Browsing: World Bank

Kenya’s monetary policy to be under continued hostage throughout 2022

Economic Growth

The National Treasury is projecting real GDP growth of 6.0 per cent and 5.8 per cent for 2021 and 2022 respectively and has used the same as the basis for its revenue projections. But this adds to the overall optimism being projected.

In September 2021, the Central Bank of Kenya Governor projected a 6.1 per cent growth rate for 2021 and 5.6 per cent in 2022.

The International Monetary Fund’s most recent forecast puts 2022 growth expectations at 6.0 per cent. The World Bank, on the other hand, projects growth to print at 4.5 per cent and 4.7 per cent in 2021 and 2022 respectively.

We really believe this optimism being projected around is largely irrational and the story of Kenya’s economic growth still remains a puzzle to us. 

IMF says no debt relief for Zimbabwe unless it clears World Bank arrears

Countries

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.

Uganda’s economy looking up giving hope for improved livelihoods

Industry and Trade

The World Bank released the country’s 18th Economic update in the first week of this month.

According to the institution, the change was majorly impacted by improvement in road and bridge building, the acquisition of additional aircraft for the continued revival of Uganda Airlines, and large classified investments.

Uganda has in the recent past heavily deployed and channelled its national cake towards improving its shambled infrastructure especially the road, railway, water and air transport systems.

ethiopia military confrontation1

Restoring peace in Ethiopia, building Africa’s largest dam

Ethiopia

In June, the Voice of America reported that a bomb had gone off at a market in Tigray at about 1 pm, right when the market would be at its busiest time. At least 43 people were killed and dozens of others wounded.

This was June 22, a day after Ethiopia held its sixth national elections and a fortnight from the commencement of the second filling of the GERD.

Will fighting in Tigray deter Ethiopia’s GERD plans?

Ethiopia’s economy cannot hold with more conflict

Investing

Since November 2020, Tigray’s rebel forces have been fighting Ethiopia’s military forces, leaving hundreds in humanitarian crises and with countless deaths. This poses a threat to the rest of the region and to Ethiopia’s development initiatives. Ethiopia’s two neighbouring countries, South Sudan and Somalia, are also in deep civil conflict.
The World Bank (WB), one of Ethiopia’s close development partners, argues that its location gives this nation of more than 112 million people a strategic dominance as a “jumping-off” point in the Horn of Africa, close to the Middle East and its markets.
The second most populous country with the fastest growing economy in the region has impressed the globe with its development pace, from enhancing its aviation power to increasing infrastructure to make the country more accessible and up to speed.

In focus: Climate finance and its impact on Africa

Africa's Development

China had been funding the development and exploitation of massive coal reserves in countries like Indonesia and Vietnam under an initiative called the Belt & Road but has come under pressure as the world tries to honour its Paris climate agreements.

This Belt & Road initiative is a strategy initiated by the People’s Republic of China that seeks to connect Asia with Africa and Europe via land and maritime networks with the aim of improving regional integration, increasing trade and stimulating economic growth. 

To realize this vision required the use of natural resources which China does not have entirely but other nations do and would then secure supply of this through the development of resources such as coal mines in developing countries. The Chinese are reportedly developing a US$3 billion coal mine in the Hwange area of Zimbabwe.