Connect with us

VenturesNow

Senegal reaches agreement for $217 million loan with IMF

Published

on

West African country, Senegal has reached an agreement on economic and financial policies with the International Monetary Fund (IMF) under which the country will receive a $217 million loan.

The deal was sealed after a delegation of the IMF visited Senegal this week.

The agreement according to the IMF is subject to subject to the approval of the IMF’s executive board in June by the monetary organization.

The IMF said the Senegalese economy regained its pre-pandemic trend path in 2021, led by strong industrial production and the services sector. Real GDP growth is estimated at 6.1 percent, about one percentage point higher than previously anticipated.

“Average inflation was contained at 2.2 percent, though food prices have increased by 2.9 percent. Despite shortfalls in tax revenues, budget execution was broadly in line with target with an overall fiscal deficit of 6.3 percent of GDP.” The IMF remarked.

The loans targeted at helping authorities cushion the impact of soaring fuel and food prices, made worse by the war in Ukraine, and the economic slowdown of Senegal’s main trading partner Mali, which is facing sanctions for failing to restore democracy since a 2020 coup, the IMF said in a statement late on Thursday.

“The authorities have adopted a supplementary budget to incorporate additional spending for energy subsidies, public wages, cash transfers, and security,” the IMF said.

Policy measures have been agreed to avoid budgetary slippages and ensure fiscal deficit will still converge to 3% of GDP by 2024, it added.

The Senegalese economy was hit hard by border closures during the thick of the Covid-19 that affected tourism and delayed oil and gas extractions.

 

VenturesNow

World Bank predicts Mozambique economy growing at 5.7% on average

Published

on

The World Bank has predicted that the economic growth in Mozambique is expected to accelerate in the medium term averaging 5.7% between 2022 and 2024, as a result of demand recovery and economy benefits from the start of liquefied natural gas production this year.

In a report released Thursday, the World Bank said the start of LNG production at the offshore Coral Project and the expected resumption of other LNG projects would help spur the southeast African nation’s growth in the intervening year.

The World Bank said a three-year extended credit facility arrangement agreed by Mozambique with the International Monetary Fund (IMF) and budget support from other partners would further help to strengthen its economic recovery.

The IMF’s executive board had, in May, approved a $456 million program for the country, the first since the global lender suspended support to Mozambique six years ago.

However, the World Bank warned that risks remained for Mozambique’s growth, especially from rising import prices due to the conflict in Ukraine, a possible surge in COVID infection waves, and insurgency in the north.

Continue Reading

VenturesNow

Nigeria, Algeria, Niger to revive Saharan gas pipeline talks

Published

on

The governments of Nigeria, Algeria and Niger Republic have held talks to revive a gas pipeline project across the Sahara which had been put on hold for over 40 years, with the potential opportunity for Europe to diversify its gas sources as the world faces a short fall as a result of the Russian-Ukraine war.

The three countries, represented by their various Petroleum Ministers, met in Abuja, Nigeria’s capital on Wednesday and resolved to set up a task force to revive the project and designated an entity to update the feasibility study.

A statement by Niger’s Oil Ministry after the two-day meeting stated that the Trans-Saharan gas pipeline project estimated at $13 billion, could send up to 30 billion cubic metres a year of supplies to Europe.

The statement added that the energy ministers of the three countries will meet again in Algiers at the end of July to “validate the proposals of the newly installed task force.”

“The pipeline should allow Europe to diversify its sources of natural gas supply but also allow several African states to access this high value energy source,” the statement said.

“With a length of 4,128 kilometres (2,565 miles), the pipeline would start in Warri, Nigeria, and end in Hassi R’Mel, Algeria, where it would connect to existing pipelines that run to Europe,” it said.

The gas pipeline idea was first proposed more than 40 years ago with an agreement signed between the three countries in 2009, but progress stalled stalled following a lack of follow through by the countries.

Earlier this month, Nigeria also took steps to revive another gas pipeline project that would pass through West Africa, Morocco to Europe.

Continue Reading

EDITOR’S PICK

Politics3 hours ago

Weeks after justices protest, Nigeria’s Chief Justice, Tanko Muhammad resigns

Nigeria’s Chief Justice, Justice Tanko Muhammad, has resigned. Sources confirmed that Justice Muhammad resigned on Sunday night, citing ill-health as...

Culture4 hours ago

Nigerian singing sensations, Wizkid, Tems, win 2022 BET Awards

Nigerian music stars, Ayo Balogun and Temilade Openiyi, popularly known as Wizkid and Tems respectively, were the biggest African winners...

Metro5 hours ago

Nigeria: Zamfara state government wants gun licenses for residents over insecurity

The Commissioner for information in one of Nigeria’s Northern states, Zamfara state says residents in the state can start approaching the police command...

Metro8 hours ago

Ex-Liberian rebel warlord charged in US over attempt to obtain citizenship fraudulently

A former commanding general of the Armed Forces of Liberia (AFL), a notorious rebel group during the West African country’s...

Politics20 hours ago

18 years after suspension, Zimbabwe lobbys for readmission into Commonwealth

Southern African Zimbabwe has continued with lobbying for readmission 18 years after it was thrown out of the body over...

Politics21 hours ago

Malian military leader signs election law that will allow him contest in 2024: Is this deja vu?

Leader of the Malian military junta, Col. Assimi Goita, has signed a new law which will pave the way for...

Politics21 hours ago

South Africa: President Cyril Ramaphosa arrives Germany for G7 Summit

South Africa’s president, Cyril Ramaphosa arrived in Munich, Germany on Sunday for the G-7 summit. According to the South African...

Metro21 hours ago

Spanish PM, Pedro Sanchez, blames ‘Mafia’ for human trafficking after African migrants’ deaths at Morocco/Melilla border

Spanish PM, Pedro Sanchez, blames ‘Mafia’ for human trafficking after African migrants deaths at Morocco/Melilla border The Prime Minister of...

Metro21 hours ago

South Africa: Eskom announces ‘Stage 4’ power cuts

South Africa’s state-owned power utility, Eskom says it will continue with “Stage 4” power cuts until Wednesday. The power rationing has been through 3...

Metro22 hours ago

Tragedy as 22 die in South African night club

At least 22 people have died from exposure to poisonous substances in a popular nightclub in East London, South Africa....

Trending