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East Africa

The report shows that Africa is projected to remain the fastest growing region in the world, after Asia, exceeding the global average of 3% in 2023

Africa’s economies continue to grow faster than the global average of 3% demonstrating resilience against several challenges including climate change, geopolitical tensions, rising inflation, food insecurity and rising debt. 

The President of the African Development Bank Group, Dr Akinwumi Adesina said, “It is forecasted that Africa will account for 11 out of the 20 fastest-growing economies in the world in 2024,” adding, “15 African countries have posted output expansions of more than 5%.

He was addressing on Thursday the Bank’s annual luncheon for ambassadors and heads of diplomatic missions as well as representatives of international organisations based in Abidjan, Cote d’Ivoire.

Last week at the African Union Summit in Addis Ababa, the African Development Bank launched its African Macroeconomic Performance and Outlook Report for 2024 (https://apo-opa.co/3TkIacW). The report shows that Africa is projected to remain the fastest growing region in the world, after Asia, exceeding the global average of 3% in 2023.

“At the African development bank, all our work is to support the countries to build resilience, whether it be to external economic shocks, climate shocks, or changes in global interest rates that have continued to put pressure on debt service capacities and depreciation of currencies driving up inflation,” Adesina said.

The Bank resumed the diplomatic luncheons after nearly five years due to the Covid-19 pandemic. It was also the first diplomatic luncheon since 2019, months before the Bank’s shareholders collectively agreed to a significant increase of the capital of the African Development Bank by 150%, moving it from $93 billion to $208 billion—the largest capital increase in the history of the Bank since 1964.

In addition, Adesina said, the 16th replenishment of the African Development Fund received a record $8.9 billion provided by donor countries, the largest ever replenishment in the history of the Fund since its establishment in 1973.

The African Development Fund will be able to do even more, after the Bank Group governors authorized the Fund to use its equity in the capital markets. “This landmark decision, taken by our governors during the 2023 Annual Meetings held in Sharm El Sheikh, Egypt, will allow the African Development Fund to raise an additional $27 billion to scale up support for the economic development of the 37 low-income countries,” he noted.

Adesina briefed the diplomats about the Bank Group’s financial innovations. “Just few weeks ago the Bank launched the first-ever hybrid capital on the capital market, the first multilateral development bank to do so globally. The $750 million hybrid capital issuance, oversubscribed at $6 billion, is a landmark globally.”

He also spoke about the Bank’s work the Inter-American Development Bank on how to better optimise the use of the Special Drawing Rights (SDRs) by rechannelling them from SDR-rich countries to the African Development Bank. SDR-rechanneling to the African Development Bank will be leveraged by 3-4 times. It is forecasted that Africa will account for 11 out of the 20 fastest-growing economies in the world in 2024

Adesina said the Bank Group’s Boards of Directors approved last year 159 operations, worth $10 billion for countries, the second-highest level of financing in the Bank’s history.

Overall, he said, the operations of the Bank have impacted directly on the lives of 400 million people over the last seven years.

Other achievements over the period include financing of over $44 billion in support of infrastructure, making the Bank the largest multilateral financier of infrastructure in Africa.

Infrastructure development includes, among others, the construction of mega bridges such as the Senegambia which now links Gambia and Senegal.

The Bank also provided $500 million to support the development of the Lobito Corridor that will link Angola, Zambia and the Democratic Republic of Congo in close partnership with the United States Development Finance Corporation and the Africa Finance Corporation.

The construction of the 4th bridge in the commercial capital Abidjan (https://apo-opa.co/4c23wmE) was financed by the African Development Bank Group.

Since Adesina was elected president of the Bank in 2015, the institution’s investments in Cote D’Ivoire have increased by more than 5-fold, rising from $460 million in 2015 to $3.1 billion in 2023.  

Initiatives like the $1.5 billion African Emergency Food Production Facility (https://apo-opa.co/3P1FCOk) and the Feed Africa Summit (https://apo-opa.co/3TkIeJI) that has so far mobilised $72 billion, highlight the Bank’s leadership in addressing climate change and promoting agricultural innovation.

