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World Bank approves $1 billion loan for South Africa amid energy crisis

Published

1 year ago

October 26, 2023

Multilateral body, the World Bank, has approved a $1 billion loan to help South Africa reform its energy sector, which has been in crisis for over a year now.

South Africa’s attempts to overcome frequent power outages that have slowed economic growth have been lauded by the bank’s board. According to a statement, the bank wants to support the nation’s reforms to split the financially troubled state power company, Eskom, and move towards a low-carbon economy.

The World Bank’s director for South Africa, Marie Francoise Marie-Nelly, informed Reuters last month that talks were ongoing regarding the loan and that it might be approved shortly.

The statement says the government’s implemented reforms in the sector will help “the economy, the environment, and advance the energy transition—benefiting the people of South Africa, particularly the most vulnerable households.”

Due to the frequent breakdown of state utility firm Eskom’s outdated coal-fired plants, South Africa is currently experiencing its greatest power crisis. While stifling economic expansion, rolling power outages have fuelled private investment in renewable energy.

The World Bank claimed that by lowering the reliance on coal for electricity generation, its Development Policy Loan would help to gradually reduce air and water pollution.

The country is one of Africa’s most industrialised economies, and the power outages have threatened businesses and the general economy of the country. One of its leading companies, Tiger Brands, recently revealed that its revenues were expected to drop due to the prolonged power challenges.

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

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

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

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.”