Browsing: African Development Bank (AfDB)

Eastern Africa Power Pool
  • The Eastern Africa Power Pool has made major inroads in increasing cross-border electrification.
  • The system has the potential to connect 600 million people to clean energy.
  • EAPP member countries are Burundi, Democratic Republic of Congo, Djibouti, Egypt, Ethiopia, Kenya, Libya, Rwanda, Somalia, South Sudan, Sudan, Tanzania, and Uganda.

The Eastern Africa Power Pool (EAPP) is targeting to go live on power auctioning (trading) by December this year, the secretariat now indicates, in what will allow the 13-member countries to sale excess electricity across borders.

This comes as countries continue to build a strong power connection network, amid huge investments in renewable energy mainly solar, wind, hydro and geothermal.

The EAPP member countries are Burundi, DRC, Djibouti, Egypt, Ethiopia, Kenya, Libya, Rwanda, Somalia, South Sudan, Sudan, Tanzania, and Uganda.

Council of Ministers and the EAPP Steering Committee met in Nairobi this week to deliberate on the future of the power pool …

AfDB | fastest growing economies 2024
  • According to the African Development Bank’s Macroeconomic report, Africa will dominate the world’s 20 fastest growing economies 2024.
  • According to the report, the medium-term growth outlook for the continent’s five regions is slowly improving.
  • The report forecasts more substantial growth for Africa in 2024, outpacing the projected global average; the continent is the second-fastest-growing region after Asia.

Fastest Growing Economies 2024

The African Development Bank Group’s latest Macroeconomic Performance and Outlook (MEO) indicates real Gross Domestic Product (GDP) growth for the continecustom nfl football jerseys decathlon bmx luvme human hair wigs bouncing putty egg custom kings jersey dallas cowboys slippers mens johnny manziel jersey custom kings jersey custom youth hockey jerseys brock bowers jersey luvme human hair wigs black friday wig sale college football jerseys decathlon bmx uberlube luxury lubricant nt is expected to average 3.8 per cent and 4.2 per cent in 2024 and 2025, respectively.

The report …

DRC Congo, Banks in Congo, Cobalt in Congo
  • Central Africa’s economic performance was powered by the DRC, which grew at a jaw-dropping 8.5% in 2022.
  • Central Africa growth rate was higher than the African average, which is estimated at 3.8% in 2022, down from 4.8% in 2021.
  • The region id projected to settle at 4.9% in 2023 and 4.6% in 2024.

Central Africa achieved real GDP growth of 5.0 per cent in 2022 compared with 3.4 per cent in 2021, as the region posted the strongest performance compared to other regions in the continent.

This was in terms of growth, inflation and budget deficit, a new report by the African Development Bank (AfDB) indicates.

Central Africa oil, minerals and commodities’ wealth

The rebound in economic activity was driven by favourable prices for raw materials. Increasingly, Central Africa economies are turning out to be a net exporter of crude oil, minerals and other commodities.

In comparison, the region’s …

President William Ruto
  • Kenya is among countries that are heavily indebted with the loan stock at staggering 67.3 per cent of GDP.
  • Total debt stood at $67.7 billion (Ksh9.6 trillion) as of April, Central Bank of Kenya data shows.
  • This comprised $35.9 billion external debt and $24.6 billion borrowed from the domestic market.

President William Ruto is calling for “urgent” redesigning of global financial institutions to ensure fairness in financing of economies, as he continues to lash out at the West over debt traps in poor states.

In what seems to be a swing at the International Monetary Fund and the World Bank, Dr Ruto is pointing to a post-colonial Africa where development has stalled due to limited resources to liberate economies.

Lenders placing debt traps in poor States

This is from what Dr Ruto terms institutions that were extractive by design; only placing debt traps in poor states. Over the years, Kenya’s …

Stock market defies disputes over presidential poll results
  • Kenya’s Nairobi Securities Exchange posted drop in capitalization in April due to investor flight.
  • Other poorly performing bourses were Uganda, Mauritius, Namibia, Morocco, Tanzania, Rwanda and Tunisia.
  • Zambia, South Africa, Ghana and Egypt remained positive railing Zimbabwe and Malawi.

Zimbabwe has maintained the lead in the African equity markets returns by recording the highest gains at 112.33 percent year-to-date, the latest data shows. In the period under review, Malawi recorded the highest month-on-month value of 10.96 percent.

At the same time Kenya posted the highest drops both on year-to-date and month-on-month, Nairobi Securities Exchange (NSE) monthly barometer indicates, which stood at negative 15.56 percent and minus 3.52 percent, respectively.

