Home > Insights > Uganda Central Bank warned that the looming global economic recession is likely to have an impact on the country’s balance of payments
Tuesday, 10 Sep 2019

Uganda Central Bank warned that the looming global economic recession is likely to have an impact on the country’s balance of payments

Insights Africa

Economic Outlook

Economic Outlook

  • Uganda Central Bank warned that the looming global economic recession is likely to have an impact on the country's balance of payments, which could result into exchange rate volatilities.
  • Bondholders of the 1.6 BN KES (15.4 MM USD) notes issued by Consolidated Bank have agreed to a postponement of the repayment date to October 22. The maturity of the loan which was due in July has been pushed forward to allow the lender seeks a bailout from the National Treasury to meet the repayments.
  • Insurance penetration in Kenya has dropped to 2.43% of GDP which is the lowest in 15 years, on the back of price undercutting in an industry where players are facing increasingly tough competition.
  • The Kenyan Shilling edged lower against the dollar as pressure came in from excess liquidity in the market and hard currency demand outweighing supply.
  • The World Economic Forum's (WEF) Global Future Council on Energy, which includes international entities such as the World Bank Group, has revealed that Botswana and Namibia are planning to develop 5 GW of solar capacity over the next two decades.
  • Zambia is making positive steps towards securing agreements with Brazil in renewable energy industry. Brazil had shown willingness to develop a biofuels industry in Zambia as a key driver to economic development.
  • The Zambian government has confirmed its commitment towards embracing digital technology in an effort to accelerate economic growth in the country by investing over 1.4 BN ZMW (106.3 MM USD) in digital infrastructure development.
  • The World Bank will continue to work with the Government of Rwanda to support its quest to connect the whole nation to electricity by signing a 112 BN RWF (125 M USD) credit agreement that will cater for the expansion of electricity access in the country.
Political Events

Political Events

  • Nairobi is lobbying UK firms to continue investing in Kenya, despite the continual Brexit chaos currently rocking London. Moreover, Nairobi is banking on recent UK assurances to ask firms to raise their investments in Kenya.
  • Spain's Catalonia region has intensified its search for Kenyan business partners by opening a local office facilitating direct trade linkages. Catalonia Trade and Investment director-in-charge of East Africa markets stated that the staff of Nairobi office has been visiting the industrial Area with a view of establishing available opportunities for Catalonia-based businesses.
Stock Market

Stock Market

  • The Nairobi Securities Exchange (NSE) is targeting to list at least one firm from its Ibuka incubation program on the main market by end of Q1-2020, offering hope that the listing drought at the market could be coming to an end.
  • A rule that requires local companies to offer at least 20% of their shares to the public before they are listed on the Uganda Securities Exchange (USE) is keeping away large companies from listing. According to industry sources, large companies operating in Uganda have majority ownership of between 85% and 90% held by big multinationals.
Companies Transactions

Companies Transactions

  • DHL has expanded its DHL Africa eShop business to 13 new markets, upping the presence of the global shipping company's eCommerce platform to 34 African countries.
  • The app went live in April 2019, bringing more than 200 US and UK sellers to African consumers.
  • Carrefour Kenya has repaid a 1.53 BN KES (14.7 MM USD) loan it obtained from Dubai-based parent firm Majid Al Futtaim before contractual maturity, an indicator of the growing fortunes and financial muscle of its local subsidiary.
  • French electric utility firm Engie has acquired Mobisol, a Berlin-based off-grid solar solutions firm whose regional operations are headquartered in Nairobi in order to start operations in three additional countries.
  • Motor vehicle leasing firm RentCo has inked a 180 MM KES (1.7 MM USD) leasing deal with the Laikipia County for road graders and tipper trucks that will ease road construction in the expansive county.
  • Local carrier Kenya Airways (KQ) has dropped its bid to run the Jomo Kenyatta International Airport (JKIA), 10 months after it submitted the embattled proposal. The move by the aviation firm comes after Parliament in June voted to nationalize KQ due mounting debts that have threatened to ground the company.
  • Eight local banks led by KCB Group and Co-op Bank have committed a total of 1 BN KES (9.6 MM KES) in Kenya Mortgage Refinance Company (KMRC), a public-private company that will provide long term funding to financial institutions offering housing loans.
  • The Infrastructure Development Bank of Zimbabwe has invited expressions of interest from local and international firms for the development of 10 solar and mini-hydro project.
  • Bank of Kigali's digital product, BK Quick spent 7.1 BN RWF (7.7 MM USD) to expand its digital services that will allow customers to apply for and access loans rapidly and save money through auto/fixed saving and also digital transactions by E-banking online with a BK App.


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