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World Bank approves $500 million loan for Egypt to mitigate wheat shortage

Published

2 years ago

June 30, 2022

The World Bank Board of Executive Directors, has approved a USD 500 million loan to Egypt Bank to help finance its wheat purchases as prices skyrocket because of the Russian invasion of Ukraine.

Egypt’s international cooperation ministry made the announcement on Wednesday revealing that the funds will primarily support the country’s wheat purchases to help the government maintain a strategic reserve and utilize the investments made in raising the country’s grain storage capacity.

A statement by the World Bank quoted the minister, Dr. Rania Al-Mashat, “the project supports the government’s strong commitment to ensuring that the needs of citizens continue to be met even amid a very challenging global context caused by concomitant crises such as COVID-19 and the war in Ukraine.”

“In addition to ensuring sustained food security, this project supports national climate efforts by increasing agricultural resilience.”

Wheat is fundamental to the Egyptian diet, with about 70 per cent of the population relying on subsidised bread to feed their families. The North African country is the world’s top importer of wheat, and has had its supply suffer since Russian invasion of Ukraine disrupted crucial supply from the two major exporting countries.

Russia is the world’s largest wheat exporter and Ukraine is among the top five. Global grain markets are facing turmoil following war between the two European countries with the two countries accounting for about 30 percent of the world’s wheat supply.

Egypt’s Prime Minister, Mostafa Madbouly, announced in March that the country will diversify its sources of wheat to avoid relying on what he described as “specific sources” for this product.

Related Topics:Egypt Featured wheat World Bank

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”