Connect with us

VenturesNow

Scandal-ridden Finance Minister seeks exit from Ramaphosa’s cabinet; Rand tumbles

Published

on

South African Finance Minister Nhlanhla Nene has asked President Cyril Ramaphosa to remove him after he admitted to visiting the home of the Gupta brothers, friends of scandal-plagued former leader Jacob Zuma, Business Day said on Monday, sending the rand lower.

Nene has become a divisive figure after testimony he gave at an inquiry into allegations of corruption by the Guptas, in which he admitted to the previously undisclosed visits. He made a public apology about the matter on Friday.

Zuma and the Guptas, who face numerous allegations of using their friendship for mutual self-enrichment, have consistently denied any wrongdoing.

Business Day cited unidentified government sources as saying that Nene made the request to Ramaphosa at the weekend. Nene did not answer calls for comment.

“Government sources said Nene approached Ramaphosa after the highly negative public reaction to his apology to South Africans on Friday for the meetings with the Gupta family when he served under Zuma,” the South African newspaper said.

It said the issue was likely to be raised at a meeting of the ruling African National Congress party later on Monday.

The rand fell more than one percent on the report.

Nene is a key ally of Ramaphosa, who reappointed him finance minister in a cabinet reshuffle shortly after he became president earlier this year.

Ramaphosa has made clean governance and the kick-starting of an economy mired in recession top priorities.

Several ministers and government officials have been implicated in the widening graft scandals around the Guptas.

One common theme that has emerged is visits to the family’s sprawling Johannesburg property, which is why there has been public anger regarding Nene’s revelations.

Read also: Botswana seeks to escape middle income trap

Nene has also been praised by commentators for standing up to Zuma.

He told the inquiry he was fired by Zuma in December 2015 for blocking deals that would have benefited the Guptas, particularly a $100 billion nuclear power deal with Russia that could have crippled Africa’s most developed economy.

But Nene’s opponents say he was involved in corrupt deals with the Guptas when he was deputy finance minister and head of the state pension fund. He denies ever helping the Guptas.

Opposition parties have called for his resignation.

VenturesNow

Somalia secures $4.5bn debt relief from lenders

Published

on

After a decade-long process of negotiations and reforms with creditors, Somalia has finally secured a $4.5 billion debt write-off from global lenders as the enhanced Heavily Indebted Poor Countries (HIPC) Initiative has spared the nation from repaying its debt.

 

The World Bank reports that the country’s debt has significantly decreased from a peak of $5.2 billion to $600 million as a result of the action taken by multilateral and bilateral lenders, including the International Monetary Fund (IMF).

Commercial creditors have contributed $3 billion towards the debt relief, with multilateral creditors contributing $573.1 million, the World Bank’s International Development Association contributing $448.5 million, the IMF contributing $343.2 million, and the African Development Fund contributing $131 million.

Following the Bretton Woods institutions’y boards’ approval process, a historic announcement regarding Somalia’s debt forgiveness is scheduled to take place in Washington DC on December 13.

HIPC completion points were reached by 37 nations, with Somalia following suit after Zimbabwe and Sudan were left behind. Under the leadership of the current president, Hassan Sheikh Mohamud, Somalia began holding HIPC talks ten years ago, and the nation has continued on the reform path despite political obstacles.

Kristina Svensson, the country manager for Somalia at the World Bank, praised Mogadishu for its “remarkable” commitment to reform last week.

“There have been a lot of political challenges within Somalia, but this thing (principles of HIPC), has held it quite high,” she said.

“This is satisfactory for them (Somalia) to achieve debt relief,” said Ms. Svensson. “Both the World Bank and IMF as well as other international partners, have been essential to providing technical assistance to support the achievement of these triggers.”

Over the past few weeks, Somalia has achieved huge milestones in its efforts towards socioeconomic and political liberation. It recently joined regional bloc, East Africa Community (EAC), as it seeks strategic partnerships with neighbours.

Continue Reading

VenturesNow

IMF advises Nigeria’s central bank to raise Monetary Policy Rate

Published

on

The International Monetary Fund (IMF) has urged Nigeria’s central bank (CBN) to further hike Monetary Policy Rate (MPR).

