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Algeria’s economy recovering rapidly— AfDB

Published

1 month ago

August 17, 2024

A country report by the African Development Bank Group (AfDB) which will be formally presented in Algiers in mid-September, has projected Algeria’s GDP growth to be 4.0% in 2024 and 3.7% in 2025.

The projection which suggests rapid growth meant the North African country’s economic recovery is getting stronger; the country’s GDP grew by 3.6% in 2022 and 4.2% in 2023.

The research claims that the construction, industrial, services, and oil and gas industries all contribute to Algeria’s economic growth. The report highlights that employment patterns indicate a shift away from manufacturing and agriculture and towards the services sector.

However, it also notes that the GDP structure has not fundamentally changed and that additional reforms should be implemented to accelerate the structural transformation of the nation’s economy.

According to Mr Lassaad Lachaal, the national manager for Algeria at the African Development Bank, “For Algeria, the reform of the global financial architecture is an opportunity to position itself as a donor country to support progress towards the development programs of other African countries.”

The research shows that Algeria has the chance to establish itself as a donor nation to aid in the development initiatives of other African nations through the reform of the global financial architecture.

Algeria became one of the contributors to the AFD-16 financial cycle of the African Development Fund in 2023. Even with a $1 billion budget set aside for development projects in Africa, the nation will still require more funding to promote climate protection and green growth initiatives.

The Hamma Seawater Desalination Plant of Algerian Energy Company is situated close to the Port of Algiers on the Mediterranean Sea.

Short-term financial resources for Algeria’s structural change might be further enhanced by increasing the sustainability of the public finances and improving domestic financing mobilisation, the document notes.

The research’s theme aligns with the 2024 report titled “Driving Africa’s Transformation – The Reform of the Global Financial Architecture,” which examines the continent-wide African economic outlook.

VenturesNow

Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

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Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.