VenturesNow

Germany’s Volkswagen plans automotive hubs in Nigeria, Ghana

Published

6 years ago

September 3, 2018

German Automobile manufacturer, Volkswagen, has signed a memorandum of understanding (MoU) with Nigeria to turn the country into the “automotive hub” of West Africa.

The agreement was signed during German Chancellor Angela Merkel’s visit to Nigeria, with Okey Enelamah, minister of industry, trade and investment, present at the signing ceremony in Abuja.

The car manufacturer also signed an MoU with Ghana to explore the development of new mobility solutions in the country.

Mahamudu Bawumia, Ghanaian vice president, witnessed the agreement signed with his country.

According to a statement by Volkswagen on Friday, the agreement will see new plants being built in both countries, thereby expanding the automobile market in the continent.

Commenting on the proposed venture, Thomas Schaefer, head of Volkswagen’s sub-Saharan region, said: “Both memorandums of understanding demonstrate one thing: the seriousness with which Volkswagen takes its commitment to Africa.

“We are well positioned. The situation on the continent has stabilized, and the economy is moving forward. The final hurdles for the development of the automotive industry there have been removed as a result. This is a great opportunity for us.”

Volkswagen’s expansion agenda in Nigeria will include developing a training academy, in conjunction with the German government.

A plan to develop a comprehensive Volkswagen vehicle and service network in the country is also in the works, but “subject to commercial viability”.

The statement said the Nigerian government has pledged to “accelerate the passage of Nigerian automotive policies”.

“This includes the gradual transition from the importation of used cars to the manufacture and distribution of new passenger vehicles,” the compa

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 days ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

4 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.