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

Published

12 months 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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Food prices drive second straight monthly hike in Nigeria’s inflation

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

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MTN financial report reveals drop in group service revenue

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.