IFC and East Africa Bank unveils US$5m trade finance guarantee to support businesses in Djibouti

DJIBOUTI – The International Finance Corporation (IFC), a member of the World Bank Group, has announced a US$5 million trade finance guarantee facility to Djibouti- based East Africa Bank (EAB) to help local companies engage in cross-border trade. The support is a vital engine of economic growth that has been strained by the COVID-19 pandemic, IFC’s trade finance facility guarantee of up to US$5 million under its Global Trade Finance Program (GTFP) will help EAB provide financing to importers and exporters in Djibouti, supporting the local economy and helping maintain…

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AfDB, SEC Ghana launch US$400,000 project to strengthen capital markets

GHANA – The African Development Bank Group (AfDB) and the Securities and Exchange Commission (SEC) of Ghana have launched a US$400,000 project to strengthen the development of Ghanaian capital markets. This follows the signing of a grant agreement to develop a risk-based supervisory solution for the local capital market. The grant, from the African Development Bank’s Capital Markets Development Trust Fund will finance the provision of technical assistance and capacity building for the SEC, the markets regulator, and the Ghana Stock Exchange. The project will enhance the SEC’s institutional capacity…

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OPEC Fund extends US$50m for poverty reduction in Tanzania

TANZANIA – The OPEC Fund for International Development (the OPEC Fund) has signed a US$50 million loan with Tanzania to finance the ‘Fourth Tanzania Poverty Reduction Project’.   The project will build rural infrastructure to boost economic opportunities and improve access to social services for more than 900,000 people. Although Tanzania has made progress in reducing poverty over the past decade, around 26 million people, close to half the total population live on less than US$1.90 per day.  The Tanzanian government has launched a number of programs to tackle this…

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Madagascar reaches deal with IMF for US$320m financing

MADAGASCAR – The government of Madagascar has reached a staff-level agreement with the International Monetary Fund (IMF) for the disbursement of US$320 million to support the country’s economic reforms. In an official statement, the Fund said the new deal is an Extended Credit Facility set up to assist the country in the implementation of its economic reforms whose  goal is to support the post-Covid-19 recovery, improve and sustain inclusive growth and reduce poverty. Last year, Madagascar suffered an economic decline of more than 4% due to the harsh blow to the…

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Kenya in first recession since 2000 as Covid-19 ravages the economy

KENYA – Kenya slid into a recession for the first time in two decades in the third quarter of 2020 as measures introduced by the East African nation to slow the spread of the Covid-19 pandemic continued to hurt output. Gross domestic product in East Africa’s biggest economy fell 1.1% compared with a year earlier, after shrinking a revised 5.5% in the second quarter, the Kenya National Bureau of Statistics told Money Web. The outcome matched median of three economists’ estimates in a Bloomberg survey. Before the decline in the…

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Kenya-UK sign trade agreement to promote regional trade

KENYA – Kenya and the United Kingdom have signed a strategic Economic Partnership Agreement (EPA), following the conclusion of recent negotiations between the two countries. The agreement, to secure the mutual interests of the two partners after Brexit, replicates the effects of the East African Community (EPA) with the European Union that facilitates EAC exports, free of duties and quotas, to the European Union market. Kenya’s Trade Cabinet Secretary Betty Maina said it is grounded on the vision of President Uhuru Kenyatta and UK Prime Minister Boris Johnson. “We have…

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Moody’s downgrades Uganda’s economy to Ba3

UGANDA – Moody’s global rating agency has adjusted Uganda’s economic strength downwards by one notch to “ba3” from “ba2 stable’’ due to relatively low productivity and high transport costs. In its annual  annual credit analysis of Uganda done on October 7, 2020, Moody’s explained that Uganda’s economic strength is assessed as “ba3” to reflect the economy’s small size and low wealth levels and thereby its limited shock absorption capacity, balanced against favourable medium-term growth prospects. COVID -19 pandemic crisis continues to weigh on the short-term outlook and a significant increase in…

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Tunisian economy contracts 22% as COVID-19 continues to cripple key sectors

TUNISIA – The economy of Tunisia which is highly dependent of Tourism has continued to suffer from the effects of the COVID-19 pandemic. A report by Reuters Africa indicated that the economy of the North African country shrank 21.6 pct in the second quarter of 2020, compared to the same period last year, due to the coronavirus crisis. The poorly performing economy has negatively impacted the livelihood of many Tunisians, pushing unemployment to new record levels. Tunisia’s state statistics institute reported that the country’s unemployment rose to 18 percent in…

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Egypt’s economy may rebound to 6.5% in 2021- new IMF forecast shows

EGYPT – The International Monetary Fund (IMF) has released a new forecast for Egypt’s economy projecting that the economy may rebound to a peak of 6.5% in 2021/2022 despite being expected to fall to a low of 2% this year due to COVID-19 pandemic. IMF clarified that this percentage came as the global recovery is now expected to be more gradual and domestic activity is projected to remain weak for longer.  “The COVID-19 outbreak is driving a downward revision to Egypt’s growth by the IMF from 5.5 percent to 2…

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COVID-19 pushes Ghana into deepest economic contraction in 40 years

GHANA – The raging COVID-19 health and economic crisis has pushed Ghana into what economists describe as the deepest short-term economic contraction in 40 years. Data released by the Bank of Ghana indicates that the socio-economic restrictions imposed by government made the economy to contract by 10.6 percent during the second quarter of the year. Bank of Ghana noted that the government imposed three weeks lock down on Ghana’s largest cities of Accra and Kumasi contributed to the country’s worst economic contraction in 4 decades. The BoG’s Composite Index of…

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