Author: James Wambua

• The World Bank recommends three broad policy pathways to achieve inclusive growth and fight poverty.
• These include connecting the poor to economic growth and strengthening households’ resilience to adverse weather shocks.
• The lender also advocates leveraging fiscal policy programs to support poverty reduction objectives.

Kenya’s economic growth holds the promise of lifting millions out of poverty, even amid challenging economic conditions. According to the World Bank, the secret lies in adopting an inclusive growth strategy that not only enhances economic opportunities and productivity for the poorest but also remains steadfast in pursuing long-term developmental objectives.

This vision is captured in the latest World Bank report titled “Kenya Poverty and Equity Assessment (KPEA) 2023 – From Poverty to Prosperity: Making Growth More Inclusive,” which focuses on the years from 2005 to 2021.

The report underscores that while Kenya has made strides in reducing poverty and improving living standards, the …

• The project will benefit over 17.5 million unserved, underserved, rural, and remote Nigerians through the deployment of standalone solar and mini-grids.
• The initiative will replace over 280,000 polluting and expensive petrol and diesel generators, helping Nigeria to achieve energy transition targets.
• Under the project, up to 237,000 small businesses will access reliable and clean electricity for productive uses.

The International Development Association (IDA) is readying a credit of $750 million from the World Bank’s fund for poor nations to support clean energy initiatives in Nigeria.

The goal is to enhance electricity access to roughly 17.5 million people in Africa’s most populous nation, addressing the critical need for improved power infrastructure and sustainability in the country.

Founded in 1960, IDA offers grants and loans with low to zero-interest rates to support projects and programs aimed at enhancing economic growth, alleviating poverty, and enhancing the well-being of poor populations. Serving as a …

• In a body blow, Fitch Ratings has moved Ethiopia’s rating from “CC,” where it had been downgraded in November, to the new status of “C”.
• This adjustment reflects the agency’s deepening concerns about Ethiopia’s economic health and the rising risk of default following a missed interest payment on 11 December.
• A further severe downgrade by Fitch Ratings to ‘restricted default’ (RD) looms if Ethiopia fails to make the coupon payment within the set 14-day grace period.

Fitch Ratings agency has served Ethiopia’s economy a gut punch by further downgrading Ethiopia’s credit rating into junk territory, expressing concerns about the “increased likelihood” of default by the second most populous country in Africa.

This economic setback for Ethiopia, home to approximately 120 million people, comes as a result of the country’s failure to meet its financial obligations to creditors. Specifically, Ethiopia was unable to pay a coupon on its single …

• Sudan’s economy is set to shrink by 18.3 per cent this year even as joblessness hits nearly half the country’s population.
• Khartoum city, once a bustling hub, now bears the scars of conflict with factories, banks, shops, and markets falling victim to looting or destruction.
• About 10,400 schools in conflict-affected areas are closed, rendering 19 million Sudanese children without access to education.

The humanitarian crisis in Sudan is poised to worsen next year even as the economy is set to contract by 18 per cent in 2023. This comes as New York-based International Rescue Committee (IRC) identified Sudan as the foremost nation among 20 countries globally facing the greatest risk of a worsening humanitarian situation in 2024.

The IRC’s 2024 Emergency Watchlist report reveals that Sudan, with its economy in ruins, has over seven million displaced people. This alarming figure is part of a larger global trend, as 110 million …

• AfDB will provide US$98.62 million to Burundi in the form of grants and US$597.79 million to Tanzania in the form of loans and guarantees.
• The Joint SGR Project plays a pivotal role in fostering development, facilitating trade, and enhancing accessibility across East Africa.
• Investment will also unlock and connect key economic processing zones, industrial parks, Inland Container Depot, and population centers along the central corridor.

The Board of AfDB has taken a significant step in advancing East Africa’s regional connectivity and infrastructure development by approving a total financing package of U$696.41 million for Burundi and Tanzania Standard Gauge Railway (SGR) Project.

This funding is designated for the initiation of Phase II of the Joint Tanzania-Burundi-DRC SGR Project. The ambitious investment aims to construct 651 kilometers on the Tanzania-Burundi railway line, a key component of the broader effort to enhance transportation and trade links in the East African region.

