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South Africa, World Bank in talks for $1bn loan amid power crisis

Published

1 year ago

October 14, 2023

Amidst South Africa’s recent electricity challenges, the World Bank has hinted that talks are on for a potential $1 billion loan to revamp the country’s energy sector.

The bank says the loan will help enable the country reform its energy sector as the country tries to overcome record power cuts and load shedding that are hurting the economy.

According to Marie Francoise Marie-Nelly, the bank’s director for South Africa, the loan, which will go to the government rather than the state-owned Eskom, is “under consideration.”

The World Bank loan would also aid South Africa in making a “just transition” away from coal, ensuring that those who are most vulnerable do not suffer, stated Marie-Nelly.

She said the government was “also looking at the broader climate agenda, including looking at the carbon tax.

“It is going to come very soon,” she added, declining to specify a timeframe”.

Due to the frequent breakdown of Eskom’s outdated coal-fired plants, South Africa is currently experiencing its greatest power crisis. While stifling economic expansion, rolling power outages have fuelled private investment in renewable energy.

“It’s a policy development loan which supports critical reforms,” Marie-Nelly said of the potential World Bank funding. “There’s a particular focus on transmission, because it is a stumbling block in terms of bringing new (capacity) that is going to be built mainly by the private sector.”

Being one of Africa’s most industrialized economies, the power outages have threatened businesses and the general economy of the country. One of its leading companies, Tiger Brands recently revealed that its revenues were expected to drop due to the prolonged power challenges.

Related Topics:Featured loan South Africa World Bank

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Moroccan annual inflation rises to 0.8% in November

Published

17 hours 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.”