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Kenya: President Ruto assured of fresh IMF disbursement

Published

8 months ago

May 1, 2024

This would help the economy, which is getting better after avoiding a debt problem earlier this year.

Since the government released a $1.5 billion Eurobond in February, Kenya’s shilling has recovered from record lows. This was done to calm the market’s fears of a possible default on a $2 billion bond that matures in June.

The problems with the currency, high inflation, and new taxes meant to close budget gaps have all made living costs go up, which has led to anger and some protests.

Kenya has been able to get through a liquidity problem thanks to strong loans from the IMF and the World Bank. The East African country got an extra $941 million in loans from the IMF in January. This brought its total deal with the fund to $4.43 billion, with about $2.5 billion still due.

A source quoted by Reuters claimed the IMF officials would be in Kenya on May 9 for a review that would allow a $1 billion tranche to be released.

“That process is going on very well,” he said in the interview on Monday, adding that talks between the Kenyan minister of finance and the IMF in Washington during the World Bank/IMF spring meeting earlier this month were “extensive, very successful”. The IMF has not commented on the ongoing review.

Still, Ruto kept his promise to cut spending by 12% in the next fiscal year, from 4.2 trillion shillings to 3.7 trillion shillings.

It is expected that the budget deficit will go down from 4.9% of gross domestic product (GDP) this fiscal year to 3.9% of GDP in the 2024/25 fiscal year (17 July–June).

Earlier on Monday, Ruto and other African heads of state asked rich countries to lend record amounts to a low-interest World Bank facility for developing nations. They said that these countries were facing climate and debt problems that were getting worse.

“We want a fair international financial architecture,” Ruto said.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

4 days 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

5 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.”