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Malawi gets $11.2 million insurance payout after El Nino-linked drought disaster

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An insurance payout of $11.2 million has been given to the government of Malawi in response to a severe drought caused by El Nino that prompted the southern African country to declare a state of emergency earlier this year.

Malawi received the settlement this month, the African Development Bank announced on Monday. Through the bank and the African Union organisation African Risk Capacity Group, Malawi has a drought insurance policy.

The African Development Bank stated that the funding will help with direct relief payments to over 100,000 households as well as food assistance to almost 235,000 households in some of Malawi’s most affected districts.

Lazarus Chakwera, the president of Malawi, described the payment as “a lifeline for our vulnerable populations.”

The El Nino natural weather phenomenon is responsible for the drought that has devastated Malawi’s food supply, making the country already among the poorest in the world. The drought lasted for a full year before concluding in June. In March, the nation declared a state of emergency, citing a food crisis in 23 out of 28 districts.

Because of El Nino’s below-average rainfall between November and April, crops have failed throughout the region. Throughout southern Africa, small-scale agriculture provides a livelihood for tens of millions of people.

At a heads-of-state meeting this past weekend in Zimbabwe, the Southern African Development Community (SADC) stated that over 68 million people, or 17% of the region’s population, require assistance due to drought.

According to the U.S. Agency for International Development, southern Africa saw its worst drought in almost a century during the first three months of this year. All across the region, crops have failed due to El Nino’s below-average rainfall between November and April. Tens of millions of people in southern Africa depend on small-scale agriculture for their livelihood.

The Southern African Development Community (SADC) announced during this past weekend’s heads-of-state conference in Zimbabwe that more than 68 million people—or 17% of the region’s population—need help as a result of the drought.

The first three months of this year saw southern Africa experience its worst drought in nearly a century, according to the U.S. Agency for International Development.

Zimbabwe and Zambia have also declared states of emergency and requested foreign assistance. The African Development Bank stated that payouts for drought insurance were anticipated for Mozambique, Zambia, and Zimbabwe by September.

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Moroccan annual inflation rises to 0.8% in November

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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

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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.”

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