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World Bank consortium to give Egypt $6 billion over a 3-year period

Published

9 months ago

March 18, 2024

The World Bank Group on Monday announced that it planned to give Egypt, which has been suffering from a foreign exchange crisis that has delayed economic activity and resulted in shortages of imported commodities, more than $6 billion in support over the next three years.

According to the World Bank Group, $3 billion will fund public initiatives and $3 billion will go to the private sector, all pending board approval.

The aid package follows a $35 billion agreement with the Emirati sovereign wealth fund ADQ in late February, which led Egypt to weaken its currency earlier in March to reduce historically high inflation.

In March, it also managed to negotiate an enhanced $8 billion agreement with the International Monetary Fund. On Sunday, the European Union announced a finance package worth $8.1 billion for Egypt.

“In support of the government’s development priorities, programs will focus on increasing opportunities for private sector participation in the economy, including through the government’s Asset Monetization Program,” the World Bank Group said in its statement.

Egypt is aiming to earn $10 billion in four years through private investment in public assets by 2022. The country is selling assets to support the private sector and raise hard currency.

With $6 billion from the International Bank for Reconstruction and Development, $1.9 billion from the International Finance Corporation, and $0.5 billion from the Multilateral Investment Guarantee Agency, the World Bank Group said that its current operational portfolio in Egypt exceeds $8 billion.

Related Topics:Egypt Featured loan World Bank

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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.”