The Bank’s strategy for quality health infrastructure and its Pharmaceutical Action Plan aim to address health infrastructure deficits and enhance Africa’s pharmaceutical industry, contributing to improved healthcare access and self-sufficiency in medicine production. The Bank will provide $3 billion to finance health infrastructure over the next 10 years.

Recently, the African Pharmaceutical Technology Foundation (https://apo-opa.co/430GBnD) established by the Bank in 2022 to help the continent manufacture its own medicines and vaccines, was profiled by Devex (https://apo-opa.co/3UYHKdp) as one of the 24 development organisations to watch in 2024.

The diplomats heard that the Bank is implementing several initiatives to expand economic opportunities and skills enhancement for the youths and women.

Mauricio Rueda Beltz Apostolic Nuncio in Cote d’Ivoire and the dean of the diplomatic corps said, “We encourage the African Development Bank to pursue its commitment and its reforms to better meet the expectations of populations for access to sustainable economic, social and environmental development. May God bless Africa, land of growth and prosperity.”

 

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

President William Ruto greets televangelist Benny Hinn during the latter's crusade at Nyao Stadium.[Denish Ochieng, Standard]

Shakahola heightened the suspicion of spiritual practices in Kenya. Kenyans have become theologically bolder.

The horrors awakened a sense of critique in Christians who were otherwise very trusting when it came to priestly instructions. Today, a big name and a slaying reputation are not enough. Kenyans have developed 'push' resistance. They stand their ground and are no 'pushovers'.

This said, Kenyans still fill stadiums to experience miracle-performing pastors. Overflowing stadiums tell of aspects of life that spirituality promises to cure. This yearning should tell priests that their services are still in high demand and that they should sanitise their craft.  

 

Benny Hinn was a beneficiary of an overflowing stadium. Skeptics may have hoped for a thinner attendance but it was just the opposite – bursting! For people who have listed lower attendance of crusades as one of the post-Shakahola effects, overflowing stadiums such as at the Benny Hinn crusade sent them back to the analysis desk.

Catholics and mainstreamers may have been in the congregation but their leaders were not on the dais. Hinn’s visit lay bare the divide in the contemporary Kenyan church. The split is both political and theological. The series of meetings were organised by the 'memorandum church' – the church that campaigns for the president and his crew. The rest of the church is considered critical of the government and therefore unworthy of involvement in such power-harvesting moments. 

A question: Looking at the state of the nation, if Kenya were to import a type of spirituality, which one would best serve our present situation - the Pastor Benny Hinn kind or the Rev. Martin Luther King one? Hinn was 'imported' by an initiative steered by the First Lady, thus making him a State guest. Therein lies a tyre-puncturing pothole.

When a prophet is invited by a government, there is a latent expectation that he will assist the ruling system with a jolt of spiritual power that yields a political kick. As an imported prophet, Hinn’s State hospitality is pitched in a way to earn a favourable prophecy. To avoid such for-hire moral traps, a prophet is best when free.

Televangelist Benny Hinn leads faithful in praise and worship at Nyayo Stadium on February 24, 2024.[David Gichuru, Standard]

In their independence, they discern more authentically as God-sent agents and not State guests. The hosting overkill pressurises a reciprocity in which prophetic pronouncements are akin to a vote of thanks.

Protest is the sting of the priest. A priest who has lost his sting is paralysed – and is a number that does not count. Stingless clergy will not be spared from the sting of the king who, upon feeding them, will deploy them not for the Lord’s work this time but for the king’s work – especially image propping and voter mobilisation. By Edward Buri, The Standard

People in Equity Bank at Kenyatta Avenue branch in Nairobi, Kenya. PHOTO | NMG

A second global ratings agency has maintained its outlook on Kenya’s banks at ‘B’ with a negative outlook, citing the high volumes of non-performing loans.

A ‘B’ rating is considered highly speculative. This means that although the issuer can meet their financial obligations, they are also vulnerable to adverse economic shocks.

Fitch Ratings Ltd said the country’s banking sector has high exposure to public sector debt arrears due to delayed government payments to contractors.

