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South Africa plans new nuclear power station amid energy crisis

Published

12 months ago

December 12, 2023

In a new push to address its recent power crisis, South Africa plans to launch a bidding process for an extra 2,500 megawatts (MW) of nuclear power by March 2024.

This year, there have been days when businesses and homes have been without power for up to ten hours; this has negatively impacted South Africa’s economic output and prompted plans to increase generation.

Nevertheless, given that the first units are not expected to begin operating for another ten years, officials stated on Tuesday that the new nuclear power procurement is not a temporary solution.

“We are excited about the prospects, and we are confident about our ability to ensure that within a reasonable period of time we are able to announce preferred bidders,” Electricity Minister Kgosientsho Ramokgopa told a news conference.

The government has applied for a 20-year extension of Koeberg’s operating licence, which expires in July 2024 and is awaiting regulatory approval.

South Africa hopes to put the first unit of its new 2,500 MW nuclear project into service, according to senior energy ministry official Zizamele Mbambo.

“We must issue an open and transparent tender that makes sure there is cost competitiveness,” Mbambo added.

The South African economy grew by 0.4 percent between January and March this year largely as a result of crippling power cuts, volatile commodity prices, and a challenging external environment have contributed to the country’s weak growth performance.

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IMF mission concludes 4th loan program assessment in Egypt

Published

9 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.