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Zambia wants IMF loan increased to $1.7 billion

Published

3 months ago

June 4, 2024

The government of Zambia has requested an increase in its $1.3 billion loan programme to $1.7 billion to help it deal with a severe drought, according to a statement released by the International Monetary Fund (IMF) on Tuesday.

In a statement, the IMF added that a staff-level consensus had been reached regarding the third evaluation of the country in southern Africa’s Extended Credit Facility.

Following the approval of the most recent review by the IMF executive board at a meeting scheduled for the end of June, Zambia will receive around $573 million, which is the fourth payment under the facility.

A few African nations, like Zambia, are struggling with a drought brought on by the El Niño weather phenomena, which has left areas of the region without food.

After more than three and a half years of protracted debt restructuring, the copper-rich nation is almost ready to move on.

Over 90% of the holders of Zambia’s $3 billion in outstanding international bonds have approved a restructuring proposal, the country’s finance minister announced last week.

Situmbeko Musokotwane, the minister of finance, stated that the staff-level agreement unveiled on Tuesday was a “testament to Zambia’s determination to rebuild macroeconomic and debt sustainability” and its efforts to finalise restructuring talks within the parameters of its IMF programme.

VenturesNow

Ezz al-Arab appointed as Egypt’s CIB chairman

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Commercial International Bank (CIB), Egypt’s largest private bank, announced on Monday that long-time chairman and previous CEO Hisham Ezz al-Arab will become CEO.

Neveen Sabbour, a board member, will take over as chairman, according to a statement. Hussein Abaza, the outgoing CEO, will be replaced by Ezz al-Arab, who will hold the role for three years.

In Egypt, the market share held by traditional banks is expected to reach US$35.84 billion. As more clients choose online and mobile banking options, Egypt’s banking industry is seeing an increase in digital banking services.

The new appointments are part of “to lead the bank’s multifaceted business transformation and continue its programme to support recognised potential future leaders,” the announcement stated.

Ezz al-Arab, chairman and managing director since 2002, resigned in October 2020 due to “compliance concerns” from the national bank.

In August 2022, a year before his tenure expired, central bank governor Tarek Amer resigned due to a currency crisis. Ezz al-Arab was requested to rejoin as chairman in December.

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Nigerian inflation falls again, drops to 32.15% in August

Published

3 hours ago

September 16, 2024

Ifeoluwa Dada

Nigeria’s August inflation rate declined for a second month to 32.15% from 33.40% in July, the statistics office reported on Monday. This comes after the month of July saw the first decrease in consumer inflation in Africa’s largest country in almost a year.

Analysts predict August’s slowdown may be short-lived after two gas price increases this month enraged citizens facing the worst cost-of-living crisis in a generation.

The removal of a decades-old gasoline subsidy, devaluation of the naira currency, and increase in energy costs by President Bola Tinubu have raised prices.

Reforms attempt to boost economic growth and public finances.

The central bank’s next interest rate decision next week may be influenced by inflation figures. The apex bank has hiked rates four times this year to curb inflation, and economists say July’s hike may be the last.

Further petrol price increases and northern flooding that swept away crops could raise food prices.

“On the whole, disinflation should continue with the headline rate falling below 30% by year-end, but upside risks remain,” Capital Economics Africa analyst David Omojomolo wrote.

He claimed rising petrol prices might “slow the pace of the disinflation process” and that the central bank would not drop rates until early next year.

Food inflation dropped from 39.53% to 37.52% in August. It remained the greatest inflation driver in August.