VenturesNow

Kenya, Japan companies in $620 million deals for auto assembly and eco-energy

Published

10 months ago

February 8, 2024

Kenya has committed to many agreements with Japanese companies, notably the Toyota Tsusho Corporation, geared towards investments in car assembly and renewable energy worth up to Ksh99 billion ($620.7 million).

Kenyan President, William Ruto, posted on social media that “in Tokyo, Japan, I witnessed the signing of the Framework Agreement for Collaboration between Kenya and Toyota Tsusho Corporation and later toured the Toyota Motamachi Factory.

“The pact entails Ksh15 billion ($94 million) in Meru Wind Farm Energy, Ksh8 billion ($50.2 million) Isiolo Solar Energy, Ksh800 million ($5 million) in Thika Kenya Vehicle Manufacturers (KVM)’s initial investment, Ksh75 billion ($470.22 million) in Menengai Geothermal Plant and Electrified Vehicles promotion.”

President Ruto went on to say that talks, which he claimed were moving forward well, were being held with Toyota about the possibility of opening a car plant in Kenya in order to meet the country’s expanding demand for its goods.

“The manufacturing project would reduce the number of used vehicles we continue to import and create jobs for our skilled manpower. I am glad that Toyota Tsusho Corporation finds the project viable. We undertake to provide sufficient incentives to multinational automotive manufacturers to set up shop in Kenya,” Ruto said.

The Toyota agreement was first inked in October during the G7 Session of Trade Ministers in Osaka, Japan, between the Japanese company and the Kenyan government. The purpose of the agreement was to renovate the local assembly factory, whose production capacity had been restricted by budgetary limitations.

Trade Cabinet Secretary Rebecca Miano confirmed the agreement at the time, however she did not specify what Toyota planned to invest in.

“Noting that the Kenya Vehicle Manufacturers, one of the local automotive assembly facilities in Kenya, is experiencing financial difficulties, it was agreed that Toyota Tsusho, as one of the stakeholders in the industry, step in to save the facility from eminent collapse,” stated Miano last October.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.