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Kenya, Tanzania to miss out on China’s debt-relief package. Here’s why

Published

2 years ago

August 28, 2022

Following the decision of the Chinese government to grant debt-waiver to 17 Africa countries last week, Kenya, Tanzania could miss out on the debt relief arrangement.

The countries will miss out as result of their lower-middle-income status even as the East African nations grapple with a growing debt burden.

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 some-worth economic growth in the 2 countries which transited them from low-income to lower-middle-income status accounts for their exclusion from the waiver.

Kenya was left out of the deal as it is classified as lower-middle-income.

Tanzania also transitioned from low-income to lower-middle-income status in July 2020 after experiencing over 20 years of sustained economic growth.

Tanzania’s national poverty rate fell from 34.4 to 26.4 percent between 2007 and 2018 while the extreme poverty rate dropped from 12 to eight percent, according to the World Bank.

Kenya joined the league of the world’s lower-middle-income nations in 2014, having crossed the UN’ $1,045 gross domestic product per capita threshold after rebasing its economy.

According to the International Monetary Fund, China is now the largest official bilateral creditor in more than half of the Debt Service Suspension Initiative (DSSI) countries and will, therefore, play a key role in debt restructuring for those economies.

Related Topics:China Featured Kenya Tanzania

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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.”