World Bank approves $57bn for Nigeria, others
The World Bank Group has announced the approval of $57bn for Nigeria and other sub-Saharan African countries for the next three years.
A statement issued by the bank in Abuja on Monday said the World Bank Group President, Jim Yong Kim, made the announcement before leaving for a trip to Rwanda and Tanzania to emphasise its support for the entire region.
The announcement, which followed a meeting with G20 finance ministers and central bank governors, said the fund would be used to scale up investments and de-risk private sector participation for accelerated growth and development in Sub-Saharan Africa.
Kenya borrows total of $1.55 billion in three syndicated loans
Kenya borrowed $800 million in a syndicated loan from four international commercial lenders, part of a package totalling $1.55 billion.
The country also got a $500 million syndicated loan with Cairo-based African Import Export Bank (Afreximbank) and the Trade Development Bank (TDB), Afreximbank said. Another $250 million syndicated loan was agreed earlier with TDB.
"The facility, for which Afreximbank and TDB acted as joint mandated lead arrangers, is part of a $1.55 billion debt package of three facilities being arranged and raised in parallel," Afreximbank said in a statement issued on Monday.
Kenya had set out to raise 150 billion shillings ($1.46 billion), partly to plug a fiscal deficit equal to 9.7 percent of gross domestic product in its budget for the fiscal year to June 2017.
World Bank to lend Tanzania $2.4 bln over 3 years for infrastructure projects
The World Bank will lend Tanzania $2.4 billion over the next three years to finance infrastructure projects, the bank's president Jim Yong Kim said on Monday.
Tanzania is seeking financing for infrastructure projects as part of its plans to transforming the country into a regional transport and trade hub.
"Tanzania will be able to access an estimated $2.4 billion in concessional financing, an increase of half a billion dollars over the past three-year period," Kim said during a visit to Tanzania's commercial capital Dar es Salaam.
Kim and Tanzania's President John Magufuli also attended the signing of documents on three World Bank-funded projects worth $780 million aimed at improving public infrastructure.
TEF Selects 1,000 Successful Applicants for 2017 Entrepreneurship Programme
The Tony Elumelu Foundation (TEF), an African founded philanthropic organisation committed to entrepreneurship development, yesterday unveiled the 1,000 African entrepreneurs selected out of a total of 93,000 applicants for the 2017 class of its $100 million entrepreneurship programme.
Applications were received from entrepreneurs across 55 African countries, which was over 100 per cent increase from 2016, and nearly quadruple of the 2015 application numbers.
Tanzania cuts commercial bank reserve ratio to boost lending
Tanzania's central bank has cut the minimum reserve ratio required of commercial lenders to 8 percent from 10 percent, the latest monetary easing measure aimed at reducing borrowing costs and stimulating economic growth.
The change to the statutory minimum reserve requirement (SMR) will take effect on April 20 and follows the bank's decision two weeks ago to slash its discount rate to 12 percent from 16 percent.
Bank of Tanzania Governor Benno Ndulu announced the measure in a circular to commercial banks dated March 21 and seen by Reuters on Wednesday. It will apply to both domestic and foreign currency deposit liabilities.
Uganda says seeking $500 million loan from China for roads in oil area
Uganda says it has asked China for a $500 million loan to help build almost 600 km (360 miles) of roads in the country's oil-rich west, amid criticism over heavy borrowing that has ballooned the country's debt.
Uganda has discovered an estimated 6.5 billion barrels of crude reserves on its Albertine rift basin along the border with the Democratic Republic of Congo.
However, lack of infrastructure, such as roads and an export pipeline, as well as disagreements between the government and international oil companies over taxes, have repeatedly delayed production.
The Uganda National Roads Authority needs the money to build 580 kilometres of roads around the area, said Mark Ssali, head of public and corporate affairs at the state-run UNRA.
"There have been some contacts with Exim Bank (of China) for the loan," he told Reuters in an interview on Wednesday. "But we are currently procuring a Chinese contractor, which is a precondition for any concrete talks with Exim."
BoI offers women entrepreneurs N13bn loans
The Bank of Industry has said its loan exposure to enterprises owned and promoted by women has hit N13bn, noting that plans are underway to improve access of related businesses to developmental financing.
It said this in a statement, adding that this was in furtherance of efforts to support the diversification programme of the Federal Government and create employment through empowerment of women entrepreneurs.
The statement quoted the Managing Director, BoI, Mr. Waheed Olagunju, as saying this at an event tagged ‘Be bold for change’, to commemorate the 2017 International Women’s Day.
CBN Loans To Commercial Banks Rise To N9.85trn In 11 Weeks
Loans from the Central Bank of Nigeria (CBN) to commercial banks operating in the country has soared to N9.85 trillion in 11 weeks due to illiquidity in the economy, LEADERSHIP checks have revealed.
It was also gathered that the increase in borrowings by the banks may have been triggered by demand for funds to participate in the special foreign exchange (FX) auctions conducted by the apex banking regulating body.
Aftermath of its new foreign exchange policy and $600 million injection into the market, banks were to provide the Naira equivalent of dollar purchases from the CBN.
Interbank lending rates defy N413b securities auction, banks’ debit
Interbank lending rates were relatively stable through the weekend despite a combined auctions of government securities worth N413 billion, by the Central Bank of Nigeria (CBN) and Debt Management Office (DMO), as well as debit transactions against banks for foreign exchange intervention.
The development showed that credit in the financial system was also stable, as rates for mobilising quick cash by banks also influence their general outlook of lending to the real sector, as well as the retail segments.
CBN had raised about N253 billion in Treasury Bills, against planned N213 deals, made up of matured securities that were rolled over, while DMO overshot its target of N130 billion by additional N30 billion on the back of falling inflation.
According to Afrinvest Securities Limited, as banks got debited for the Special Wholesale Intervention Forward Sales of $150 million carried out on Monday, there was also another debit for successful bids at the DMO Bond auction.
This dragged liquidity down though the week till Friday, but could not significantly impact on interbank lending.
Minister urges banks to increase agric funding
The Minister for Agriculture and Rural Development, Chief Audu Ogbeh, has urged the Organised Private Sector (OPS), especially Nigerian banks, to increase funding in agriculture and make the country food self-sufficient.
The Minister, who identified lack of capital and research as a major hindrance to job creation and development in the sector, also stressed the need for banks to support the growth of the sector by lending on a single digit rate to farmers.
Access to funding will boost agricultural production, as farmers will be able to invest in higher –yield seedling, better farming tools including irrigation as well as afford extension services like research and development.