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Big boost for Senegal as World Bank sign deals to finance four key projects worth $495m

Published

2 years ago

April 13, 2022

The economic fortunes of impoverished West African country, Senegal, is set to take a monumental leap after the World Bank on Tuesday, signed deals to finance four key projects worth a total of $495 million.

The deals, according to the global banking institution, will help improve education, electricity, economic development and road access to rural areas in the country which is undergoing serious economic downturn.

The World Bank considers the West African nation with a population of16.7 million as a lower-middle-income country, with its economy hit hard by border closures during the pandemic that affected tourism and delayed oil and gas extractions, while job opportunities and industries are only concentrated in the capital, Dakar, and a few other cities.

World Bank Director for Senegal, Nathan Belete, who announced the deals, described them as record breaking.

“One of the projects to improve the quality of the education system will be awarded $100 million and will benefit over 600,000 students.

“Another $45 million will fund a project to help develop the economy of the impoverished southern Casamance region, focusing on rural areas and including the construction of infrastructure resistant to the impact of climate change.

“Another $150 million will be disbursed to improve electricity access across the country, connecting 200,000 households to the grid and improving power services in schools, health facilities, and small and medium enterprises.

“The fourth project, worth $200 million, will focus on developing better road links to rural food producing areas in the northern and central regions,” Belete said.

Related Topics:Economy Featured Senegal World Bank

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TotalEnergies CEO to meet Mozambique president for further project discourse

Published

3 hours ago

October 3, 2024

Ifeoluwa Dada

To discuss the company’s proposed LNG project in Mozambique with the nation’s new president, CEO Patrick Pouyanne has announced he will travel to Mozambique later this month.

“The project remains profitable, we remain committed,” Pouyanne said at an investor presentation.

The $20 billion Mozambique LNG project has been delayed because of worries about violent upheaval in the area, although Pouyanne claimed there had been “progress on security” recently.

On October 9, Mozambicans will cast their votes in presidential and legislative elections that will almost certainly prolong the fifty-year rule of the ruling Frelimo party, which is fighting a protracted Islamist insurgency in one of the largest gas reserves in Africa.

Pouyanne went on to say that lenders had affirmed between 70% and 80% of a $14 billion finance package that supports the project.

“We are waiting on the green light on financing from three credit agencies, some are in Western countries where rules on gas have changed … as soon as that is in place we will move,” Pouyanne said.

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Tanzania’s central bank maintains 6% lending rate

Published

3 hours ago

October 3, 2024

Ifeoluwa Dada

Tanzania’s central bank announced on Thursday that it had left its benchmark interest rate at 6% unchanged.

The benchmark rate was maintained by the central bank at 6% in the two quarters leading up to September, up from 5.5% when the rate was first published in January.

Agriculture, construction, and manufacturing led real GDP growth to 5.3% in 2023, up from 4.7% in 2022. Private investments drove demand.

Tight monetary policy and food and energy price moderation reduced inflation from 4.3% in 2022 to 3.8% in 2023. Due to foreign cash shortages, the Tanzanian shilling fell 8% in 2023.

Despite mounting pressure on the shilling, consumer inflation has remained comfortably below the bank’s objective of 5%. August saw a rise in inflation from 3.0% year over year to 3.1%, according to information from the statistics office.

In recent weeks, many African countries announced monetary policy decisions. Nigeria raised its benchmark interest rate by an additional 50 basis points, to a new record high of 27.25%, Ghana reduced its benchmark monetary policy rate by 200 points to 27% at a normal meeting. while South Africa decreased its benchmark interest rate by 25 basis points to 8% after holding seven consecutive meetings at a 15-year high of 8.25%.