VenturesNow

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

Published

9 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

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

Published

3 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.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

3 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.