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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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Ezz al-Arab appointed as Egypt’s CIB chairman

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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

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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.

 

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