Browsing: paris club

• East Africa’s economic growth is projected to grow at 5.3 and 5.8 per cent in 2024 and 2025-26, respectively. 
• The World Bank projects African economies to grow by 3.4 per cent in 2024.
• However, faster and more equitable growth is needed to reduce poverty.

East Africa’s economic growth to lead the continent

Economies in East Africa are expected to spearhead growth in Sub-Saharan Africa this year amid increased private consumption and declining inflation, which are supporting an economic rebound in the region.

The World Bank’s latest Africa’s Pulse report indicates the East African Community is projected to grow at the fastest pace at 5.3 and 5.8 per cent in 2024 and 2025–2026, respectively, thanks to robust growth in the Democratic Republic of Congo, Kenya, Rwanda, and Uganda.

This is higher than the compounded growth for Sub-Sahara Africa, which, albeit rebounding from a low of 2.6 per cent in 2023, is …

• Uganda’s Public Debt sources from China and commercial banks have been increasing.
• Finance indicates that the share of multilateral credit stood at 61.7 per cent, representing an 8.9 percent reduction from June 2016 when it was 70.6 per cent
• Ministry of Finance data indicates that the share of commercial bank loans has been growing rapidly, with an increase of US$1.33b, or 10.39 per cent, by June 2022

According to the Status of Uganda’s Debt report, multilateral lenders remain the largest source of credit for Uganda. However, the report shows that the share of debt sourced from multilateral lenders has been decreasing, while other sources such as China and commercial banks have been increasing their share.

As of June 2022, data from the Ministry of Finance indicates that the share of multilateral credit stood at 61.7 per cent, representing an 8.9 per cent reduction from June 2016 when it was 70.6 …

The lender stated during the conference that the country’s economic objectives were still under threat from unsustainable debt.
The government announced last week that external debt grew to US$13.7 billion in September, up from roughly US$10.7 billion the previous year.
Zimbabwe’s debt accounts for more than half of the country’s GDP.…

The Paris Club (Club de Paris), a group of officials from major creditor countries has approved Kenya’s request for more debt relief to help it ease Covid-19 related financial weight.

Formed in 1956, the Paris Club, which works to find sustainable solutions to payment difficulties experienced by debtor countries, announced earlier this month that it had accepted Kenya’s request for debt-servicing suspension and gave the East African country a six-month leeway (January to June) before it resumes to pay its national debt.

“Kenya is committed to devoting the resources freed by this initiative to increase spending in order to mitigate the health, economic and social impact of the COVID19-crisis,” said the Paris Club.

Maybe the rest of East Africa can learn from Kenya and take advantage of the G20 bilateral creditors that offer what is called the Debt Service Suspension Initiative (DSSI). Launched last year, the DSSI serves to suspend …