Africa Briefs

Zim switches to managed float exchange rate

Zimbabwe will adopt a "managed float" exchange rate regime, finance minister Mthuli Ncube said yesterday, abandoning strict control of foreign exchange by the central bank in the latest in a series of currency reforms that have so far failed.

The latest move will see banks take a bigger role in foreign currency trades, narrowing the gap with the unofficial market by allowing trade on a more transparent platform.

"Zimbabwe has had no transparent and effective foreign exchange trading platform for a long time. Consequently, official rates have not been effectively determined, while a thriving parallel market has developed," Ncube said.

He said an electronic forex trading platform was being put in place immediately.

Last month the International Monetary Fund warned that delays by Zimbabwe in implementing foreign exchange and monetary reforms risked undermining the new currency and the government's reengagement internationally on debt arrears. – Nampa/Reuters

Algeria faces 'unprecedented' crisis

Algeria's prime minister said on Tuesday the country faced an unprecedented "multi-dimensional crisis" and urged people to make fewer demands of the government and reduce their street presence.

The comments by prime minister Abdelaziz Djerad were an apparent reference to a year of weekly mass protests, which are continuing even though they have already led to many changes at the top of the ruling hierarchy.

The demonstrators are demanding wholesale changes in the power structure and the army's withdrawal from politics.

The government has approved a 9.2% cut in public spending for this year compared with 2019 but kept subsidy policy unchanged in a bid to avoid social unrest.

Algeria subsidies almost everything from basic foodstuffs to fuel, housing and medicine. - Nampa/Reuters

Tanzania's growth estimated at close to 6%

Tanzania's economic growth in 2019 is estimated at close to 6%, the International Monetary Fund said on Thursday, driven by "buoyant" activity in the construction and mining sectors.

"The pace of economic activity appears to have increased in recent months prompted by higher public investment, a rebound in exports, and an increase in credit to the private sector," the IMF said in a statement.

"Prudent fiscal and monetary policies have delivered economic stability," it added.

Banks in Sudan to introduce Visa systems

Several banks in Sudan are introducing Visa payment systems as the country seeks to develop its financial sector following decades of isolation, a central bank official and the US financial services company said.

Bank of Khartoum, Qatar National Bank and United Capital Bank (Bank Almal) have received approval to start using the systems, which were expected to be launched in about three weeks, said Omar Amrabi, head of electronic banking services (EBS) at Sudan's central bank.

A further six banks have applied for approval and were awaiting a response, he said.

Commercial and financial transactions in Sudan have been restricted by sanctions and the country's listing as a state sponsor of terrorism by the United States in 1993. – Nampa/Reuters