VenturesNow

Somalia confirms debt relief of over $684 million from Russia

Published

1 year ago

July 27, 2023

Somalian officials have confirmed that Russia has granted debt relief on over $684 million owed by the country.

The deal for debt forgiveness was finalized on the sidelines of the ongoing Russia-Africa summit in St Petersburg, Russia.

Somalia’s Egeh and Russian deputy finance minister, Timur Maksimov represented their countries at the signing of the agreement which included Paris Club loans.

After decades of civil strife, Somalia is attempting to obtain comprehensive external debt relief through the Heavily Indebted Poor Countries (HIPC) Initiative of the International Monetary Fund (IMF) and World Bank.

Somali Finance Minister, Bihi Egeh, in a post on the ministry’s social media account, noted that the relief “will play a big role in the completion of the country’s debt forgiveness process.”

The agreement may help counter Western efforts to isolate Moscow for its invasion of Ukraine, being part of the summit in St. Petersburg to improve ties with African countries.

In spite of Western sanctions, which he claimed made it more difficult for Moscow to export its food and fertilizers, Russian pPresident, Vladimir Putin promised African leaders at the summit on Thursday that he would give them tens of thousands of tonnes of grain within months following the controversy around its withdrawal from the Black Sea grain deal.

According to the World Bank, a gradual shift from humanitarian aid to development strategies is required in Somalia so that the most vulnerable people can receive urgent relief thanks to the fusion of national social safety net and humanitarian systems, a unified perspective and method for monitoring and evaluating performance, and backing for policy.

The country might complete the HIPC process by the end of 2023 if it keeps up its steady reform progress, the IMF said in October. At that point, it would be able to reduce its debt from $5.2 billion to roughly $550 million.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

1 day 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.”