Other poor performers across Africa were Uganda, Mauritius, Namibia, Morocco, Tanzania, Rwanda and Tunisia. In West Africa, Nigeria performed poorly on the month-on-month index but remained positive year-to-date. Zambia, South Africa, Ghana and Egypt remained positive railing Zimbabwe and Malawi.

Kenya’s …

Kenyans in the diaspora | Diaspora remittances
  • Kenya is among the top three countries receiving the most international remittances across sub-Saharan Africa, after Nigeria and Ghana. Overall, the US, Saudi Arabia and UK account for nearly three-quarters of total annual inflows into Kenya.
  • Kenyans living abroad sent home $357 million in March 2023, a 15.5 percent increase compared to February.
  • As a whole remittances from the African diaspora are estimated at $95.6 billion annually, making it a key foreign exchange earner.     

Diaspora remittances have risen to become Kenya’s largest foreign exchange earner, surpassing the country’s key exports such as tourism, tea, coffee and horticulture. According to Central Bank of Kenya (CBK) data, diaspora remittances rose by 8.34 percent to $4.027 billion in 2022. In the same period under review, tea exports earned the country $1.2 billion, horticulture $901 million, chemicals $521 million, coffee $301 million and petroleum products $77 million. The widening disparity highlights the crucial role …

East Africa Trade
  • Kenya’s President William Ruto says the free movement was necessary for sustainable growth in the Horn of Africa.
  • Dr Ruto calls on member states in the region to eliminate national boundaries that are chocking growth.
  •  EAC Secretary General Peter Mathuki notes EAC can address challenges in advancing movement of goods and labour.

Barriers to free movement of goods and people are chocking East Africa’s regional integration. To unlock the bloc’s trade potential, Kenya’s President William Ruto is calling in the East African Community (EAC) and the Intergovernmental Authority on Development (IGAD) to remove barriers to free movement. Dr Ruto urges that free movement of people, goods and services can significantly enhance East Africa’s regional integration.

The Kenyan President notes the free flow of goods and capital was necessary for sustainable growth across East Africa.

The President is now challenging regional member states to eliminate national boundaries that have since become …

Green bonds market in Africa skyrocketing
  • Africa’s green bonds market is growing rapidly as the continent increases issuances to power transition to  green energy.
  • The Green and Resilience Debt Platform (GRDP) has been established to address climate financing gaps in Africa.
  • Countries will now have access to $2B in green debt capital markets via the Platform, thereby bolstering resilience against climate change shocks. 

The green bonds market in Africa is showing strong signs of growth as countries move to tackle climate change. The sector is registering a renewed momentum attracting investments in response to the continent’s vulnerability to climate change crisis. For instance, the Nordic Development Fund (NDF) has granted EUR 500,000 to the Green and Resilience Debt Platform (GRDP).

The Fund was established by the UNDP in partnership with UNCDF, European Investment Bank (EIB), Green Climate Fund (GCF) and the European Union’s Global Green Bond Initiative (GGBI). The platform is working with various stakeholders to …

Blockchain and e-commerce
  • The project is billed to help African countries play catchup as the continent is still relatively behind when it comes to global consumer banking habits.
  • The African Development Fund in partnership with Smart Africa Alliance will evaluate policy gaps in the digital trade and e-commerce ecosystems in selected countries that are lagging behind their counterparts in terms of digital trade and e-commerce adaptation.
  • Data by the International Trade Administration (ITA) indicates that the continent is forecast to surpass half a billion e-commerce users by 2025.

The African Development Fund has partnered with Smart Africa Alliance to launch a $1.5 million project aimed at streamlining digital trade and e-commerce policies across 10 African countries.

In a project dubbed Institutional Support for Digital Payments and e-Commerce Policies for Cross-Border Trade (IDECT), the two institutions will evaluate policy gaps in the digital trade and e-commerce ecosystems in the selected countries that are lagging

Japan - Africa
  • African Development Bank tells Japanese investors putting their money in the continent is profitable.
  •  Japan’s Foreign Direct Investments in Africa declined from $10 billion in 2016 to just $4.7 billion in 2020 during Covid-19, before picking up to $6 billion in 2021.
  •  According to AfDB, Africa accounts for only 0.003 percent of Japan’s $2 trillion global Foreign Direct Investments.
  • Japan’s Prime Minister Fumio Kishida announced during the TICAD 8 Summit in Tunis last year $30 billion for Africa, including support for startups.

Africa is keen to increase Japanese investment in the continent, the African Development Bank (AfDB) has indicated amid growing interest from other countries including China, Europe and the US.

The move comes after a slump in Japan’s Foreign Direct Investments (FDIs) in Africa, which declined from $10 billion in 2016 to just $4.7 billion in 2020 during Covid-19, before picking to $6 billion in 2021.

According to AfDB, …