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IMF to begin disbursement of $1.3 billion to Zambia

Published

2 years ago

May 6, 2023

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva has revealed that the body will soon begin the disbursement of the next batch of its $1.3 billion financing program to Zambia.

Georgieva told reporters in the Kenyan capital that “what’s left is for creditors of Zambia to agree on a path forward”. The IMF “expect to be able to disburse for Zambia very soon,” she added.

China is the largest bilateral creditor for many African nations including Zambia.

The law firm offering advisory to Zambia on the debt restructuring, White and Case, last month revealed that the country would send its first fully-formed debt restructuring plan to China and other government creditors “very soon”.

Georgieva further revealed that “the Chinese premier and former premier confirmed that the Chinese were committed to debt resolution for Zambia when I met them.”

According to Georgieva, 19 out of the 35 countries in sub-Saharan Africa were at or near the risk of debt distress. She cited the pandemic’s effects, Russia’s conflict in Ukraine, high-interest rates, and weaker currencies.

She revealed that the processes for debt restructuring for other African countries like Ghana and Ethiopia had been delayed by a “cacophony” caused by the diversification of creditors in recent years. She however insisted that “Kenya is definitely not among them,” while citing a sustainable debt load and solid hard currency reserves.

Related Topics:Debt restructuring Featured IMF Zambia

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Moroccan annual inflation rises to 0.8% in November

Published

4 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

5 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.”