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IMF lends $261 million to Burundi for economic recovery

Published

2 years ago

April 11, 2023

For the first time in eight years, Burundi has received $261 million from the International Monetary Fund (IMF) which will help with its economic recovery.

The IMF said it had reached an agreement on a 40-month $261.7 million arrangement with Burundian authorities under the Extended Credit Facility (ECF). ECF provides medium-term financial assistance to low-income countries (LICs) with protracted balance of payments difficulties.

“This is the first Upper Credit Tranche-quality programme for Burundi supported by the Fund since 2015. The programme aims to support a calibrated macroeconomic policy mix to restore external sustainability, and strengthen debt sustainability, while supporting economic recovery from shocks and creating fiscal space for accelerated and inclusive growth”, IMF said, adding that discussions held with the Burundian authorities covered recent macro-developments, the impact of the various domestic and external shocks, and Burundi’s macro-policy plans and structural reform agenda.

The IMF also revealed that Burundi’s real GDP growth is estimated to have slowed down to 1.8 percent in 2022 (from 3.1 percent in 2021) but is projected to rebound to 3.3 percent in 2023.

The inflation rate in 2022 averaged 18.9 percent and has continued to scale as it peaked at 28.6 percent year-on-year at the end of January, as food prices hit the roof but are projected to remain around 18 percent in 2023.

“External rebalancing and unwinding monetary financing. The central bank (BRB) is committed to recalibrating monetary and external policies to address the below-adequacy FX reserves (1.5 months of imports at end-2022) and large parallel FX market premium.

Despite the odds however, the African Development Bank rates Burundi’s economic outlook as favorable, with projected GDP growth rates of 3.6% in 2022 and 4.6% in 2023 owing to the continuing recovery of agriculture and public investment.

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Moroccan annual inflation rises to 0.8% in November

Published

2 days 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

3 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.”