and research fellow at Accra-based Institute for Fiscal Studies.

“The strong rate of economic activity, which official data recently revealed, also gave the central bank the comfort to take this step.”

Economists surveyed by Reuters in July expected that by year’s end, Ghana’s interest rate will have decreased by 200 basis points.

“The strong rate of economic activity, which official data recently revealed, also gave the central bank the comfort to take this step.”

Economists surveyed by Reuters in July expected that by year’s end, Ghana’s interest rate will have decreased by 200 basis points.

“The strong rate of economic activity, which official data recently revealed, also gave the central bank the comfort to take this step.”

Following the completion of preliminary debt restructuring negotiations with two bondholder groups, Ghana extended an invitation to holders of its approximately $13 billion worth of international bonds to exchange their holdings for new instruments.

Bondholders can accept the offer until September 30.