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South Africa’s central bank expects country to get off global regulator’s ‘grey list’ by 2025

Published

9 months ago

March 14, 2024

South Africa’s central bank governor, Lesetja Kganyago, has expressed confidence that his country will be removed from an international financial crime watchdog’s “grey list” next year, given the work that is underway to fix identified issues.

South Africa was put on a “grey list” of nations under particular scrutiny by the International Financial Action Task Force (FATF) last year for failing to implement laws intended to stop the funding of terrorism and money laundering.

Kganyago made the claim while speaking at a financial sector conference on Wednesday that being on the watch list had “been a costly episode for us.”

“The lesson is that joint efforts are required to look after the integrity of South Africa’s financial system. We all suffer when this is compromised,” he said.

When the task force conducted its next review in February 2025, the National Treasury hinted that it would be difficult to address all 17 of the outstanding items. The task force had confirmed that five of the 22 actions it had identified had been addressed or largely addressed.

The inclusion of Africa’s most developed economy on the list was a reputational blow, and experts warned that it would make it more difficult for it to get loans and support from official lenders and multilateral development organizations.

In 2023, South Africa’s economy barely grew by 0.6%, with growth picking up just 0.1% in the last quarter.

“We are falling behind. A big reason for this is that other places have functioning rail networks, ports and electricity,” said Kganyago.

Meanwhile, he claimed that the amount of government debt has increased too quickly and too high. Growth has been hindered by inefficiencies at South Africa’s state power utility Eskom and port and freight rail operator Transnet, while consumer spending has been constrained by the country’s cost-of-living crisis.

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Moroccan annual inflation rises to 0.8% in November

Published

23 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.”