Survivor  fund  Yobe State SUBEB recruitment portal

HOT NEWS!! Tears Flow As Lightning Kills Ten Children

1 min


 

 

Business correspondent, BBC News

The cost of borrowing for businesses and consumers across Africa continues to fall as banks cut interest rates on loans.

Governments across the continent are hoping cheaper lending rates will encourage more businesses to take out a loan to invest in rebuilding after the pandemic.

In Kenya the banks have cut the cost of credit to all time lows, taking their cue from reductions in the benchmark rate set by the Central Bank of Kenya, which says lending rates have fallen below 12%, their lowest since 1991.

But breathing new life into the economy, after business activity stalled during lockdown, is being hampered by banks being cautious about lending, after many companies in financial difficulties asked for repayments to be suspended.

READ ALSO  Woman drags husband to court over refusal to have more children

Loan defaults in Kenya have risen to a 13-year high, as industries have scaled back amid the pandemic, cutting jobs or putting staff on unpaid leave.

Data from the Central Bank of Kenya shows credit to the private sector expanded more than 7% in the year to June, half the ideal rate for the economy.

Governments hope lower interest rates will encourage businesses to borrow for new investment, but the Kenya Bankers Association has warned companies trying to survive will not take out a loan, just because it is cheaper.

Meanwhile in Uganda businesses are being encouraged to lease equipment and pay for it in stages, rather than taking out a big loan to buy assets outright, which would add to their debt burden.

READ ALSO  Wife Beats Husband Mercilessly After Refusing To Pay Rent And Buy Food For Children (VIDEO)

Addad Iraguha, the Head of Asset Finance at Absa Uganda and the President of Uganda Leasing Association, told the BBC “the pandemic has created both opportunities and challenges for the leasing industry”.

He says investors should recognise the opportunities created by the growing demand for healthcare products amid the pandemic

RSS
Jobs Vacancies in Nigeria


Like it? Share with your friends!

Jake Clifford

Jake Clifford is a Nigerian Born blogger and a fast growing Journalist, whose aim is to inform Nigerians with happening across Nigeria. Send story tips to him via [email protected] or

0 Comments

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.