VenturesNow

Nigeria, Germany sign $500m gas, renewable energy deal

Published

1 year ago

November 22, 2023

Nigeria’s Union Bank of Nigeria and Germany’s DWS Group on Tuesday signed a memorandum of understanding (MoU) on renewable energy. The MoU includes two accords in Berlin— a $500 million renewable energy pact and a gas export deal.

Nigerian government spokesperson, Ajuri Ngelale says the agreement seeks to harness $500 million in investment in renewable energy projects across Nigeria, mostly in rural communities.

Between Germany’s Johannes Schuetze Energy Import AG and Nigeria’s Riverside LNG, a second MoU on a gas export partnership was reached. As per the agreement, Nigeria will provide Germany with 850,000 metric tonnes of natural gas per year, with an expected increase to 1.2 million metric tonnes. According to Ngelale, the first deliveries will occur in 2026.

The largest economy in Europe may be assisted in achieving its transition to carbon neutrality if Germany invests 4 billion euros in renewable energy projects in Africa until 2030, according to Chancellor Olaf Scholz’s announcement on Monday.

Speaking at a German-African business forum in Berlin, he stated that if Germany was to reach its target of net zero emissions by 2045, it would need to import large amounts of green hydrogen in the future, including from Africa.

Nigeria has the largest gas reserves in Africa— more than 200 trillion cubic feet— but due to poor processing facilities, roughly 300 million cubic feet of that gas is flared off every day.

President Bola Tinubu, who is in Berlin for the G20 Compact with Africa conference, is seeking to boost the country’s economy, which is beset by slow growth, record debt, double-digit inflation, and industrial-scale theft of its main export, crude oil.

VenturesNow

IMF mission concludes 4th loan program assessment in Egypt

Published

2 days 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

4 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.