6 African Business April 2020
Impact of coronavirus
Kenya’s central bank governor said that the country’s banks will allow borrowers to extend their loans for up to year if they get into difficulties as a result of the coronavirus. Small and medium-sized enterprises in distress will also be allowed to restructure their loans without cost in a bid to avoid a health crisis becoming a financial crisis, said Patrick Njoroge.
International football matches postponed Sports events across the continent have been cancelled or postponed in a bid to control the coronavirus pandemic. The Confederation o f African Football postponed two rounds of the 2021 Africa Cup of Nations qualifiers scheduled for March 25-31. The Federation said it had indefinitely postponed the African Nations Championship 2020 tournament scheduled for April in Cameroon.
Central Bank of Kenya extends loans
Safaricom waives fees for M-Pesa transactions On 17 March, Kenyan telecoms giant Safaricom agreed to waive fees for M-Pesa transactions below KSH1,000 ($10) for 90 days in a bid to keep payments moving during the coronavirus crisis. The initiative followed a directive by President Uhuru Kenyatta to explore ways of deepening mobile money usage to reduce the risk of spreading the virus through the physical handling of cash. The daily transaction limit will also be more than doubled.
Central Bank of Nigeria creates fund to combat coronavirus Nigeria’s central bank has created a $163m fund to combat the impact of coronavirus. The support will allow banks to give their customers more time to repay loans, and will provide credit support for the health sector, including loans to pharmaceutical companies and firms building clinics and hospitals. The country will postpone all non-critical spending and delay a $3.3bn eurobond offering. Nigeria’s budgetary assumption of $57 a barrel has been decimated by Brent crude prices of around $30 a barrel.
Emerging C ap i t a l P a r t ne r s buys SA Burger King franchise
Burger King in South Africa generated a profit of R11.7m last year