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AU Finance Committee meets in Zambia as debt burden weighs heavy on Africa

Published

2 years ago

July 20, 2022

The Africa Union in its 5th Ordinary Session of the Specialized Technical Committee on Finance, Monetary Affairs, Economic Planning and Integration is focused on “improving Africa’s access to Capital: Debt Management and the Rising Influence of Credit Rating Agencies.”

The summit which started on Monday is currently ongoing in Lusaka, Zambia till Friday.

According to the AU, in recent years, an increasing number of African economies are experiencing high levels of debt and debt burdens. Most recent are cases in Chad, Zambia and Ethiopia who have been pleading the assistance of the International Monetary Fund to facilitate its debt restructuring with creditors.

Borrowing increased during the pandemic to finance immediate public health needs and to protect lives and livelihoods. The debt situation in Africa is now compounded by the Russia-Ukraine conflict, undermining the debt sustainability across African countries.

Many African countries depends on international creditors to fund critical aspect of their economies. External debts are not as contentious in many African states as the discipline to expend the funds appropriately on development centred projects, which has always been a course for concern amidst the nature of corruption that characterizes the political and public system in Africa.

The AU summit will also consider, the evolution and State of Africa’s Debt; deliberate on emerging frameworks for debt restructurings and debt relief initiatives including write-off of the debt; Exchange lessons on promoting transparency and accountability in debt management, among other considerations.

Africa must explore policy options and strategies for prudent debt management and debt sustainability. How close can it get with resolutions from the summit?

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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.”