Africa

The Central Bank has lowered its main policy rate by a quarter percentage point, in a move meant to afford Treasury and businesses cheaper access to credit, Business Daily Africa reported. The Monetary Policy Committee (MPC) announced on Thursday after its bi-monthly meeting that it had cut the Central Bank Rate to 5.75 per cent. Interest rates have been on the rise in the past two months as investors demanded higher returns on Treasury bonds following the State’s announcement that it would increase its domestic borrowing target by 14 per cent to Sh120 billion this year.

Sudan’s government wants its $38 billion debt forgiven by international lenders before it separates from an independent Southern Sudan, said former U.S. President Jimmy Carter, Bloomberg BusinessWeek reported. “A substantial portion of it should be forgiven so their limited resources are not going out to rich nations, who I think can certainly afford the debt,” Carter told reporters today in Juba, capital of the semi-autonomous region of Southern Sudan. Southern Sudan began a weeklong referendum on Jan.

The clock is ticking for Ivory Coast to pay interest on a $2.3 billion bond and investors are sceptical the West African country, in the midst of a tense political stand-off, will avoid its second debt default in little over a decade, Reuters Africa reported. Ivory Coast owes nearly $30 million on the bond after failing to make a payment last week but has a 30-day grace period, until the end of January, before it would be declared in default. Meanwhile, its crisis looks to be deepening.

Parliament’s Budget Office (PBO) says Kenya’s large and rapidly expanding underground or grey economy is never captured in official data but now accounts for nearly half of the country’s Gross Domestic Product, Business Daily Africa reported. Kenya’s underground economy has expanded rapidly in the past five years to become a mammoth Sh825 billion industry that is denying the government at least Sh275 billion in uncollected revenues, the PBO says.

Commercial banks and micro-lenders are now required to share a wide range of information on their customers, including records of dishonoured checks, compulsory closure of accounts and late payments or credit defaults on all types of facilities, according to the new rules published last week to facilitate the establishment of a reliable risk assessment system.

Union Bank of Nigeria Plc has initiated a legal action before the Federal High Court in Lagos against four firms and their alter ego (promoter), Mr. Jimoh Ibrahim, following the bank‘s claim that the defendants are owing it N22.55bn, Punch reported. The four firms are NICON Investment Limited, Global Fleet Oil and Gas Limited, Nigeria Reinsurance Corporation Plc, NICON Insurance Limited and Union Registrars Limited. The bank also joined the Corporate Affairs Commission as co-defendants to the suit. In an ex-parte application filed by its lawyer, Mr.

The Commercial Court has rejected an application by Aya Bakery to block being put under receivership and paying a sh2b arbitral award to Roko Construction, NewVision.co.ug reported. The head of the Commercial Court, Justice Geoffrey Kiryabwire, ruled that Enoth Mugabi of Mugabi and Company Advocates, who was appointed receiver of the Aya Bakery, should, instead, immediately enter the premises and prepare a statement of affairs of the company and file his findings in court.

The Group of 20 is beginning to look more like the G19 plus 1 as emerging and rich countries alike accuse the United States of breaking a vow of unity, Reuters reported. This week's G20 summit will require every bit of President Barack Obama's diplomacy skills after the Federal Reserve embarked on a new $600 billion bond-buying spree, sparking criticism from four continents that the U.S. central bank was ignoring the global repercussions.

Kenya’s public pensions provider, the National Social Security Fund (NSSF), risks losing a significant portion of its movable assets next week over a Sh663 million debt it owes a developer for breach of contract, Business Daily Africa reported. NSSF was left holding the multi-million shilling debt after it lost a legal tussle pitting it against a company it had contracted to build an estate in Nairobi’s upmarket Kitisuru area.

The Attorney-General has been directed to respond to a petition filed by the Kenya Planters Co-operative Union (KPCU) seeking to be bailed out of receivership, Business Daily Africa reported. Constitutional Court Judge Roselyn Wendoh on Wednesday told the State Law Office to file its replying affidavit within 14 days. Kenya Commercial Bank (KCB) and Coffee Board of Kenya were also asked to respond within seven days upon being served by the AG. The parties involved in the dispute will return to court on November 3 to confirm compliance with the orders.