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Senegal launches 25-year social, economic plan

Published

1 month ago

October 15, 2024

The Senegalese government unveiled a 25-year growth plan on Monday, claiming that it would establish the groundwork for economic sovereignty through excellent governance, competitiveness, and sustainable resource management.

Seven months after President Bassirou Diomaye Faye won the election handily based on his pledge to raise living standards in the country of West Africa, the agenda was introduced.

“We aim to build a diversified and resilient economy,” Faye said at the launch ceremony, a month ahead of a snap legislative election.

“Our … economy has been neutralised by a model of exploiting raw materials without any significant local processing or valorisation, leaving our domestic private sector too weak … and our young talent in desperate search of opportunities,” he said.

With the commencement of production at its Sangomar oil and gas project by Australia’s Woodside Energy in June, Senegal became an oil-producing nation. Additionally, BP’s Greater Tortue Ahmeyim liquefied natural gas project is scheduled to start producing gas by the end of the year.

An examination of mining and oil contracts was started by Faye early in his presidency, but the government has not released any information about its status.

The first phase of the economic plan, estimated to cost $30.1 billion, is scheduled to run from 2025 to 2029 and will decrease the budget deficit from 4.9% of GDP to 3% of GDP over that time.

A combination of private, governmental, and public-private partnership funds will be used to pay for it. It is predicated on a 6.5% average growth rate and a 21.7% average tax burden rise.

The IMF lowered its growth projection for Senegal from 7.1% in June to 6.0% in September after the country’s economy grew more slowly than anticipated in the first half of the year.

The government wants Senegal to become energy self-sufficient by increasing access to electricity from 84% to 100% under the new plan.

Senegal’s deficit finance framework will also be changed by the incoming administration in order to reframe the country’s debt.

The downtrodden urban youth whose backing propelled Faye to power have been pressuring him to keep his electoral pledges.

In response to opposition from the national assembly, the president dissolved parliament last month, setting the stage for the early legislative election scheduled for November 17. Having only 26 seats in the now-dissolved 165-member parliament, his Pastef party had limited influence.

According to the IMF, government revenue decreased dramatically in the first eight months of the year, and there are worries that the election may cause a delay in IMF financing.

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IMF mission concludes 4th loan program assessment in Egypt

Published

1 day 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.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

3 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.