Africa Briefs
Zim hikes lending rate to 70%
Zimbabwe's central bank said on Friday it had raised its overnight borrowing rate from 50% to 70% after a surge in inflation and a steep fall in the domestic currency.
Zimbabweans face triple-digit annual inflation as the government has taken steps to relaunch a national currency.
Central bank governor John Mangudya said in a monetary policy statement that increasing interest rates would stabilise inflation, last published at 175% in June, and ease pressure on the exchange rate.
The central bank added that it was introducing dollar-denominated savings bonds with a 3-year tenor and an interest rate of 7.5% to try to stimulate greater saving.
Zimbabwe's finance minister on Wednesday announced the appointment of a monetary policy committee at the central bank as part of a set of reforms aimed at removing economic distortions and boosting confidence in policymaking. – Nampa/Reuters
Kenya targets officials' overseas trips
Kenya plans "brutal" cuts to spending, including on government officials' overseas trips, in an effort to rein in the fiscal deficit, its acting finance minister said on Thursday.
The government in its annual budget in June set a target to bring the fiscal deficit down to 5.6% of gross domestic product for the 2019/20 financial year (July-June), from 7.7% in 2018/19.
Critics have accused president Uhuru Kenyatta's government of ramping up borrowing at a rate that will saddle future generations with too much debt. The government has defended the borrowing, saying it is required to fund infrastructure.
Acting finance minister Ukur Yatani said all non-core expenditure will be reviewed to ensure the government can make savings and fund its programmes without relying too much on debt.
"The cuts will be brutal and sustained ... because the success of this government will depend on our dignity as a country to be self-sufficient," he told a public meeting to plan the budget for the next fiscal year. – Nampa/Reuters
Algeria looks into allowing foreign ownership
Algeria is looking into allowing majority foreign ownership in non-strategic sectors of its economy, the government said in a statement on state media late on Wednesday, without giving details.
Algeria has prevented foreign investors from holding stakes of more than 49%, and large parts of the economy have remained under state control.
A government statement announcing the draft 2020 budget included the reform, but it must still go through more layers of approval before becoming law.
It did not specify which sectors in the major energy producer are strategic, but economists say they could include oil and gas, electricity, transportation, water and telecoms.
Algeria has been looking into economic reforms in recent years as lower energy prices undermined its fiscal position. Oil and gas provide 94% of export earnings and 60% of a budget that doles out extensive benefits to citizens. – Nampa/Reuters
Zimbabwe's central bank said on Friday it had raised its overnight borrowing rate from 50% to 70% after a surge in inflation and a steep fall in the domestic currency.
Zimbabweans face triple-digit annual inflation as the government has taken steps to relaunch a national currency.
Central bank governor John Mangudya said in a monetary policy statement that increasing interest rates would stabilise inflation, last published at 175% in June, and ease pressure on the exchange rate.
The central bank added that it was introducing dollar-denominated savings bonds with a 3-year tenor and an interest rate of 7.5% to try to stimulate greater saving.
Zimbabwe's finance minister on Wednesday announced the appointment of a monetary policy committee at the central bank as part of a set of reforms aimed at removing economic distortions and boosting confidence in policymaking. – Nampa/Reuters
Kenya targets officials' overseas trips
Kenya plans "brutal" cuts to spending, including on government officials' overseas trips, in an effort to rein in the fiscal deficit, its acting finance minister said on Thursday.
The government in its annual budget in June set a target to bring the fiscal deficit down to 5.6% of gross domestic product for the 2019/20 financial year (July-June), from 7.7% in 2018/19.
Critics have accused president Uhuru Kenyatta's government of ramping up borrowing at a rate that will saddle future generations with too much debt. The government has defended the borrowing, saying it is required to fund infrastructure.
Acting finance minister Ukur Yatani said all non-core expenditure will be reviewed to ensure the government can make savings and fund its programmes without relying too much on debt.
"The cuts will be brutal and sustained ... because the success of this government will depend on our dignity as a country to be self-sufficient," he told a public meeting to plan the budget for the next fiscal year. – Nampa/Reuters
Algeria looks into allowing foreign ownership
Algeria is looking into allowing majority foreign ownership in non-strategic sectors of its economy, the government said in a statement on state media late on Wednesday, without giving details.
Algeria has prevented foreign investors from holding stakes of more than 49%, and large parts of the economy have remained under state control.
A government statement announcing the draft 2020 budget included the reform, but it must still go through more layers of approval before becoming law.
It did not specify which sectors in the major energy producer are strategic, but economists say they could include oil and gas, electricity, transportation, water and telecoms.
Algeria has been looking into economic reforms in recent years as lower energy prices undermined its fiscal position. Oil and gas provide 94% of export earnings and 60% of a budget that doles out extensive benefits to citizens. – Nampa/Reuters
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