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World Bank predicts low economic growth for Madagascar in 2022

Published

2 years ago

June 4, 2022

The World Bank has forecasted a gloomy and a lower economic growth rate for the island southern African country of Madagascar for 2022.

The World Bank’s prediction is, however, at variance with the Malagasy authorities forecast of a positive growth rate of 5.4% this year.

In the framework of the initial 2022 Finance Law released by the World Bank on Friday, the global bank estimates that the Indian Ocean nation’s economic growth for the year is not expected to go beyond 2.6% this year as against 4.4% it recorded last year.

Part of the World Bank report said that Madagascar’s economy “faces new threats from new episodes of COVID-19, a series of extreme weather events and the fallout from the conflict in Ukraine in early 2022.”

“But it is the war in Ukraine that will have the greatest impact on Madagascar’s economic development, due to the slowdown in demand from trading partners and the rise in oil prices, which is expected to lead to a deterioration in the trade balance and increasing pressure on public finances,” the report continued.

Also commenting on the outcome of the report, Idah Pswarayi-Riddihough, the World Bank’s Director of Operations for Comoros, Madagascar, Mauritius and Mozambique, noted:

“In the face of new shocks and uncertainties, Madagascar needs more than ever to undertake bold reforms to accelerate growth and build resilience.

“This is a necessity to reduce poverty in the years to come and avoid a growing backwardness compared to peer countries.”

As a fallout of the gloomy forecast, the World Bank which is a key financial partner of the country, has established a number of priorities that are highlighted as particularly urgent, including a clear strategy to accelerate the immunization of people living in vulnerable situations, in urban and tourist areas.

Parts of the strategies, according to Pswarayi-Riddihough also include the restoration of essential public services and connectivity infrastructure following the recent climatic shocks, strong measures to reduce food insecurity and stimulate national agricultural production, reforms in fuel and electricity pricing, a new impetus to stimulate access to broadband and digital services and more transparency and accountability in the public sector.

This World Bank report also highlights the importance of improving the performance of public schools following the continued deterioration of learning outcomes in recent years.

“Based on new analytical findings, the World Bank suggests a new approach to improving performance that includes measures to strengthen teacher selection and evaluation, salary and school grant management, appeal mechanisms, and local community participation,” Pswarayi-Riddihough added.

Related Topics:Economy Featured Madagascar World Bank

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Nigeria offers oil majors faster exit if …

Published

2 hours ago

May 4, 2024

Ifeoluwa Dada

Oil-rich West African country, Nigeria, has offered major oil companies, such as Exxon Mobil and Shell, that planned to leave the country’s onshore oil an offer for quicker exit approval on the ground that they take responsibility for spills rather than wait for authorities to apportion blame.

The regulator tt a meeting with the companies in Abuja, Nigerian Upstream Petroleum Regulatory Commission (NUPRC) chief Gbenga Komolafe offered a short-term option with faster approval if the companies commit to cleaning up spills and compensating communities.

To concentrate on deepwater drilling, Exxon, Shell, TotalEnergies, and Eni have all attempted to withdraw from Nigeria’s oil-rich Niger Delta in recent years, claiming security issues including theft and sabotage. Regulatory obstacles have, however, caused their exits to be postponed.

“We have the undertaking here. The consent here though fixed for June, could be much shorter,” he said.

“If you agree to take that option, you sign the undertaking knowing that there are obligations to be fulfilled,” Komolafe said.

The second long-term alternative might push back the final approval until August by requiring NURPC to identify and assign all liabilities first. In order to safeguard the environment, local populations, and the long-term viability of the assets, NURPC is attempting to strike a compromise between expediting the exit for oil majors.

According to them, the corporations are considering their alternatives and will reply shortly. Meanwhile, some observers say the accelerated option could cost oil majors millions of dollars for cleanups and reparations.

“The risk with option 1 is the transferor will continue to take responsibility for the asset until the process is completed while option 2 puts them at the mercy of the regulator since they waived their right to deemed approval,” said Ayodele Oni, energy lawyer at Lagos-based Bloomfield law firm.

Following the majors’ withdrawal, 26 onshore blocks with a combined estimated reserve of 13.76 billion barrels of oil, 2.70 billion barrels of condensate, and roughly 90,717 billion cubic feet of gas are up for grabs, according to NUPRC.

“We aim to ensure that the companies that take over these blocks have the necessary financial resources and possess the technical expertise required to responsibly manage the blocks throughout their lifecycle under good asset stewardship practices,” Komolafe said.

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Nigeria’s Security Exchange chief to meet foreign, local crypto exchanges, others over crypto regulation

Published

2 hours ago

May 4, 2024

Ifeoluwa Dada

On Monday, local and international cryptocurrency exchanges will meet with Dr. Emomotimi Agama, the recently appointed Director General of the Securities and Exchange Commission, to deliberate and reach a consensus regarding the current state of cryptocurrency in Nigeria.

The Nigerian Blockchain Industry Coordinating Committee called the meeting to discuss pertinent issues and outline a forward-thinking plan for cryptocurrency regulations.

The meeting is open to all operators of digital asset exchanges, wallet providers, other virtual asset service providers (VASPs), and pertinent industry associations and bodies in order to address pertinent issues and map out a progressive path for cryptocurrency regulations in Nigeria.

The associations include the Blockchain Nigeria User Group (BNUG), the Cryptographic Development Initiative in Nigeria (CDIN), the Digital Currency Consortium (DCC) and the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN).

Uwakwe expressed hope that the meeting could spark the right kind of change that would favour all crypto stakeholders in Nigeria and internationally.

“Everyone’s presence and insights are invaluable as we collectively navigate the regulatory terrain and strive toward fostering an environment conducive to innovation and growth within the blockchain and cryptocurrency sector,” he said.

Nigeria has since initiated investigations into the use of cryptocurrencies in the nation and taken actions that run counter to its December 2023 decision to lift a ban on them.

The Central Bank of Nigeria blocked local cryptocurrency users’ access to the websites of numerous cryptocurrency exchanges, including Binance, OctaFX, and others in February.

Additionally, the SEC of Nigeria suggested changing the regulations governing platforms that provide cryptocurrency services. It suggested raising the registration fee for cryptocurrency exchanges from N30 million ($18,620) to N150 million ($93,000).