Browsing: IMF

• Africa’s urban population is poised to hit almost one billion in 2035.
• This population explosion poses both threats and opportunities.
• Population growth will grow more dynamic and wealthier consumer markets.

The ongoing population explosion in Africa poses both opportunities for economic growth and threats that could dampen the hopes for billions of people. According to the latest surveys, the African continent is expected to record one of the fastest rates of population growth worldwide.

For instance, insights from the Economist Intelligence Unit’s African Cities 2035 report states, “African cities will record rapid urbanization in the next decade, creating a mixed bag of socio-economic opportunities and challenges.”

“Africa has and will continue to have the fastest rate of urbanization of the world’s major regions through 2035. Africa’s urban population will rise from about 650 million in 2023 to almost one billion in 2035,” reads the report in part.

According to …

• Africa is increasing borrowing on global capital markets.
• Eurobonds are the preferred borrowing option for most African countries.
• The IMF advices setup of a rescue plan for African borrowers, in lure of another global crisis.

Africa capital market access is improving as the world markets start seeing a return to lower interest rates. Between 2007 and 2020, more than 20 African countries tapped into international capital markets to finance their ambitious development plans.

According to the International Monetary Fund (IMF), most of these countries opted for Eurobonds issued by global financial centres.

“Along with this access to the markets came scaled-up lending from bilateral lenders, especially China, and continued access to loans from the multilateral organizations like the IMF and World Bank,” reports Gregory Smith, author of ‘Where Credit is Due: How African Debt Can Be a Benefit, Not A Burden’.

But after a pause by big lenders such as …

• Tanzania has received $149.4 million for budget support from the IMF.
• The lender has commended Dodoma’s ongoing economic reform and diversification plan.
• IMF approves $786.2 million for Resilience and Sustainability Facility (RSF) 

Days after the International Monetary Fund (IMF) ranked Tanzania third on its list of top-performing African economies, its Executive Board has announced an immediate disbursement of about $149.4 million for budget support after completing the third review of the country’s Extended Credit Facility (ECF).

“The Executive Board also approved a 23-month arrangement under the Resilience and Sustainability Facility (RSF) of about US$786.2 million to support Tanzania’s efforts to build resilience to climate change,” the IMF reports.

In its report, the IMF attributed Dodoma’s economic performance to the country’s commitment to economic reform and diversification. The multilateral lender noted that the country is currently focusing on attracting foreign investment, promoting sustainable development, and fostering a favorable business climate.

The …

• Antoinette Monsio Sayeh is set to retire as Deputy Managing Director of the International Monetary Fund (IMF) on September 12, 2024.
• The IMF says her experience, deep integrity, and wise judgment have been invaluable to the global lender.
• Antoinette Sayeh oversaw several vital initiatives of operations, policies, and corporate priorities, drawing on her deep knowledge of the institution.

Liberian management icon and trailblazer Antoinette Monsio Sayeh is set to retire from the International Monetary Fund (IMF) on September 12, 2024.

In an update by the IMF Managing Director Kristalina Georgieva, Antoinette Sayeh will conclude her tour of duty in the Washington-based institution this September where she has been serving as the Deputy Managing Director since 2020.

At the helm, she served with deputy managing directors Kenji Okamura (Japan), Bo Li (China) and Gita Gopinath (US/India) who is the first managing director.

“Antoinette has been a pillar of the Fund’s leadership …

• New investment in Tanzania’s railways sector is expected to directly benefit nearly 900,000 people and indirectly impact an estimated 3.5 million.
• Tanzania operates two railway systems, totaling 3,682 km in length.

Tanzania railway sector is poised for immense growth as the World Bank poured significant funding by approving $200 million in financing from the International Development Association (IDA) which is a part of the bank.

According to available information from the World Bank statement made on Friday, the bank said the financing for the second phase of the Tanzania Intermodal and Rail Development Project (TIRP-2) will improve safety, climate resilience, and operational efficiency along this railway segment.

