Making a Difference: Sub-Saharan Africa’s Quest for Financial Stability

This week in sub-Saharan Africa, several countries made significant strides towards resolving their debt issues and recovering stolen funds. On Monday, Zambia announced that they had reached an agreement with private creditors to restructure $3 billion of international bonds, marking a major step forward in resolving the country’s debt problems after defaulting over three years ago.

In Kenya, Kenya Airways reported on Tuesday that they had swung to an operating profit of 10.53 billion shillings, or over $80 million, marking their first profit since 2017. This profit was driven by a 53% increase in revenue and a 35% increase in passenger numbers. The airline had faced insolvency in 2018 due to debts accumulated during an expansion drive.

Nigeria is seeking an international arrest warrant for Binance’s regional manager for Africa who fled custody last week. The country has also filed tax evasion charges against the cryptocurrency platform. Binance has confirmed that they are working with authorities to address the situation.

The Commercial Bank of Ethiopia announced that they have recovered more than three-quarters of the $14 million lost due to a software glitch that allowed customers to withdraw more funds than they had in their accounts. The bank’s president blamed university students for the “theft” and stated that names of over 500 people who have not returned the money have been published.

In Kenya, there is concern among second-hand clothes sellers about a proposal by France, Denmark, and Sweden to restrict imports of used clothing from the European Union. The EU argues that clothes that cannot be resold end up in dumps, but Teresia Wairimu Njenga, chair of the Mitumba Consortium Association of Kenya, emphasized that used clothes support livelihoods for two million Kenyans and generate tax revenues for the country.