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Tunisia defends hike in fuel prices, three times in six months

Fuel prices in Tunisia have been raised for the third time this year. The last increment of 4% was effected on Friday. Earlier adjustments were made in January and March, 2018

Published

6 years ago

July 2, 2018

Africa News Watch

Fuel prices in Tunisia have been raised for the third time this year. The last increment of 4% was effected on Friday. Earlier adjustments were made in January and March, 2018.

The Tunisian government, led by Prime Minister Youssef Chahed, says it is seeking to reduce the public budget deficit.

However, watchers of the economy believe that the price reviews are aimed at meeting the requirements of international lenders, as the International Monetary Fund (IMF) had urged Tunisia to raise energy prices and the retirement age to reduce the budget deficit and support economic growth.

Fuel prices now stand at TND 1.925 ($0.741), up from TND 1.85 dinars, effective Saturday, according to an official statement by the energy ministry.

The government is determined to see the policy fully implemented in spite of concerns over its full import for inflationary trends in the country.

‘The State is obliged to increase the selling prices of certain petroleum products according to the significant rise in the prices of hydrocarbons on the international market, and also on the basis of the mechanism of automatic adjustment of the prices of these products, decided since 2008 and entered into force in 2016, ‘said Tuesday Minister of Energy, Mines and Renewable Energies, Khaled Kaddour.

The minister, who was speaking to journalists at the Kasbah’s government palace, said that the application of this mechanism requires an adjustment every three months or even less, either upwards or downwards, of selling prices of petroleum products at a rate not exceeding 5%.

‘The state bears a very heavy subsidy of petroleum products,’ he said.

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Nigeria has received $10.9 billion multi-sector investments from AfDB— Official

Published

4 days ago

July 23, 2024

Ifeoluwa Dada

Nigeria has received $10.9 billion from the African Development Bank (AfDB), comprising $4.9 billion in public and private sector initiatives.

AfDB Director-General of the West Africa Region, Lamin Barrow, said the bank’s Nigeria funding approvals total $10.9 billion since it started operations.

Barrow made the revelation at the Second Interactive Session and Workshop on Developing Bankable Business Proposals/Business Plans for Youths in Agriculture in Abuja on Monday.

It was part of the bank’s 60th anniversary celebrations with stakeholders. Nigeria is the AfDB’s largest shareholder, and the bank’s relationship with it has grown, Barrow said.

The AfDB invests in Nigeria’s energy, power, transport, water, and sanitation infrastructure.

“Over the last 60 years, the Bank has grown into a trusted partner and the continent’s premier development financial institution.

“Our cooperation with Nigeria has expanded over the years, especially considering that Nigeria is the largest shareholder.

“Since it started operations in the country, cumulative financing approvals have reached 10.9 billion dollars and our portfolio currently stands at 4.9 billion dollars supporting projects in the public and private sectors,” he said.

After taking office eight years ago, AfDB President Dr Akinwumi Adesina prioritized the High 5—Power, Feed, Industrialize, Integrate, and Improve Africa’s quality of life—Barrow added. He said these were accelerators for achieving the SDGs and Agenda 2063 ambitions. The projects and programs supported during this time have reportedly affected over 400 million individuals.

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Analysts expect Egypt’s economy to rise 4.0% in 2024/25

Published

4 days ago

July 23, 2024

Ifeoluwa Dada

A recent study that sampled seventeen economists by Reuters has predicted slower economic growth for Egypt in April after a $8 billion IMF accord in March.

The median projection for GDP growth in the fiscal year starting July 1 was 4%, down from 4.35% in April and 4.15% in January.

The poll predicted the GDP grew 2.9% in the fiscal year ending June 30. This is below their April and January predictions of 3% and 3.5%. Poll: 2025/26 growth should rise to 4.99%.

After the IMF agreement, Capital Economics’ James Swanston predicted slower growth due to tighter fiscal and monetary policies and a weaker pound.

“The overall net impact is that economic growth will be weaker this fiscal year, but there are reasons to be more optimistic on GDP growth from FY2025/26 onward,” Swanston said.

Egyptian tourism and Suez Canal revenue have slowed due to the Gaza crisis, which has cut Egypt’s foreign revenue by more than half.

Egypt’s planning ministry predicted 4.2% growth in 2024/25 on June 2. Analysts expect the Egyptian pound to fall to 49.50 per dollar by June 2025 and 52.50 by June 2026.

Before dropping it in March 2024, the central bank kept the pound at 30.85 per dollar. It’s roughly 48.40 per dollar.

The survey forecast 20.5% headline inflation in 2024/25 and 12.05% in 2025/26. In June, inflation dropped to 27.5% from a record high of 38.0% in September, exceeding the central bank’s objective of 5%-9%.

The analysts expect the central bank’s overnight lending rate to drop to 21.25% by June 2025 and 15.25% by June 2026.

Foreign money shortages have slowed the Egyptian economy. However, a $24 billion real estate transaction with the UAE in late February, a significant currency devaluation, and a $8 billion IMF accord in early March have mitigated that.