Read also: AfDB approves $696.4M financing for Tanzania-Burundi-DRC railway project

Tanzania railway plan anchored on Dar- Morogoro SGR

The funding comes a few weeks after Tanzania Railways Corporation (TRC) began its inaugural trial journey of the electric Standard Gauge Railway (SGR) train …

• The IMF has approved an expansion of the original economic rescue program for Egypt by $5 billion.
• Spillovers from the recent conflict in Gaza and Israel aggravated the shaky economic situation in Egypt.
• Egypt has recently taken difficult but necessary reforms to correct the country’s microeconomic imbalance.

IMF’s Economic Rescue Program for Egypt

The Executive Board of the International Monetary Fund (IMF) has completed the first and second reviews of Egypt’s Extended Fund Facility (EFF)arrangement, approving an expansion of the original economic rescue program by $5 billion.

The IMF had initially approved a $3 billion loan in December 2022 but has …

• The BRICS-owned New Development Bank (NDB) was established in 2015 by Brazil, Russia, India, China, and South Africa.
• The multilateral lender plans to disburse about $5 billion in loans this year.
• The bank has an initial verified capital of $100 billion and a subscribed capital of $50 billion.

Emerging economies could give the superpowers a run in the lending sector with the the BRICS alliance planning to disburse about $5 billion in loans this year. This was announced by the bloc’s New Development Bank (NDB) Vice President Zhou Qiangwu on Tuesday, March 26.

As China, one of Africa’s closest trade partners, experiences …

• As national debts grow, many African countries find themselves spending more on debt than on health.
• IMF says the debt ratio in Sub-Saharan Africa surged to 60% from 30% of the countries’ GDP between 2013 and December 2022.
• Kenya is for instance using nearly 60% of its annual revenues on paying debt obligations.

As the Africa debt crisis roils, over half of the countries have found themselves spending more money in servicing their loan obligations than even the amount they have budgeted for health services to their citizens.

This unfolding scenario is further burdening millions of their citizens who have little choice but to shoulder heavy tax burdens to settle mountains of debt.

Prof Danny Bradlow, a Senior Research Fellow at the Centre for the Advancement of Scholarship in Pretoria, South Africa, captures the dire situation, stating: “over the  last three years (2019/22), more than 25 African governments allocated …

• The IMF has issued Uganda $120 million as part of its Extended Credit Facility (ECF) Arrangement to aid recovery.
• Total disbursement to Uganda under the ECF Arrangement now reaches $870 million.
• IMF urges Uganda to give its Central Bank independence 

Kampala is set to receive $120 million as part of its Extended Credit Facility (ECF) Arrangement with the International Monetary Fund (IMF) to aid Uganda’s economic recovery amidst various challenges, including backlash due to a harsh anti-LGBTQ law.

The IMF executive board has approved immediate disbursement of the said amount after the conclusion of its fifth review of Uganda’s ECF Arrangement. “This brings the aggregate disbursement under the ECF Arrangement to about $870 million,” the IMF note says in part.

Uganda qualified for about $1 billion under the ECF Arrangement as of June 2021, which is now distributed in part every other year.

IMF loan to aid Uganda’s economic recovery

• Nigeria’s cost of living crisis has been the worst in decades, exacerbated by worsening food insecurity and record inflation. 
• The lack of enough resources has led to insecurity in Nigeria as people fight for scarce resources and food.
• In response to Nigeria’s cost of living crisis, Tinubu announced a state of emergency in July and intends to begin grain distribution in the coming weeks.

Tinubu’s Reforms worsen Nigeria’s cost of living crisis

Nigeria, Africa’s largest economy, is grappling with the worst cost of living crisis in decades and a worsening food security situation. A significant portion of the population is experiencing extreme food insecurity. After assuming power in May 2023, Bola Tinubu’s administration adopted bold but unpopular reforms that further strained the already-battered economy.

Nigeria imports food and fuel and was buffeted by rising commodity prices due to a glim global economic situation in the last two years. President Tinubu …