VenturesNow

Turkish company chosen by Uganda for Malaba-Kampala SGR

Published

5 months ago

August 2, 2024

Before the year ends, work is expected to start on the much anticipated multibillion-dollar Standard Gauge Railway (SGR), which would run from the Kenyan-Ugandan border at Malaba to Kampala.

The project coordinator, Mr Perez Wamburu, announced that M/s Yapi Merkezi, a Turkish contractor, will now be building the Malaba-Kampala (eastern route).

The amount of money that the Turkish corporation is investing in the project is unknown. After eight years of non-delivery, Kampala terminated the deal early last year, despite the Chinese having agreed to invest over $2.2 billion.

“We are at the tail end of the procurement of Yapi Merkezi. We have discussed the costs and we are at the bottom line of agreeing that we shall have the contract after it has been approved by the Attorney-General. We hope to start before the end of this year,” Mr Wamburu told the media during a briefing at Uganda Media Centre in Kampala. “We have done due diligence on this company and we have seen what they have done in Tanzania.”

This development occurs nine years after the project’s inception in Tanzania, Uganda, Kenya, South Sudan, Rwanda, and other partner states of the East African Community. The project’s goal is to lower the high transportation expenses brought on by cargo delays.

According to Mr. Wamburu, the initiative would soon be submitted for review by the Ministry of Finance.

Speaking at the same function, Mr. Godfrey Kabyanga, the Minister of State for ICT and National Guidance, disclosed the reasons behind the first Chinese contractor’s failure, citing unfavourable circumstances.

To finance the building of the Malaba-Kampala SGR line, Uganda first approached China Exim Bank.

“Their conditions were not favourable to us but we’ve gone with the Turkish firm. They are more favourable and we are going to work with them,” Mr Kabyanga said. “The development of the SGR is on and work will commence as soon as the financing arrangements are sorted so Ugandans should not be sceptical,” he added.

Kenya and Uganda set out to design an SGR system that would connect Mombasa, Nairobi, and Kisumu to Kampala.

According to Mr. Kabyanga, the Ministry of Works submitted a report on the status of the SGR project in Uganda to the Cabinet during its Monday meeting.

The 1,500-kilometer railway project also aims to create a modern, high-capacity network that will speed up transit, make it easier for people and goods to move around, and encourage economic growth by establishing seamless connectivity between Uganda and its neighbouring nations.

To connect the member states and increase trade in the more than 300 million-person region, the presidents of South Sudan, Rwanda, Kenya, Tanzania, and Uganda started building the SGR in 2013.

Only Tanzania and Kenya have seen notable advancements in their national construction lines thus far. The planned 332-kilometer Malaba-Kampala stretch will be constructed.

VenturesNow

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.

VenturesNow

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.”