“Loan quality has been affected by the public sector arrears, where delayed government payments to contractors have forced them to run overdue on existing loans to local banks. As a result, the sector regulatory NPL ratio increased by 170 basis points in the first nine months of 2023 to reach 15 percent at the end third quarter of 2023,” said Fitch in its analysis.

Read: Kenya lenders plan to step up asset seizures over bad loans

“The most affected sectors were manufacturing and building and construction, where the absolute amount of NPLs increased by 50 percent in the first nine months of 2023,” it added.

This comes barely two weeks after another global ratings agency, Moodys issued a similar warning and revised its outlook on Kenya’s lenders to negative from stable, citing concerns about high volumes of non-performing loans despite solid profitability and liquidity levels.

“Despite solid economic growth, an array of challenges will weigh on borrowers’ creditworthiness and create difficult operating conditions for banks through 2024,” said Moody’s in its analysis.

“These challenges for borrowers encompass rising interest rates, increased taxes, reduced government spending, high inflation, foreign-currency shortages, and government delays in settling outstanding bills. Consequently, problem loans will rise.”

The volume of NPLs in the local banking sector rose by Ksh133.6 billion ($912 million) to Ksh621.3 billion ($4.24 billion) in the 12 months to December 2023, accounting for 14.8 percent of the sector’s loan book, compared with 13.3 percent in 2022.

Fitch expects retail loans to be significantly impacted by the decline in real disposable incomes as a result of the recent tax increases by the government.

Read: EA banks open to loan restructuring amid surge in defaults

It is also feared that continuing depreciation of the shilling would bolster inflation and exert additional pressure on borrowers’ repayment capacity.

“We expect increased debt servicing costs due to higher interest rates and delayed repayments by government contractors and parastatals to increase sector non-performing loans in the first half of 2024,” Fitch said.

“Impairment charges are the main source of vulnerability for Kenyan banks’ performance. We expect them to increase further as asset-quality risks crystallise.”

The majority of retail loans bear floating interest rates, meaning that debt-servicing costs have materially increased as interest rates have risen.

Higher interest rates have been accompanied by a reduction in households’ real disposable income due to higher inflation and a sharp increase in income taxes.

The Kenyan shilling depreciated 21 percent in 2023 becoming the worst-performing currency in the East African region.

Central Bank increased the policy rate by 375 basis points (BP) in 2023 and a further 50bp in February 2024 to 13 percent to address inflationary pressures and support the shilling.

“We expect the high-interest rates to add to the already-high banking sector non-performing loans ratio,” said Fitch.

Read: Moody’s sounds warning on Kenyan banks' defaults

The increase in policy rate saw lenders such as Equity Bank issue a public notice to the effect that it was increasing its lending rate to 18.24 percent from 17.56 percent.

Fitch, however, expects the Kenyan banking sector’s strong profitability and reasonable capital buffers to weather moderate asset quality deterioration in 2024, and provide room for healthy loan growth.

The agency rates three Kenyan banks— KCB, NCBA, and I&M — their local banking subsidiaries, and Stanbic Bank Kenya Ltd (SBK) at the level of Kenya’s ‘B’ long-term issuer default rating (IDR).

This is largely due to their heavy exposure to sovereign risk as a result of massive investment in government securities. IDR is a measure of the borrower’s vulnerability to default on its financial obligations. The borrower can be a corporate or sovereign country.

“Negative outlooks on the entities’ ratings mirror that on the sovereign Long-Term IDR, reflecting our view that the entities’ ratings are capped by the sovereign rating due to the concentration of operations within Kenya and significant sovereign exposure,” Fitch said.BY James Anyanzwa, The East African

  • Discovering a new meaning of home in Uganda’s natural splendor

Steeped in natural beauty and cultural diversity, East Africa is a treasure trove for adventurous travelers seeking new horizons. While growing up, Ahmed Molla was taught that home was defined by a specific address and familiar faces. However, as he journeyed through life, he discovered that home transcends mere coordinates; it is where love, comfort, and belonging converge.

