Musings From Abroad

World Bank supports Kenyan central bank’s interest rate hike

Published

1 month ago

April 15, 2024

The World Bank has noted that the decision of the Central Bank of Kenya (CBK) to raise interest rates, and the partial payment of its Eurobond have contributed to the recent stability of the Kenyan Shilling.

Bank of Kenya’s (CBK) Monetary Policy Committee raised the policy rate by 50 basis points to 13.00% at its first meeting of 2024 on February 6, 2024. The policy rate then rose to its highest level in more than ten years. It was a big surprise to most market experts that the rate went up after being raised by 200 basis points in December.

The Central Bank Rate (CBR) was raised twice in a row by CBK in December and February, bringing it up from 10.5% to 13%. The main goal was to support the shilling by getting foreign investors to put their money into local investments like government bonds.

The international lender says that the Central Bank of Kenya’s move to raise the benchmark lending rate has helped protect the local currency. They also say that the demand for shilling has grown because Eurobond notes that mature in June are being partially repaid.

So far this year, the shilling has gained the most value compared to other currencies in Sub-Saharan Africa. The Zambian Kwacha has also gained some value, but not as much.

“The Kenyan shilling is the best-performing currency in the sub-continent, and it recorded an appreciation of 16% so far this year. After strengthening by 14% in mid-February, the Zambian Kwacha has lost some ground and recorded a year-to-date appreciation of 2.4% as of mid-March. In both cases, the monetary authority hiked interest rates to defend their currencies,” the World Bank notes in a new regional outlook report.

Related Topics:Central Bank of Kenya Featured World Bank

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Musings From Abroad

China’s Hailiang, Shinzoom to establish vehicle battery installations in Morocco

Published

5 hours ago

May 16, 2024

Ifeoluwa Dada

Hailiang and Shinzoom, Chinese car battery makers, will establish two separate operations in Morocco as the country strives to adapt its burgeoning automotive sector to rising demand for electric vehicles, Moroccan officials announced on Tuesday.

Tanger Tech, the Moroccan northern industrial zone’s development authority, said Hailiang intends to establish a $450 million copper facility on a 30-hectare plot of land. Shinzoom, a subsidiary of Hunan Zhongke, plans to invest $460 million in an anode plant spanning 20 hectares, according to a statement.

In April, the Moroccan government approved Chinese electric battery company BTR New Material Group (835185.BJE)’s plans to build a factory in Tangier to manufacture crucial component cathodes.

Another Chinese firm, CNGR Advanced Material (300919.SZ), plans to develop a cathode plant in Jorf Lasfar, 100 miles south of Casablanca, where the government has set aside 283 hectares for electric battery sectors.

Last year, the Moroccan government and China’s Gotion agreed to examine establishing an electric vehicle battery plant in the country, with a potential investment of up to $6.3 billion. Last month, Industry Minister Ryad Mezzour told Reuters that the Gotion project was moving forward, with conversations over its footprint and location.

Morocco’s strategic location on the Strait of Gibraltar, free trade agreements with important EU and US markets, and existing automotive sector cluster all attract Chinese enterprises.

In 2023, the automotive sector topped Morocco’s industrial exports with $14 billion, a 27% increase. Morocco is home to Stellantis (STLAM.MI) and Renault (RENA.PA) production factories with an annual combined capacity of 700,000 automobiles, as well as a network of local suppliers.

Musings From Abroad

Prince Harry, Meghan treated to street-style dances in Nigeria as their trip winds down

Published

3 days ago

May 13, 2024

Ifeoluwa Dada

On Sunday, Prince Harry and his wife Meghan were treated to street-style dances in Lagos, Nigeria’s commercial capital, where they announced a partnership between their Archewell Foundation and the non-profit Giants of Africa, which utilizes sports to empower young people.

The Duke and Duchess of Sussex are making their first visit to Nigeria, where they were welcomed by the country’s chief of defence staff. The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, where Harry participated in ball-bouncing drills and shot a hoop.

“What you guys are doing here at Giants of Africa is truly amazing,” he said. “The power of sport can change lives. It brings people together and creates community and there are no barriers, which is the most important thing.”

The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, and Harry stepped on the court for some ball-bouncing drills and to shoot a hoop.

Former Toronto Raptors star Masai Ujiri, president of Giants of Africa, wished Meghan a happy Mother’s Day and said his organization was uniting communities and uplifting young people through sport, especially. Archewell Foundation and Giants of Africa will construct a basketball court in Nigeria’s capital Abuja.

“Talk about full circle again – never did I think we would be able to be here all those years later supporting the expansion of this incredible organization,” she said.
Harry and Meghan were set to round off their Lagos trip by attending a reception for a local charity. The couple live in the United States with their two children after Harry gave up working as a member of the royal family in 2020.