VenturesNow

IMF eases East Africa’s indebted states’ burden with $1.9b deals

Published

5 months ago

December 24, 2023

The budgetary support of $620.65 million for East African nations, Rwanda, Tanzania, and the Democratic Republic of the Congo (DRC) has been approved by the board of the International Monetary Fund (IMF).

The fund is regarded as a component of the $1.92 billion in funding pledges that the Washington-based organisation reached with six countries in East Africa during the previous six months.

The agreements are a relief for the six countries (Somalia, Burundi, Kenya, and Uganda are the others) which are heavily indebted and facing worsening debt due to falling revenue collections, diminishing foreign exchange reserves, and weakening currencies.

The IMF funding is contingent upon the recipient countries enacting significant socioeconomic and governance reforms, and is intended to support the countries in managing their ongoing budget deficits and stabilising their faltering foreign exchange reserve positions.

The fund’s board has authorised the distribution of $150.5 million, $268.05 million, and $202.1 million to Tanzania, Rwanda, and the Democratic Republic of the Congo, respectively, during the last two weeks.

The funding for Tanzania is a component of the $1.04 billion Extended Credit Facility (ECF), which was authorised in July 2022 by the IMF board. After the program’s second review was finished, Dodoma’s funding was approved, increasing Tanzania’s overall access under the agreement to $455.3 million.

It stated that although macroeconomic imbalances had gotten worse, Rwanda’s economic growth had remained strong. It also added that reduced policy buffers, recurrent droughts, and the devastating floods in May 2023 had limited the country’s ability to pursue developmental goals.

Kenya and the IMF staff agreed in November for an increased $938 million in funding. Kenya would receive immediate access to about $682 million from the fund as a result of the funding, which still needs to be approved by the IMF board in January.

Generally, most countries on the continent have struggled with foreign and domestic debt since the endemic effect of the COVID-19 pandemic on their economies, but not many have made significant progress in the push for debt restructuring under the G20 framework.

VenturesNow

Uganda discusses power line to South Sudan with China’s Sinohydro

Published

3 hours ago

May 15, 2024

Ifeoluwa Dada

According to the president’s office, Uganda is in negotiations with Sinohydro Corporation Limited of China to build a $180 million power transmission line that would enable Uganda to export electricity to South Sudan, which is severely short on energy.

Ugandan President Yoweri Museveni received a group led by Vice President of Sinohydro Corporation Yang Yi Xin on Monday as part of the negotiations, according to a late-morning statement from Museveni’s office.

The project, according to the statement, will entail building a new substation and expanding two existing ones in addition to building a 138-kilometre high-voltage transmission line to provide power to South Sudan.

“We are very much willing to help develop this project with the required finance if needed,” Xin was quoted as telling the president.

The statement stated that Museveni endorsed Sinohydro’s proposal to carry out the project. Uganda and South Sudan inked a power sales deal in June of last year, enabling Uganda to sell electricity to South Sudan.

To enable Uganda to export electricity to South Sudan, the two nations inked a power sales deal in June of last year. The Chinese firm is completing a $1.5 billion, 600-megawatt hydropower project on the River Nile in Northern Uganda that is meant to be the source for electricity exports to South Sudan.

VenturesNow

Uganda considers nuclear energy to meet increased electricity demand

Published

5 hours ago

May 15, 2024

Ifeoluwa Dada

Uganda’s Ministry of Energy and Mineral Development announced on Tuesday that it was collaborating with the International Atomic Energy Agency (IAEA) to develop nuclear energy in the country as power demand rises.

Irene Batebe, permanent secretary of the ministry, stated that the government, with the assistance of the IAEA, is investigating and evaluating uranium deposits to ensure a sustainable supply of nuclear fuel for the projected nuclear power plants and research reactors.

“Uranium is the most widely used nuclear fuel material in nuclear power plants and research reactors and is required for Uganda’s nuclear power program.

“The planned nuclear power capacity will require about 4,000 tons of Uranium annually when fully operational. Thus, there is a need for sustainable sources of uranium,” she said at the opening of the nine-day meeting with the experts from the IAEA.

Batebe stated that the government is modifying the Atomic Energy Act of 2008 to tighten the legal framework for the exploration, mining, and processing of nuclear fuel reserves. She stated that even if completely exploited, the country’s electricity generation capacity from hydro, biomass, geothermal, and peat will fall short of Uganda Vision 2040 ambitions.

“To meet our development targets, nuclear energy among other sources must be integrated in the electricity generation mix,” she said.

The Cabinet approved the Energy Policy for Uganda, 2023 in April 2023, which envisions the long-term development of 52,481 MW of generation capacity to meet future demand, with nuclear power accounting for 24,000 MW.