The financing …

• Kenyan and Nigerian stores will soon experience absence of Procter & Gamble (P&G) products, as the American multinational embarks on a phased withdrawal.
• In Kenya, P&G has set its sights on leaving Nairobi by June 2024, citing high cost of doing business, dollar shortages, and dip in sales.
• P&G’s response to these challenges involves increased pricing as a strategy to mitigate currency impacts, but this has seen it lose market share to rivals.

The shelves of Kenyan and Nigerian stores will soon experience a noticeable absence of Procter & Gamble (P&G) products, as the American multinational consumer goods manufacturer embarks on a phased withdrawal from these markets.

The decision stems from the challenging macroeconomic and fiscal conditions prevailing in both countries. Specifically, in Kenya, P&G has set its sights on leaving Nairobi by June 2024, citing a confluence of factors such as the high cost of doing business, dollar shortages, …

• Addressing the pressing issues of chronic hunger FAO’s blueprint is projected to impact 600 million people by 2030.
• According to FAO, the roadmap envisions transforming agrifood systems from a net emitter to a carbon sink.
• It calls for alternative production methods, adjusted consumption patterns, refined forestry management, and innovative technologies such as carbon capture.

The United Nation’s Food and Agriculture Organization (FAO) has initiated the process for the development of a groundbreaking global roadmap aimed at eliminating hunger and all forms of malnutrition without exceeding the 1.5°C threshold set by the Paris Agreement.

The United Nations’ Food and Agriculture Organization (FAO) has embarked on a pioneering initiative to craft a global roadmap that holds the ambitious goal of eradicating hunger and all manifestations of malnutrition while adhering to the 1.5°C threshold outlined in the Paris Agreement.

“FAO’s Global Roadmap for SDG2 and 1.5°C underscores the importance of climate financing …

• Eastern Africa and Western Africa account for 70 per cent of Africa’s population unable to afford a healthy diet.
• About 30 per cent of Africa’s children bear the indelible mark of stunted growth, a cruel consequence of malnutrition.
• Burkina Faso, Djibouti, Mali, Mauritania, and Niger emerged with the highest prevalence rates of child wasting above 10 per cent.

Food crisis in Africa is deepening with a new report showing that an estimated one billion people in the continent are unable to afford a healthy diet. Painting a grim picture for the continent, the Africa Regional Overview of Food Security and Nutrition – Statistics and Trends 2023 report adds that a total of 282 million people in Africa, roughly 20 percent of the population, including millions of children, are undernourished. This distressing statistic sadly reflects an increase of 57 million people since the onset of the COVID-19 pandemic.

“After a long …

• This initial batch is designed to sustain the facility’s ambitious goal of processing 350,000 barrels per day during its initial operational phase.
• The 650,000 barrels per day Dangote Petroleum Refinery can process most African crude grades as well as Middle Eastern Arab Light and even US Light tight oil as well as crude from other countries.
• A major step towards boosting Nigeria’s domestic refining capacity and attaining energy security (self-sufficiency).

Dangote Refinery, a 650,000 barrels per day plant has started operations by striking strategic alliances and resource acquisitions as it seeks to redefine Nigeria’s oil industry standards.

One such landmark development is the recent procurement by the Dangote Petroleum Refinery and Petrochemicals plant of 1 million barrels of Agbami crude grade from Shell International Trading and Shipping Company Limited (STASCO).

This significant move marks a crucial step in the refinery’s journey, as it not only serves to facilitate …

• Africa stands to lose up to $25 billion annually due to the direct impact of the EU Carbon Border Tax Adjustment Mechanism.
• With Africa’s energy deficit and reliance mainly on fossil fuels, especially diesel, the implication is that Africa will be forced to export raw commodities again into Europe.
• New carbon tax could severely impede Africa’s progress by penalizing value-added exports in industries such as steel, cement, iron, aluminum, and fertilizers.

In a stark warning, African Development Bank (AfDB) Group President, Dr Akinwumi Adesina, has raised concerns about the potential ramifications of the new EU carbon border tax on Africa’s trade and industrialization efforts.

Dr Adesina says that this tax could severely impede Africa’s progress by penalizing value-added exports, specifically targeting crucial industries such as steel, cement, iron, aluminum, and fertilizers.

The imposition of carbon tax would have a profound impact on the continent’s ability to compete in the global …