Mozambique: Bank reduces lending rate

Published Oct 18, 2013

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Mozambique

Bank reduces lending rate

Mozambique’s central bank has cut its main lending rate by 50 basis points to 8.25 percent, saying this was consistent with meeting economic growth and inflation targets, according to a statement posted on its website yesterday. The Bank of Mozambique noted that data from the national statistics agency pointed to a decline in business confidence, as shown by the economic climate index, reflecting a deteriorating outlook for demand. The International Monetary Fund expects economic growth to moderate to 7 percent for the country this year, from 7.4 percent last year. Consumer inflation quickened slightly to 4.52 percent year on year in September from 4.34 percent in August and was well up from a rate of about 1.5 percent a year ago, data from the official statistics agency showed earlier this month. – Reuters

Kenya

State eyes 10% stake in mines

The Kenyan government intended to hold a 10 percent stake in large mining concessions under a planned law aimed at making more money from the sector, Mining Cabinet Secretary Najib Balala said yesterday. “The bill is at the cabinet level. The bill also envisages there will be a 10 percent free carrying interest on all larger mining concessions. And this will be held by the government through the national mining corporation,” Balala told a mining conference in Nairobi. He did not say what these mining concessions were or if the bill would affect existing mining licences. Since gaining independence from Britain in 1963, successive Kenyan governments have failed to fully exploit the country’s mining potential, and foreign exploration companies have been discouraged by poor infrastructure and an outdated legal framework. – Reuters

Niger

Tycoon to build cement plant

Nigerian billionaire Aliko Dangote planned to spend $350 million (R3.4 billion) to build a new cement plant in Niger as part of a continent-wide drive to boost output, Africa’s richest man said on Wednesday following a meeting with the country’s president. Dangote Cement, Africa’s largest cement producer, said last year that it was investing $5bn to build cement plants in Africa and was targeting production of 55 million tons by 2016. Dangote said he had met with President Mahamadou Issoufou in Niamey late on Wednesday. “I announced to the head of state my intention to build a cement plant worth $350 million which will produce 1.5 million tons (annually),” Dangote told journalists following the meeting. “The realisation of this project will create 6 000 to 7 000 jobs.” – Reuters

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