East African nations seek to raise budget finance

Jun 09, 2010

The sale of sovereign bonds is one step that is set to be taken by some East African nations in order to boost their budgets over the next year.

Bloomberg reports Kenya, Uganda and Tanzania will tomorrow (June 10th) release details of how they intend to fill their deficits in the year to June 2011. And all three will opt to act on the financial markets in order to secure funding, which is becoming more difficult to acquire from other sources as the eurozone financial crisis is prompting governments around the world to cut their aid packages for African nations.

"Donor aid is mostly on the decrease as donor countries find themselves in serious trouble," Ridle Markus of Barclays-owned Absa Group was quoted by the news source as saying. Figures released by the African Development Bank last month indicated East African nations are leading the way in terms of economic recovery, with these countries expected to record average growth of six per cent in the current financial year.