Finance

NAIROBI (Capital Markets in Africa) – Kenya should slow down on borrowing to fund President Uhuru Kenyatta’s key legacy projects, the World Bank has warned. Kenyatta’s “Big Four,” a plan to boost manufacturing, farming, health care, and low-cost housing, has put pressure on the treasury to hike spending even as it struggles to grow revenue. The Treasury expects public debt to climb 11% to 6.45 trillion shillings ($64 billion) by the end of June from a year earlier….

HARARE (Capital Markets in Africa) – Corporates in Zimbabwe are moving to solar energy to stave off erratic electricity supply and escalating fuel costs. OK Zimbabwe, the largest retail operator with 64 stores in the southern African nation, is joining the move to renewable energy and will start using solar power at its suburban stores this year, according to Chief Executive Officer Alex Siyavora. Power cuts lasting as long as 18 hours a day have added…

JOHANNESBURG (Capital Markets in Africa) – A financial crisis at South African Airways deepened Tuesday as a funding squeeze forced the national carrier to cancel several domestic and international flights. Eight flights between Johannesburg and Cape Town will be cut this week, and 20 between Johannesburg and Durban, the carrier said in an emailed statement. It also canceled 10 flights between Johannesburg and Munich. The move is “in line with SAA’s usual policy of reviewing flights and consolidating…

LAGOS (Capital Markets in Africa) – Jumia Technologies AG has given itself five quarters to convince investors that the Africa-focused e-commerce firm is on a path toward profitability. The company is looking to claw its way back after watching its shares drop about 58% since a high-profile U.S. initial public offering in April. The company will spend the next four or five quarters investing in technology, marketing, and operations teams, Co-Chief Executive Officer Sacha Poignonnec said…

LONDON (Capital Markets in Africa) – Ecobank Transnational Inc. is partnering with the United States Agency for International Development and Rabobank to double the amount of credit it provides to the agricultural industry over the next two years. USAID will guarantee as much as 50% of loans provided by Ecobank to Nigerian farmers and processors, Mojisola Oguntoyinbo, the head of agricultural business at Ecobank’s Nigerian unit, said by phone from Lagos. Separately, Netherlands-based Rabobank will help provide cheaper lines of…

ADDIS ABABA (Capital Markets in Africa) – Ethiopia plans to start building Africa’s largest airport at $5 billion within six months and continue the ascendancy of its national carrier, the most profitable on the continent. The new airport, 70 kilometers (43.5 miles) from the existing Bole International Airport in the capital Addis Ababa, will be able to handle as many as 100 million passengers yearly, Ethiopian Airlines Chief Executive Officer Tewolde GebreMariam told the state…

JOHANNESBURG (Capital Markets in Africa) – Telkom SA SOC Ltd. is in talks with 3,000 of its employees over potential job cuts as the South African carrier contends with falling sales in its landline business and a weak local economy. The former monopoly, which has more than 15,000 staff, started the consultation process with labor unions “to restructure our business for future competitiveness,” Pretoria-based Telkom said in an email. It is experiencing “declining performances in fixed voice, which…