Addis Ababa showed Ahmed that cultural richness abounds in Ethiopia’s capital, from bustling cafes scented with roasting coffee to streets resounding with traditional music. Yet for Ahmed, who was raised seeing home as belonging to a fixed place, truly experiencing Africa meant finding connection beyond boundaries.

Now in his 30s as the founder of a startup, Ahmed sought more adventure, authenticity and connection beyond Addis Ababa’s sights. Realizing Africa’s shared heritage, just as Ethiopia bears the moniker of “water tower of Africa,” he saw Uganda, nicknamed the “Pearl of Africa,” as a new realm to uncover.

“Uganda beckons with untamed beauty and warm hospitality,” said Ahmed, preparing for a journey of discovery. “It’s time to discover Africa’s soul in Uganda’s embrace.”

While Ethiopia has stunning natural landscapes and wildlife, Ahmed had heard Uganda unveils a tapestry of experiences to suit every traveler’s desires from thrill-seeking to restful relaxation—experiences that may differ from what Ethiopia offers.

 

“Before visiting, accounts told of Uganda accommodating all interests,” he noted.

Uganda’s tourism thrives on affordability and global accessibility, improved infrastructure and eco-initiatives empowering travelers to aid conservation. Eager to witness this, Ahmed embarked on an expedition across Uganda seeking community beyond familiar places.

For Ahmed, seeking leisure and cultural exploration in Uganda offered novel experiences. Uganda’s serene lakes and rivers provide the ideal setting for relaxing boat cruises and fishing, like on vast Lake Victoria with breath taking sunsets and water sports, he says, adding, the tranquil Nile River invites unwinding amid scenic vistas.

Both countries boast unique histories, attractions, and landscapes. Yet Uganda’s cultural diversity emerges as another highlight.

Exploring kingdoms like Buganda unveils traditional rituals. Vibrant festivals showcase musical dance celebrating diversity.

“Imagine a safari in renowned parks witnessing the Big Five up close, the thrill of spotting mountain gorillas amid dense forests are an unforgettable encounter,” said Ahmed.

As an Ethiopian accustomed to robust heritage and tribes, Ahmed says visiting Uganda is nothing different than connecting with welcoming people. “Tasting dishes like Matooke and Luwombo with sweet treats was a novel experience,” he noted.

Participating in community tourism projects allowed learning traditions and supporting sustainable development while fostering meaningful connections, according to him.

Tourism is a leading economic driver for Uganda, earning USD 729 million last fiscal year and 4.7 percent GDP contribution. Yet Ethiopia’s industry suffered 70 percent losses from pandemic and conflicts.

In addition to attracting tourists with infrastructure and variety, Uganda is ideal for hosting conferences, meetings, and incentive trips in its vibrant capital Kampala with lush greenery and stunning Lake Victoria views.

“Uganda’s MICE sector uniquely combines business and leisure for Ethiopians,” observed Ahmed. “Imagine exploring culture between conference sessions or thrill-seeking safaris as an incentive—once-in-a-lifetime experiences amid nature’s splendors.”

Though exact number of Ethiopians residing in Uganda is not available, a significant number of Ethiopian community has settled in Uganda, consisting of Ethiopian nationals who have engaged mainly in the service sector, startup business, employed in different sectors, as well as pursuing education.

“In the streets of Uganda, you will see lots of lots of small businesses, restaurants, grocery shops, hair salons owned by Ethiopians, including trade, construction and transportation businesses,” says Ahmed.

According to the Tourism Ministry report, the tourism sector in Uganda is on a path to recovery, although it has not yet returned to pre-COVID-19 data.

As the country takes steps to restore peace and stability, Ethiopia’s Ministry of Tourism is also working diligently to rejuvenate a sector that has incurred substantial losses. The Ministry has visions of making Ethiopia among the top five tourist destinations in Africa by 2025.  Before the horrific two-years internal conflicts and the pandemic, the country drew over 800,000 tourists, spending amounted to USD3.5 billion in 2019. the number went down to 518,000 international tourists in 2020, according to the World Bank.

