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World Bank commits $12 billion to Kenya’s development over next 3 years

Published

1 year ago

November 21, 2023

The World Bank said it has committed $12 billion to Kenya’s development over the next three years, potentially a major boost to the East African country’s strained finances.

The bank said that the entire sum was contingent upon the executive directors’ approval and other variables that might affect the bank’s ability to lend money.

The $12 billion, according to World Bank Country Director, Keith Hansen, included “what we expect to provide in the coming three years” in addition to the funds Kenya currently had available from the Multilateral Investment Guarantee Agency, the International Development Association, the International Bank for Reconstruction and Development, the International Finance Corporation, and the International Development Association.

“This will likely include Development Policy Operations as well as new investments in a wide range of sectors such as energy, health, transport and water,” Hansen said.

Frequent droughts brought about by climate change and the COVID-19 pandemic’s after effects have put a strain on Kenya’s public finances.

“The World Bank is fully committed to supporting Kenya in its journey to become an upper-middle-income country by 2030.

“Subject to the World Bank Executive Directors approval of new operations and to factors that may affect the bank’s lending capacity, this implies a total financial package of $12 billion over the next three years”, the bank said.

In a similar move last week, the International Monetary Fund (IMF) confirmed that it had reached a staff-level agreement with Kenya, unlocking immediate access to a $682.3 million credit tranche.

The agreements come as Kenya grapples with acute liquidity challenges caused by uncertainty over its ability to access funding from financial markets before a $2 billion Eurobond matures next June.

Kenya is among the African countries facing financial difficulties. The country is currently experiencing financial hardships largely as a result of having to use nearly half of its income to settle debt.

Related Topics:debt burden Featured Kenya World Bank

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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.”