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Despite political crisis, IMF insists Senegal ‘better positioned’ to navigate investors’ concerns

Published

10 months ago

February 16, 2024

According to the International Monetary Fund, Senegal may be in a better position than some nations to handle investors’ concerns, despite the recent case of political unpredictability following President Macky Sall’s postponement of a presidential election.

The sudden decision to push back the election scheduled for February 25 until December threw the once-stable nation into disarray and fuelled protests against what many perceive to be an attempt to extend Sall’s term in office and weaken one of the few remaining democracies in coup-affected west Africa.

A representative of the IMF quoted by Reuters stated in email comments that Senegal will be less dependent on risky private debt as a result of a planned reduction in the issuance of more expensive syndicated loans, which make up a sizable component of the country’s funding under concessional terms.

“Recent political developments in Senegal have created some uncertainty, potentially impacting investor confidence and economic activity,” the IMF spokesperson said.

“While potential investor caution could lead to higher interest rates and tighter financial conditions, … Senegal may be better positioned than some to navigate potential investor concerns due to its diversified and less volatile funding sources.”

“Senegal does not plan further debt issuance in 2024, a move that would require parliamentary approval,” the IMF spokesperson said.

The IMF predicted in December that Senegal’s public debt-to-GDP ratio would drop to 72.5% this year from a projected 79.6% last year. In June of last year, Senegal was granted a three-year loan by the IMF totaling approximately $1.9 billion.

According to the World Bank, Senegal’s real GDP growth fell to 4.2% in 2022 after a robust recovery to 6.5% of GDP in 2021. This was due to a drop in exports and private investment, as well as a reduction in industrial production.

It predicted that in 2023, economic growth should reach 4.7%, driven by a rebound in the secondary sector because of the expected normalization of international commodity prices, among other factors, but performance were below expectations.

Related Topics:Featured Macky Sall Senegal

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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.”