7th March 2024
Good morning. The IMF's injection of funds into Egypt's economy coincides with the country's currency policy shift, Uganda grapples with currency woes through interest rate adjustments, a U.S. court's decision against major companies sheds light on corporate responsibility and Ethiopian Airlines' Boeing deal signals a significant leap forward in African aviation. Here’s your Roosters Crow:
IMF Boosts Loan Program Amid Egypt's Currency Shift
The International Monetary Fund (IMF) ramps up its loan program with Egypt by $5 billion, coinciding with the country's decision to allow its currency, the pound, to trade freely. This strategic move aims to jumpstart Egypt's stalled economic program, marked by delays in privatization efforts and fostering private sector involvement. Seeking additional support, Egypt also eyes a $1.2 billion loan from the IMF's Resilience and Sustainability Facility. The IMF underscores the importance of a flexible exchange rate and structural reforms to bolster growth amidst ongoing economic challenges.
Uganda's Interest Rate Hike
Uganda's central bank responds to the local shilling's record depreciation by implementing a 50 basis points interest rate hike, bringing the rate to 10.00%. Deputy Governor Michael Atingi-Ego attributes the shilling's decline to offshore investors seeking higher yields elsewhere. Inflation forecasts are adjusted upward, with core inflation hitting 3.4% in February, closer to the 5% target. Despite economic resilience driven by favourable weather and oil sector investments, tighter monetary policies prompt downward revisions in future growth forecasts.
U.S. Court Rejects Congo Appeal Against Tech Giants
A U.S. federal appeals court dismisses an appeal against tech giants including Google parent Alphabet, Apple, and Microsoft over allegations of supporting child labor in Congolese cobalt mines. The ruling, upholding a 2021 dismissal, rejects claims by former child miners, stating the companies' cobalt purchases don't constitute direct involvement in forced labor ventures. While plaintiffs vow to continue seeking accountability, companies reaffirm their commitment to human rights in their supply chains.
Ethiopian Airlines' Boeing Deal: Charting New Heights in Aerospace
Ethiopian Airlines Group partners with Boeing to acquire eight Boeing 777-9 aircraft, with potential for 12 more, positioning the carrier as the first African adopter of the 777X. The deal underscores Ethiopian's commitment to fleet modernization and sustainability, with the 777-9 offering 10% better fuel efficiency and advanced features. Aligned with Ethiopian's Vision 2035, aiming for over 270 eco-friendly aircraft, the agreement symbolizes Boeing's longstanding partnership with Ethiopian, spanning 75 years and driving aerospace development in Africa.
