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17 African countries benefit as China cancels 23 interest-free loans

Published

2 years ago

August 24, 2022

Seventeen African countries are to benefit from the benevolence of the Chinese government as it plans to write off a debt package for various nations by the end of the year.

The beneficiary countries include Botswana, Burundi, Rwanda, Cameroon, the Democratic Republic of Congo, and Mozambique.

Others are Angola, Uganda, South Africa, Zambia, Ethiopia, Kenya, Somalia, Djibouti, Niger, Eritrea, and Cameroon

The Chinese Foreign Minister, Wang Yi, made the announcement on Wednesday when he unveiled what was described as a “minor debt relief package” for 17 African countries by writing off 23 interest-free loans that were supposed to be due at the end of the last year.

The move, according to the Chinese government, is meant to aid poor African countries indebted to China to ease off their debts as well as canceled a number of zero-interest loans to African governments in recent years.

The Asian giant also announced it would channel $10bn from its share of a recent International Monetary Fund Special Drawing Rights (SDR) mechanism to the African continent.

“We are prepared to, through the IMF’s two Trusts, re-channel 10 billion US dollars of its SDR to Africa, and encourage the IMF to direct China’s contributions to Africa”, said Wang at a summit on the financing of African economies held in France.

The IMF’s SDR has allowed $650bn of cash to be accessed by IMF members, in order to help deal with economic fallout from the Covid-19 pandemic and with the effect of the pandemic in Africa, China, which has become the major benefactor in the continent is doing everything possible to become a part of a wider geopolitical contest of influence on the continent.

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Moroccan annual inflation rises to 0.8% in November

Published

21 hours 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.”