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IMF board authorises fresh $178 million loan to Malawi

Published

1 year ago

November 17, 2023

A fresh loan of about $178 million has been approved by the executive board of the International Monetary Fund (IMF) for Malawi, with an immediate disbursement of about $35 million.

The IMF said in a statement on Wednesday that the fund was part of the four-year Extended Credit Facility in approved September, while Finance Minister, Simplex Chithyola Banda also, in an interview, rated “the decision as a big breather for us and our economy.”

“Two major benefits are expected: the resumption of budgetary support from our traditional donors and the easing of foreign currency supplies,” the southern African country’s finance minister said.

In September, the Malawian government said it was “very optimistic” about a restructuring agreement with the IMF over the country’s $1.2 billion external debt.

In a nationally televised speech late on Wednesday, Malawian President, Lazarus Chakwera stated that the IMF programme would enable more funding from development partners.

According to Chakwera, Malawi could receive $250 million for agriculture, $217 million for fiscal reforms, and $60 million for trade finance from the World Bank.

“These injections of foreign investment from our partners over the next four months will greatly enhance our foreign exchange reserve position and provide the macroeconomic stability needed for economic and business growth,” he added.

Landlocked Malawi is currently experiencing severe shortages of vital imports like fuel, medicines, and fertilisers due to forex shortages. 58.8% of the country’s population currently lives in extreme poverty.

Malawi devalued its currency by roughly 30% earlier this month in response to acute shortages of fuel, medications, and fertiliser caused by the forex shortages.

VenturesNow

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.”