Connect with us

Musings From Abroad

After initial evaluation, IMF raises Ethiopia’s international reserves target

Published

on

In order to make it easier to pay for future hard currency expenses, the International Monetary Fund (IMF) increased Ethiopia’s aim for net international reserves, the Fund announced.

After implementing a number of reforms, including floating its birr currency, the East African country was granted a $3.4 billion, four-year financing program by the IMF in July. Additionally, a new initiative to restart its debt restructuring is underway.

“An increase in near-term target is warranted by Ethiopia’s vulnerabilities and heightened uncertainty around the outlook,” the IMF said in a report published late on Monday.

An overachievement of the August target for net international reserves was caused by increased gold exports and lower-than-expected amounts of hard currency sales by the central bank through auctions, according to the IMF.

According to the Fund, net overseas reserves were $1.3 billion in mid-August, more than twice the $630 million projection.

To help build a buffer for the nation to settle maturing letters of credit for gasoline imports issued before the start of reforms, it increased the end-June 2025 target by $300 million to $400 million.

The IMF stated that although the official and black market rates converged as a result of the birr currency’s launch, market activity increased more slowly than anticipated, resulting in a sustained unmet demand for dollars.

According to the Fund, Ethiopia intends to agree with its bilateral creditors by the end of the year, and then “as soon as is feasible” with its Eurobond investors.

According to bondholders, the government was disregarding the fact that Ethiopia is dealing with a liquidity problem rather than an insolvency one when it suggested a haircut, or decrease in the principal amount, of 18% in a recent investor presentation.

“The authorities are making good faith efforts to agree terms with Eurobond holders,” the IMF said.

Between 2024 and 2029, Ethiopia’s national debt is expected to rise steadily by a total of 58.7 billion USD (+178.09%). The national debt is predicted to reach 91.7 billion USD in 2029, marking a new peak after ten years of continuous growth. Notably, throughout the previous few years, the national debt has been steadily rising.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Musings From Abroad

Brazilian meatpacker JBS invests $2.5 billion in Nigeria, builds six facilities

Published

on

Brazilian meatpacker JBS says it has inked a memorandum of understanding with the Nigerian government for a $2.5 billion investment plan that will include the construction of six new plants in the African nation.

Three of the plants would deal in poultry, two in beef, and one in pork, according to a statement from JBS.

In accordance with the memorandum of understanding, JBS stated that it would develop a five-year investment plan in Nigeria, which would include budget estimates, feasibility studies, and an action plan for the development of the local supply chain.

The Nigerian government would then guarantee the sanitary, regulatory, and economic conditions required for the project’s viability, JBS continued.

 

Continue Reading

Musings From Abroad

China’s Xi meets with Morocco’s Crown Prince

Published

on

Morocco’s official media reports that Chinese President, Xi Jinping, visited Morocco briefly on Thursday.

According to Morocco’s MAP, Crown Prince Moulay El Hassan welcomed Xi in Casablanca. The visit demonstrated the close ties of camaraderie, collaboration, and solidarity between the Moroccan and Chinese peoples, it said.

China’s official broadcaster, CCTV, said that Xi and Hassan had a “cordial conversation” at the airport after being received by the Crown Prince and Moroccan Prime Minister Aziz Akhannouch.

After attending the G20 Summit in Brazil, Xi paid the visit.

In recent years, China has increased its investments in Morocco’s rail and infrastructure. Morocco is desirable for Chinese electric car battery manufacturers because of its proximity to Europe, free trade agreements with important EU and US markets, and an established automotive sector.

Morocco was chosen by Chinese EV battery company Gotion High Tech in June to establish Africa’s first gigafactory, which will cost $1.3 billion in total.

 

Continue Reading

EDITOR’S PICK

Culture15 hours ago

South African DJ Black Coffee bags World’s Best DJ 2024

South African disc jockey, DJ Black Coffee, has been named the World’s Best DJ 2024 at the Golden Moon Awards....

Sports15 hours ago

Wafcon 2024 draw throws up interesting pairings

The draw for the 2024 Women’s Africa Cup of Nations (Wafcon) holding in Morocco from July 5 to 26 next...

Metro15 hours ago

Zambian govt successfully repatriates trafficked toddler from Mozambique

The Zambian government has announced the successful repatriation of a one-year-eight-month-old child who was trafficked to Mozambique. Making the announcement...

Metro19 hours ago

Finland-based Nigerians in panic as authorities search for Simon Ekpa’s sponsors

Some Nigerians based in Finland have been thrown into panic mode following the arrest and detention of the self-styled Prime...

Politics21 hours ago

Mauritius’ Prime Minister to double as Finance Minister

In an effort to maintain a tight eye on the economy, Mauritius’ Prime Minister, Navin Ramgoolam, who took office this...

VenturesNow2 days ago

IMF mission concludes 4th loan program assessment in Egypt

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had...

Politics2 days ago

Mali’s junta names spokesman Abdoulaye Maiga new Prime Minister

A day after dismissing Choguel Maiga for criticising the government, Mali’s governing junta named its spokesperson, Abdoulaye Maiga, as Prime...

Musings From Abroad2 days ago

Brazilian meatpacker JBS invests $2.5 billion in Nigeria, builds six facilities

Brazilian meatpacker JBS says it has inked a memorandum of understanding with the Nigerian government for a $2.5 billion investment...

Musings From Abroad2 days ago

China’s Xi meets with Morocco’s Crown Prince

Morocco’s official media reports that Chinese President, Xi Jinping, visited Morocco briefly on Thursday. According to Morocco’s MAP, Crown Prince...

Metro2 days ago

65% of Nigerian households lack money for healthy food—Survey

A survey conducted by the National Bureau of Statistics (NBS) has revealed that around 65% of Nigerian households, which is...

Trending