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IMF commends Tanzania’s economic reform plan

Published

10 months ago

August 3, 2023

Bo Li, the Deputy Managing Director of the International Monetary Fund (IMF), has praised the Tanzanian government’s efforts to carry out the nation’s economic reform plan.

“I commended the authorities’ commitment to preserving Tanzania’s macroeconomic stability in a challenging global environment,” he said in a statement.

“The authorities’ swift policy response helped contain inflation and safeguard the economy against spillovers from the war in Ukraine,” Li said.

In order to help create the fiscal space required to finance social spending and priority investments, such as scaling up investment in human capital through higher spending on education and health, the IMF also urged Tanzanian authorities to improve domestic revenue mobilization through tax reforms.

Tanzania’s overall access under the programme now amounts to around $304.7 million after the IMF finished the first evaluation of the Extended Credit Facility (ECF) programme in April.

But there has been relative economic growth. For 2022, the World Bank estimated GDP growth at 4.6%, marginally higher than the 4.3% growth in 2021.

Tanzania is currently battling a population explosion. According to census results, the population increased by 37% between 2012 and 2022, reflecting an average annual growth rate of 3.2% higher than its economic growth, the third-highest population growth rate in the world.

Tanzania’s Finance Minister, Mwigulu Nchemba, has projected that the country’s economy will grow faster this year compared to 2022. According to forecasts, Tanzania’s GDP will grow by 5.2 percent this year as global commodities price shocks abate and the business climate improves.

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Uganda discusses power line to South Sudan with China’s Sinohydro

Published

2 hours ago

May 15, 2024

Ifeoluwa Dada

According to the president’s office, Uganda is in negotiations with Sinohydro Corporation Limited of China to build a $180 million power transmission line that would enable Uganda to export electricity to South Sudan, which is severely short on energy.

Ugandan President Yoweri Museveni received a group led by Vice President of Sinohydro Corporation Yang Yi Xin on Monday as part of the negotiations, according to a late-morning statement from Museveni’s office.

The project, according to the statement, will entail building a new substation and expanding two existing ones in addition to building a 138-kilometre high-voltage transmission line to provide power to South Sudan.

“We are very much willing to help develop this project with the required finance if needed,” Xin was quoted as telling the president.

The statement stated that Museveni endorsed Sinohydro’s proposal to carry out the project. Uganda and South Sudan inked a power sales deal in June of last year, enabling Uganda to sell electricity to South Sudan.

To enable Uganda to export electricity to South Sudan, the two nations inked a power sales deal in June of last year. The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on the River Nile in Northern Uganda that is meant to be the source for electricity exports to South Sudan.

VenturesNow

Uganda considers nuclear energy to meet increased electricity demand

Published

4 hours ago

May 15, 2024

Ifeoluwa Dada

Uganda’s Ministry of Energy and Mineral Development announced on Tuesday that it was collaborating with the International Atomic Energy Agency (IAEA) to develop nuclear energy in the country as power demand rises.

Irene Batebe, permanent secretary of the ministry, stated that the government, with the assistance of the IAEA, is investigating and evaluating uranium deposits to ensure a sustainable supply of nuclear fuel for the projected nuclear power plants and research reactors.

“Uranium is the most widely used nuclear fuel material in nuclear power plants and research reactors and is required for Uganda’s nuclear power program.

“The planned nuclear power capacity will require about 4,000 tons of Uranium annually when fully operational. Thus, there is a need for sustainable sources of uranium,” she said at the opening of the nine-day meeting with the experts from the IAEA.

Batebe stated that the government is modifying the Atomic Energy Act of 2008 to tighten the legal framework for the exploration, mining, and processing of nuclear fuel reserves. She stated that even if completely exploited, the country’s electricity generation capacity from hydro, biomass, geothermal, and peat will fall short of Uganda Vision 2040 ambitions.

“To meet our development targets, nuclear energy among other sources must be integrated in the electricity generation mix,” she said.

The Cabinet approved the Energy Policy for Uganda, 2023 in April 2023, which envisions the long-term development of 52,481 MW of generation capacity to meet future demand, with nuclear power accounting for 24,000 MW.