President Hassan Sheikh Mohamud of Somalia has officially nullified the recent agreement between Ethiopia and the breakaway region of Somaliland. The deal, signed on New Year’s Day, aimed to grant Ethiopia access to the Red Sea in exchange for recognizing Somaliland’s independence. The rejected agreement permitted Ethiopia to lease a strategic 20 km (12 miles) […]
Ethiopia finds itself in a precarious financial position as Fitch Ratings delivers a sobering blow by downgrading its Long-Term Foreign-Currency Issuer Default Rating (LTFC IDR) to ‘RD’ (Restricted Default) from ‘C.’ This decision, prompted by the Ethiopian government’s failure to meet the USD33 million Eurobond coupon payment due on December 11, 2023, signals a critical […]
U.S. banks are gearing up for an extended period of pressure on their net interest margins (NIM), even with the looming prospect of Federal Reserve rate cuts, according to insights from S&P Global Market Intelligence. The recent interest rate hikes by the Federal Reserve have catalyzed a significant shift among consumers, redirecting them towards higher-yielding […]
In a strategic move to bolster the stability and resilience of Kenya’s financial sector, the National Treasury is actively considering a revision of commercial banks’ core capital requirements. The current minimum threshold, set at Sh1 billion since 2012, is under scrutiny, signaling potential consolidation activities among smaller lenders. Outlined in the 2024 draft Budget Policy […]
In response to the looming threat of maize lethal necrosis disease, Malawi has taken a strategic step by temporarily banning the import of unmilled maize from its key suppliers, Kenya and Tanzania. The Ministry of Agriculture issued a comprehensive statement, underlining the gravity of the situation. The disease, with no known treatment, poses a serious […]
In a significant economic downturn, the United Kingdom finds itself on the brink of a technical recession as newly revised data reveals a contraction of 0.1% in Gross Domestic Product (GDP) between July and September. This downward adjustment, compared to the initial estimate of flat growth, is coupled with a revised stagnant growth of zero […]
Ethiopia finds itself at a financial crossroads as it becomes the third African nation to default on a Eurobond repayment, echoing the economic struggles seen in Zambia and Ghana. Governor Mamo Mihretu, leading the National Bank of Ethiopia, confirmed the failure to meet a $33 million “coupon” payment on the country’s only international government bond. […]
The Hustler Fund, a cornerstone initiative aimed at supporting micro, small, and medium enterprises (MSMEs), is grappling with a significant hurdle as loan defaults by Kenyan borrowers reach a critical Sh9.9 billion. Launched with optimism by President William Ruto and Prime Cabinet Secretary Musalia Mudavadi at the Green Park Terminus in Nairobi last year, the […]
In a significant move to combat years of escalating inflation, Turkey’s central bank, led by former Wall Street banker Hafize Gaye Erkan, has implemented a bold 250-basis-point increase, pushing the key interest rate to 42.5%. This strategic decision comes on the heels of an intensive seven-month tightening cycle, totaling a substantial 3,400 basis points. Anticipation […]
In a surprising turn of events, Angola has announced its departure from the Organization of the Petroleum Exporting Countries (OPEC), citing a divergence of interests. This decision, rooted in a dispute over Angola’s 2024 output quota, has raised concerns about the unity within OPEC and its broader coalition, OPEC+. Angola’s Oil Minister, Diamantino Azevedo, stated […]
A historic moment in East African energy cooperation unfolded this week as Ethiopia commenced its first-ever electricity exports to Tanzania,...
The United States Senate is currently embroiled in a high-stakes, marathon voting session on a sweeping budget bill, colloquially dubbed...
In a landmark moment for Burundi's energy future, President Evariste Ndayishimiye this week inaugurated the Jiji hydroelectric plant, a crucial...
The financial landscape in Kenya has seen a notable development with the Central Bank of Kenya (CBK) announcing the cancellation...
