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Egypt: AfDB approves $345m partial credit for Panda bond in boost to China-Africa relations

Published

2 years ago

May 21, 2023

Egypt will receive $345 million as Partial Credit Guarantee from the African Development Bank Group (AfDB) to improve its access to the Panda bond market.

The AfDB said the funds would help finance green and social projects and allow the country to raise the equivalent of $500 million in the Panda bond market, which deals with bonds denominated in Chinese yuan issued by foreign borrowers.

Egypt’s Minister of International Cooperation, Dr Rania A. Al-Mashat, while speaking on the latest deal, said the “new agreement with the African Development Bank provides an additional dimension to the strategic partnership, which is focused on promoting the transition towards renewable energy and financing sustainable infrastructure projects.

Issuing international bonds in an untapped new market, backed by the African Development Bank, helps diversify financing sources and builds on previous efforts, including the green bonds launched in 2020.” she added.

AfDB Director General for North Africa, Mohamed El Azizi described the approval as historic and stated that “the partial credit guarantee will enable Egypt to enhance its credit rating and catalyze financing from international investors on competitive terms and pricing.”

Egypt’s economy has been on a downward slide in recent years. The country is currently ranked 11th out of 14 countries in the Middle East/North Africa region, and its overall score is below the regional and world averages.

The bond is part of a recent partnership between China and Africa. Panda bond is a renminbi (RMB)-denominated bond issued in mainland China by a foreign entity such as a national government, local government, multilateral development bank, regional development bank or non-financial institution.

Related Topics:AFDB Egypt Featured Panda Bond

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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.”