Investment News
Kenya
Africa’s Banking Industry Challenged to Invest in Carbon Markets
The African Guarantee Fund (AGF), the Clean Cooking Alliance, and the United Nations Capital Development Fund (UNCDF) have formed a strategic alliance to provide Africa’s banking sector with the knowledge and expertise needed for effective engagement in the carbon market.
In partnership with the Kenya Bankers Association (KBA), AGF, CCA, and UNCDF organized a “Banking on Carbon Markets” workshop that convened more than 100 Senior Bankers. This workshop focused on the financing of clean cooking projects and closely followed the Africa Climate Summit in Nairobi.
In response to growing pressure from customers, shareholders, investors, and regulators, banks are compelled to realign their corporate strategies and lending criteria in accordance with Environmental, Social, and Governance (ESG) standards.
Source-Daily Nation
President Ruto Launches CBK’s Central Securities Depository to Enhance Domestic Capital Market
President William Ruto inaugurated the Central Securities Depository, known as DhowCSD, at the Central Bank of Kenya (CBK) headquarters in Nairobi. This depository is designed to provide registry, custodial, and settlement services for both primary and secondary market activities at the country’s largest financial institution.
The president emphasized that DhowCSD will remove trade barriers and open up opportunities for millions of ordinary Kenyans to actively participate in and contribute to the country’s economic development. Consequently, individuals looking to invest in Treasury bills and bonds will no longer need to submit bids and payments for these securities at CBK but can do so online through the platform.
DhowCSD aims to revolutionize Kenya’s financial markets by improving operational efficiency, expanding digital access, deepening the market to include a wider range of participants, and enhancing the effectiveness of monetary policy operations. Moreover, existing investors who have been purchasing Treasury bills and bonds manually or through the Mobile Direct service will be migrated to this new platform.
Source-Citizen Digital
See what Kenya is using to attract Investment from Global Electrical Vehicle Firms
Key players in the Electric Vehicle (EV) industry are positioning themselves to establish a presence in Kenya, capitalizing on the tax incentives offered by the government to promote industrialization and the growth of sustainable transportation.
As per a report from Business Daily, an increasing number of electric car manufacturers are looking to produce their vehicles within the country in the short to medium term, aiming to benefit from reduced tax burdens.
According to industry experts, electric vehicles manufactured locally in Kenya are exempt from the 25% import duty imposed on fully assembled models imported from other countries. Furthermore, they are not subject to the 25% excise duty that applies to fully assembled imports. These tax exemptions are designed to incentivize companies that import completely knocked down (CKD) components and then assemble them at local facilities using locally sourced parts like tires.
Companies engaged in the local assembly of their EV models could gain a competitive pricing advantage over those that import fully assembled vehicles, thanks to these tax incentives.
Source-Business Insider Africa
Mauritius Exchange seeks to tap Kenyan Investors
The Stock Exchange of Mauritius (SEM) has opened a window for Kenyan investment banks and stockbrokers to trade on its market platform, potentially opening up new offshore investment options in the Indian Ocean Island State.
Allowing foreign members onto its ATS will allow the SEM to tap into a wider pool of investors, with the move coming at a time when African exchanges have sought to boost cross-border trading to improve liquidity and trade activity in their markets.
Last November, seven African exchanges, including the Nairobi Securities Exchange (NSE) and SEM, launched the African Exchanges Linkage Project (AELP) which is meant to facilitate cross-border trading of securities in Africa.
Source-Business Daily
Kenya set to host Twin Tourism Expos in November
Kenya is preparing to be the host country for the 3rd instalment of the East Africa Regional Tourism Expo (EARTE) in November of this year. EARTE is a yearly regional travel exhibition that is organized by the East African Community partner states, taking turns to host it.
This event serves as a platform to display the wide range of tourism attractions available in the region, catering to both consumers and those involved in the travel industry.
Source-Business Daily
Uganda
Mass Business Registration to earn Govt Shs90b
The Ugandan government has formally initiated a large-scale registration process for informal businesses, with the aim of generating a minimum of 90 billion Ugandan shillings over the next four years.
The Uganda Services Registration Bureau (USRB) will lead this registration effort, with the primary goals of reducing informality in the business sector and expanding the tax revenue base. The government’s objective is to register a total of 873,546 businesses by the fiscal year 2026/27.
Source-Monitor
Uganda’s $5 Billion Oil Pipeline Negotiations continue with China after Western banks caved in
Following pressure from activists that led to the withdrawal of several Western banks from the project, Uganda is currently in advanced negotiations with the Chinese export credit agency SINOSURE to secure financing for its crude oil pipeline.
The East African Crude Oil Pipeline (EACOP), which spans 1,445 kilometers (898 miles), is designed to facilitate the export of Uganda’s petroleum from its western region oilfields to a port located on the Indian Ocean coast of Tanzania.
Source-Business Insider Africa
Tanzania
Tanzania Coal Exports Triple, Diamond Sales Up By 60%, and Tourism Hits Record High in YE July 2023
The Bank of Tanzania (BOT) has released its August 2023 Monthly Economic Review, which provides essential macroeconomic indicators for the period ending in July 2023. The global economic shocks continue to have a negative impact on the external sector of the economy. Nevertheless, there is an expectation that the current account situation will improve.
This improvement is attributed to the declining trend in commodity prices in the global market since December last year, the reduced intensity of monetary policy tightening in advanced economies in recent months, and the measures implemented in the country to address the current account imbalance.
Foreign exchange reserves have remained sufficient, mainly driven by external loans and grants received by the Government. Service receipts have increased to USD 5,495.2 million in the year up to July 2023, up from USD 4,125 million in the year ending July 2022. This increase is driven by earnings from travel (tourism) and transportation receipts.
In the year ending July 2023, goods and services worth USD 12,991.9 million were exported, marking a 6.33% increase compared to the USD 12,218.2 million recorded in the corresponding period in 2022. This growth in exports is attributed to higher service receipts, particularly from tourism, and non-traditional goods exports, especially minerals.
Source-TanzaniaInvest
Investments in Tanzania reached USD 931 Million in August 2023
The Tanzania Investment Centre (TIC) has recently published its Investment Update for August 2023, revealing that a total of 58 investment initiatives valued at USD 931.60 million received approval during that month. Out of these 58 projects, 22 were related to manufacturing, 11 focused on transportation, 10 were in agriculture, 6 were linked to tourism, 5 pertained to commercial construction, 3 were service-oriented, and 1 centred around economic infrastructure.
Foreign Direct Investments (FDIs) accounted for 38% of the approved projects, local investments represented 34%, and joint ventures held 28%. The primary sources of FDI in August 2023 were China, contributing USD 422.25 million, followed by Mauritius with USD 24.83 million, and India with USD 19.75 million.
Source-TanzaniaInvest