The IMF Director of Communications, Ms. Julie Kozack, in Washington DC, United States of America,
on Saturday stressing that the liquidity mop-up being undertaken by the CBN was already addressing the high inflationary rate of over 27%, but the rate must be further adjusted at its next Monetary Policy Committee (MPC) meeting.

The IMF chief also commended recent policy actions on the removal of fuel subsidy and the unification of exchange rates by the Nigerian government.

Nigeria’s short-term interest rate was reported at 17.67 % pa in Oct 2023, compared with 8.67 % pa in the previous month. The data reached an all-time high of 22.95 % pa in Mar 2012 and a record low of 0.36 % pa in Nov 2020.

In her response to questions on Nigeria, she noted that “President Tinubu has implemented two bold and important reforms shortly after taking office.

“The first is on fuel subsidies. Nigeria’s fuel subsidies were costly, especially for the budget, and not well targeted to provide relief for vulnerable households, and so this was rectified. And the second was unifying of the official exchange rate and that removed long standing distortions of the multiple exchange rate system.

“You asked a specific question on inflation. Inflation in Nigeria is running very high. It reached over 27 percent in October, that is the year-on-year number.

“The Central bank, under its new leadership, has started to withdraw excess liquidity that was in the system and contributing to high inflation.

“The next Monetary Policy Committee meeting should further raise policy interest rate. So, the Central bank is taking action to try to address the high inflation problem. As we mentioned in our Article IV Consultation, which was held in February of 2023, raising revenue from the very current low revenue to GDP ratio of 9 percent is essential to create fiscal space for social and development spending. 9 percent of GDP is a very low revenue to GDP ratio, and it is really not high enough to be able to support strong social safety nets, and development spending, to help protect vulnerable households and also to meet Nigeria’s development needs.

”The 2024 budget aims to reduce the fiscal deficit while also creating space for these priority spendings, both on the social side and also on the development side.”

Continue Reading

EDITOR’S PICK

Strictly Personal7 seconds ago

Zambia’s Fiscal Dilemma, State Compensation Ethics and Treasury Stability, By Misheck Kakonde

The recent judgments overseen by the Attorney General in compensating individuals like Hon. Mwaliteta, Hon. Frank Tayali, Mr. William Banda,...

Politics15 mins ago

Uganda begins withdrawal of troops from eastern Congo DR

Uganda has started the withdrawal of 1,000 troops deployed for a regional peacekeeping mission in the Eastern Democratic Republic of...

Behind the News54 mins ago

Behind the News: All the backstories to our major news this week

Over the past week, there were lots of important stories from around the African continent, and we served you some...

VenturesNow56 mins ago

Somalia secures $4.5bn debt relief from lenders

After a decade-long process of negotiations and reforms with creditors, Somalia has finally secured a $4.5 billion debt write-off from...

Metro2 hours ago

President Hichilema warns Zambian procurement officials against corruption in handling govt contracts

Zambian President Hakainde Hichilema has warned procurement officers handling government contracts against engaging in corrupt practices while carrying out their...

VenturesNow7 hours ago

IMF advises Nigeria’s central bank to raise Monetary Policy Rate

The International Monetary Fund (IMF) has urged Nigeria’s central bank (CBN) to further hike Monetary Policy Rate (MPR). The IMF...

Metro9 hours ago

Nigeria’s VP Shettima admits hardship, poverty, pleads for patience

Vice President Kashim Shettima of Nigeria has become the first official in the President Bola Tinubu’s administration to admit that...

Sports1 day ago

South Africa to host Ireland in Rugby Two-Test summer tour

Current Rubgy World Cup champions, South Africa, will host Ireland, in a two-Test series in July, 2024, which will be...

Metro1 day ago

DR Congo: President Tshisekedi says Rwanda’s Kagame acting like Adolf Hitler

Democratic Republic of Congo President, Félix Tshisekedi, has taken a dig at President Paul Kagame of Rwanda, comparing him to...

Culture1 day ago

Koffi Olomide’s Kenyan show suffers setback over 2016 debt

A highly anticipated concert that was to feature Congolese Lingala maestro Le Grand Mopao, Koffi Olomide, in Nairobi, Kenya on...

Trending