VenturesNow

South Africa, Botswana partner to extend rail links. Here’s why

Published

2 years ago

August 5, 2022

Regional neighbours, South Africa and Botswana have agreed to fund the improvement and extension of rail links between the countries.

South African state-owned logistics firm Transnet said revealed on Friday that the agreement is in a bid to boost trade and better connect Botswana to export markets.

There has been scabbles across Europe to meet coal needs after a ban on imports of the fossil fuel from Russia, and coal-rich countries like Botswana are looking to cash in on the surge in demand.

South African firms, Transnet Freight Rail (TFR) will collaborate with Botswana Rail (BR) to fix parts of the 126 km (78 mile) rail line between Swartruggens, in South Africa’s North West province, and Mafikeng, on the border with Botswana, helping South Africa’s landlocked northern neighbour get its minerals, including thermal coal, to market.

Although the actual financial terms were not disclosed, the project is expected to revamp will enable heavy haul trains to travel from Botswana to South Africa’s ports of Richards Bay and Durban, TFR said. The project aims to be up and running in the next 24 months.

According to TFR, the two rail companies will work together to fight the “scourge of cable theft and infrastructure vandalism” that is impacting rail services.

South Africa and Botswana recently celebrated twenty eight years of bilateral relations, it is hoped that the new train agreement will further enhance the relationship.

Related Topics:Botswana Featured Rail links South Africa

Click to comment

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

17 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

VenturesNow

Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.