VenturesNow

Ghana’s finance ministry warns anti-LGBTQ bill could frustrate IMF support

Published

10 months ago

March 5, 2024

According to a finance ministry document quoted by Reuters on Monday, Ghana’s anti-LGBTQ measure may cause the country to lose $3.8 billion in World Bank financing over the next five to six years if it becomes law.

It might also cause an IMF loan package worth $3 billion to collapse. Lawmakers overwhelmingly approved legislation last week that will further up the crackdown on the rights of LGBTQ individuals and anyone suspected of promoting LGBTQ rights.

President Nana Akufo-Addo has been presented with the bill for assent, which is among the worst in Africa, and will determine whether Ghana signs it into law or not.

The memo, dated March, stated that it included suggestions for the president and summarised discussions between the finance minister, governor of the central bank, head of the tax authority, and other senior officials.

The West African nation is attempting to recover from a severe economic crisis and debt default, and the World Bank and $3 billion in IMF loans that were obtained last year are helping to make this possible. The bill’s passing through parliament comes at this time.

The United States has said it is “deeply troubled” by the proposed legislation and urged a review of the “constitutionality of the bill.”

Ghana is expected to lose US$3.8 billion in World Bank financing over the next five to six years, according to an internal document seen by Reuters from the finance ministry. This would have a detrimental effect on foreign exchange reserves and exchange rate stability.

It further stated that the IMF programme would “derail” if World Bank funds were to disappear, resulting in a negative market reaction that would undermine exchange rate stability.

“A derailed IMF programme will have dire consequence on the debt restructuring exercise and Ghana’s long-term debt sustainability,” it said.

Additionally, “engagement with conservative countries, including the Arab countries and China,” was advised in order to obtain additional cash in order to cover any potential shortfalls.

The IMF pointed to its statement from Friday, stating that it was unable to comment on the consequences of a measure that had not yet been signed into law, while the World Bank stated that it was drafting a response.

The IMF further emphasised that discrimination on the basis of personal attributes was forbidden by internal IMF policies. The World Bank decided to halt new funding to Uganda after that country passed a similar anti-LGBTQ law.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

22 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.”