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Rwanda, South Africa sign mega dollar deals with China

China will invest $14.7 billion in South Africa, President Cyril Ramaphosa said on Tuesday after talks between the two countries

Published

6 years ago

July 25, 2018

Africa News Watch

China will invest $14.7 billion in South Africa, President Cyril Ramaphosa said on Tuesday after talks between the two countries.

The news sent the rand one percent firmer.

Speaking at the same event, Chinese President Xi Jinping said the world’s second-biggest economy would take active measures to expand imports from South Africa to support development in Africa’s most industrialised economy.

Ramaphosa, who has promised to revive the economy since becoming president in February and after winning the leadership of the ruling African National Congress last year, said “Xi has indicated that China is ready to invest and work with South Africa in various sectors.”

The rand firmed after Ramaphosa’s announcement, spurred by offshore demand for the currency, traders said.

South Africa’s struggling state-run power firm Eskom, which swung to a full year loss on Monday, received a $2.5 billion loan from the China Development Bank.

Ramaphosa has focused on revitalising Eskom, Africa’s largest public utility, which was embroiled in corruption scandals under former president Jacob Zuma and narrowly avoided a liquidity crunch early this year after banks halted lending. Zuma has denied wrongdoing.

South Africa’s logistics utility Transnet also received a cash injection, as well as other sectors of the economy, officials said.

Xi said China and South Africa were important emerging economies with similar perspectives on many global issues.

“Hence the need to strengthen cooperation,” Xi said.

Meanwhile, Rwanda has signed loan agreements worth more than $300 million with China and India to fund roads and irrigation, officials said, as leaders from the two Asian powers made their first visits to the East African nation.
Jinping visited Rwanda from Sunday to Monday and granted a loan to build two roads while India’s Prime Minister Narendra Modi arrived on Monday.
Modi, who was on the way to a summit in South Africa, agreed $200 million in loans.

“With India we signed a loan of $100 million for irrigation in three separate areas in the country and $100 million for developing special economic zones,” Rwanda’s minister of finance Uzziel Ndagijimana told Reuters.

“With China we signed a loan agreement of $76 million for the road from Huye to Kibeho and for the new Bugesera airport access road it is $50 million,” Ndagijimana said.

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”