VenturesNow

Uganda to cut reliance on Kenya, plans exclusive oil supply deal to Vitol

Published

1 year ago

November 2, 2023

Uganda’s energy minister says the East African country wants to grant exclusive rights for the supply of all petroleum products to a unit of global energy trader, Vitol.

The deal will end a system that sources the oil products through neighbouring Kenya.

The minister, Ruth Nankabirwa said in a statement that the arrangement under which fuel companies in the landlocked country bought their supplies through affiliated firms in Kenya that imported the product on their behalf through Mombasa Port and accounted for 90% of Uganda’s fuel imports exposed it to supply disruptions and high pump prices.

“UNOC and Vitol Bahrain E.C. have negotiated a five-year contract, and the partner (Vitol) will be financing the business by providing working capital,” she said late on Tuesday.

According to the minister, the petroleum law had been amended by the cabinet to permit Vitol to be the sole supplier of the government-owned Uganda National Oil Company (UNOC). The products will be sold to petrol station operators by UNOC.

The minister further revealed that the legal changes that would buttress the deal were presented to parliament on Tuesday for its approval, although without giving a date for the parliamentary vote.

To guarantee the security of supply for Uganda, Vitol and UNOC would establish “buffer stocks” in Uganda and neighbouring Tanzania, Nankabirwa said.

Using Kenyan importers had “exposed Uganda to occasional supply vulnerabilities where the Ugandan retail companies were considered secondary whenever there were supply disruptions,” which affected retail prices, Nankabirwa said.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

5 days 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

6 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.”