Despite the damages the pandemic and the conflicts in different parts of the country inflicted on the sector, Ethiopia has immense tourism potential to be unlocked. the government has also embarked on construction of different tourist’s destinations, which Ahmed hopes will revive both the domestic and international tourist flow to Ethiopia. 

Uganda, according to Ahmed, revealed that home transcends physical places and resides where the heart finds comfort. “Here, I discovered a favorite spot immersed in warmth and joy, filled with excitement around every corner,” he reflected. Waking to bird song and fresh air, Uganda’s welcoming embrace makes settling in feel easy. Modern workspaces, he says, paired with plentiful opportunities foster both productivity and a sense of belonging.

As Ahmed prepares to return with valuable memories, he leaves with a new understanding.

“Home is wherever your heart finds solace,” he said. Uganda offers visitors the perfect balance of business and leisure in an environment surrounded by nature’s splendor and a vibrant culture, inviting all to create unforgettable experiences and memorable sense of place. By Meti Teshome, The Reporter

 

By WILFRED CLARKE 

From Kapital Radio’s Mic 1 To Mic 2 Of Think Media Expert studios, Korsi Asiseh comes out as Korzai with a new ‘banger’ of some sort. Namely, ‘Something Something’. 

Kwame Adinkra as a media personality did it with songs such as NuNu Me, Afrakoma, Piipi, Mmotiahene ,Fiona, and many others. 

Captain Smart made it by Fabewoso, while Andy Dosty sung Aden and 1K. Now, Korsi Asiseh takes over the baton and banter with his ‘Something Something’. 

As a media personality who has crossed carpet from radio to the singing booth, telling the notion that prompted the song, Korsi Asiseh said: “The song is about life and how certain endeavours or situations don’t give the expected outcome. 

“And how some of them don’t have answers. Like humans’ purpose on earth and what happens after life.”

Any proper project should have a mission and that of ‘Something Something’ according to Karzai :“It’s to set people thinking and dancing at the same time.”

Some years back, in his teachings, he did not tell us about 'The Thing' and Atumpan ‘The Talking Drum’ was allowed to 'escape' or 'dodge' his fans and the public as to whatever that thing was. 

Reeling from that ambiguity, here comes Korzai with his 'Something Something'. So, what is the 'Something Something' he is talking and singing about. 

Probing him rigorously, he let slip the response saying: ‘Something Something, simply in Akan would mean Bribi Bi or in Pidgin English, some way bi. Meaning ambiguous as you rightly put it.” 

Laying his expectation and categorisation as to where the latest song should be placed in terms of genre, he affirmed: “I will classify the song as Afro fusion because it is a fusion of highlife and Afro-beat.” 

Knowing his position within the realm of the media landscape professionally as a media personality, he thinks this of the public with regards to their perceived reactions: “I would want them to react to the music as someone who loves music and is giving to the world what he has within him.” 

So, ‘Something Something’ was written by Korsi Asiseh and it was recorded on February 17 2024 at ‘Think Media Expert studios’ in Accra. 

As to whether there is a potential album in the proverbial pipeline, an Extended Play or just a single song on its own, Korzai said: “It’s a single for now.” 

Hammer of Pure FM in Kumasi and some other DJs are 'pushing' the song for the public to notice. 

And as an industry person he is getting it smoother with regards to Power Play of 'Something Something' on the Airwaves, comparatively to some new artistes. 

Responding to the statement above, Korzai replied: “Regarding airplay it’s cool. Because I am not expecting much. So far, so good, the music is being heard, so with time I know it will penetrate the market.” 

The production sounds unique but ‘radical’ in the nature and stature of a renowned producer’s artistry. Not knowing, it is by the hands of the famous broadcaster on the nation of Ghana’s television Breakfast Show, Kafui Dey. Kudus to that Something Something. 

Picking his views about the originality, focus and capability of the song’s general standings within Ghana contemporary music terrain, he said: “My thoughts about the music is that the song is interesting.” 

So, ‘Something Something’ is available on most of the digital music outlet for public purchase, download and listening.

 

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