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Blackouts in Sierra Leone’s capital, Freetown as Turkish power firm, Karpowership reduces supply

Published

1 year ago

September 8, 2023

Sierra Leone’s Energy Minister, Kanja Sesay has confirmed that the capital city, Freetown has been thrown into darkness over unpaid debt of around $40 million.

The Minister revealed that Turkey’s Karpowership switched off the electricity due to the outstanding amount which “was accrued over time because the government subsidises more than half the cost the ship charges per kilowatt hour.”

Electricity supply to the capital has been reduced by 13% and is now being rationed, causing homes and businesses to go without electricity for hours daily.

The minister claimed that because the government paid the electricity provider in the weak native Leone currency, which is among the worst performing currencies against the dollar, the government has to spend more on power subsidies given that it charges consumers in the local currency.

A government commission has been established to investigate potential price increases in consumer electricity rates.

According to Sesay, the demand for Karpower supply is greatest during the dry season when the dam’s water levels are low. During the wet season, dependence on the company declines. Currently, the country is in the peak of its May to November rainy season.

Karpower is one of three sources of electricity to Freetown. The other two are the nation’s hydroelectric dam, and power from a connection with Ivory Coast, which also sends power to Guinea and Liberia.

Karpowership, which is one of the world’s largest operators of floating power plants, is yet to comment on the development. According to the company’s website, it has been delivering 80% of Sierra Leone’s entire electrical demands since 2020 after deploying 65 megawatts of power-producing capacity there.

Related Topics:#faetured Featured Power Cut Sierra Leone

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IMF mission concludes 4th loan program assessment in Egypt

Published

6 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.

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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.