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☆ World Bank suspends $1 bln worth of project funding in Congo
▼ + stars: | 2023-05-16 | by ( Sonia Rolley | ) www.reuters.com time to read: +3 min

The suspension will affect more than 600,000 beneficiaries, including victims of sexual violence, the World Bank told Congo's finance minister last week in a letter seen by Reuters. A World Bank spokesperson confirmed its authenticity. On May 4, Congolese President Felix Tshisekedi dissolved the structure, the "Social Fund of the Democratic Republic of Congo", by presidential order and created another public fund. A spokesperson for Congo's finance ministry said he was waiting for the go-ahead from the presidency before he could comment. Four of Congo's main opposition politicians wrote to the leaders of the International Monetary Fund, the World Bank and the African Development Bank last week asking them to conduct an audit of their funds in Congo, saying they suspected misuse.

☆ African Devt Bank proposes 'fast track' compensation for Zimbabwe white ex-farmers
▼ + stars: | 2023-05-15 | by ( Nyasha Chingono | ) www.reuters.com time to read: +2 min

HARARE, May 15 (Reuters) - The African Development Bank (AFDB) has developed financial instruments to "fast track and front load" $3.5 billion in compensation to white farmers whose land was taken from them by Zimbabwe's government, the bank's president said on Monday. Zimbabwe agreed in 2020 to compensate local white farmers whose land was taken by the government from 2000 onwards to resettle Black families, in one of the most divisive policies of the Robert Mugabe era, while foreign white farmers were allowed to apply to get seized land back. Adesina said the new proposal to former white farmers would "help leverage the capital markets to fund the compensation without adding debt to Zimbabwe," without providing further details. Adesina said that 91% of Zimbabwe's multilateral debt and 61% of its bilateral debt is in arrears. "The government takes full ownership of the debt process and the implementation of reforms," Finance Minister Mthuli Ncube told the press conference.

ACCRA, May 14 (Reuters) - Ghana expects the International Monetary Fund to approve a first loan tranche of $600 million as soon as Wednesday, paving the way for disbursement within a week, Minister of State in the Finance Ministry Mohammed Amin Adam told Reuters on Sunday. Ghana is seeking $3 billion from the Fund to shore up its battered economy. On Friday, IMF Managing Director Kristalina Georgieva said Ghana's official creditors had provided the necessary financing assurances for the IMF Executive Board to look at signing off on the loan. Adam said he expected negotiations with both sets of creditors to go well once the IMF signs off on the loan. Adam said the government was also in talks with the African Development Bank for over $100 million for the stability fund.

[1/2] Mourners hold a poster during the state funeral of Zimbabwe's longtime ruler Robert Mugabe at a national sports stadium in Harare, Zimbabwe, September 14, 2019. Still, some farmers say they will reject the government's $3.5 billion compensation package for being inadequate financially and for paying scant regard to land restitution or restoring property rights. Farmers say the plan was agreed by the Commercial Farmers Union in July 2020 and subsequently revised without adequate consultation. "The offer of bonds represents a very significant reduction in value with a prolonged redemption period," Gilpin, 67, told Reuters. The government was continuing discussions with farmers over appropriate payment methods and time frames, Ncube said.

☆ China in talks on emerging economy debt workout compromise -WSJ
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +2 min

April 11 (Reuters) - China is negotiating a compromise plan with other major creditors that could help break a logjam in debt-relief talks for struggling developing nations, the Wall Street Journal reported on Tuesday. Negotiations could then move on to the details of Zambia’s debt restructuring, such as extending repayment deadlines and lowering interest rates. China continues to oppose taking losses on the face value of its loans, people close to Beijing’s decision-making told the paper. Top officials from China will attend the World Bank and International Monetary Fund spring meetings in Washington this week, their first attendance in person in three years after COVID-19 curbs limited them to virtual participation. The Chinese officials are expected to take part in Wednesday's Global Sovereign Debt Roundtable meeting to discuss the matter.

☆ Nigeria launches $672 million tech fund for young investors
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

LAGOS, March 14 (Reuters) - Nigeria launched a $672 million fund on Tuesday to support tech and creative sectors for young investors who struggle to raise capital in Africa's largest economy. So far only Chipper Cash, a cross border payments startup, has said it had $1 million in SVB. Vice President Yemi Osinbajo launched the $672 million fund under the Digital and Creative Enterprises Programme (DCEP) in the federal capital Abuja, the presidency said in a statement. African Development Bank will put in $170 million, $116 million will come from Agence Francaise de Developpement and another $70 million from Islamic Development Bank, the presidency said. The government through Bank of Industry Nigeria will release $45 million while the private sector pledged $271 million.

Summary Customs delays, tariff uncertainty and soaring global demand have hiked solar costs and delayed projects as the U.S. weans itself off Chinese dependence. The Biden administration's Uyghur Forced Labor Protection Act (UFLPA) prevents the import of goods produced using forced labour in China’s Xinjiang Province, including much of the polysilicon used in solar panels. UFLPA checks have blocked panel imports at the U.S. border, delaying projects and driving up project costs. CHART: Solar manufacturing capacity by country, regionSource: International Energy Agency's Report on Solar PV Global Supply Chains, August 2022The UFLPA requires visibility into labour practices along the solar value chain. Lightsource bp has contracted for more than 20 million solar panels through 2028 and is considering imports from Southeast Asia, Turkey and India, Smith said.

As Africa struggles with economic headwinds caused by the COVID-19 pandemic, the war in Ukraine and, notably, Washington's own monetary policy, Africans are asking for proof the United States will stay the course this time. African countries have become collateral victims of this year's rate hikes by the U.S. Federal Reserve, aimed at curbing inflation at home. African countries are also finding it harder to access capital markets to meet their fiscal needs and refinance maturing debt. The United States, meanwhile, has largely failed to offer viable alternatives to cheap Chinese credit, officials said. One senior U.S. Treasury official said the United States had long been engaged in Africa, funding anti-HIV work and working on other health issues.

☆ China tells U.S. to fix its own debt problems after Yellen Africa remarks
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +2 min

WASHINGTON, Jan 24 (Reuters) - After U.S. Treasury Secretary Janet Yellen called China a "barrier" to debt reform in Africa this week, Chinese officials in Zambia had a pointed response - get your own house in order. So far, the Biden White House is refusing to negotiate, counting on hardline Republicans to step back under pressure from businesses, investors and moderates. Yellen and International Monetary Fund Managing Director Kristalina Georgieva arrived separately in Zambia Sunday to highlight the need for debt reform in Africa. The U.S. Federal Reserve's rate increases, designed to tame inflation at home, and the appreciating U.S. dollar have added to African countries' debt service burden, the African Development Bank said last week. Reporting by Andrea Shalal; Writing by Heather Timmons, Editing by William MacleanOur Standards: The Thomson Reuters Trust Principles.

☆ China tells US to fix its own debt problems after Yellen Africa remarks
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +2 min

☆ Creative green finance can go a long way in 2023
▼ + stars: | 2023-01-23 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

PARIS, Jan 23 (Reuters Breakingviews) - Rich democracies are increasingly keen to help the Global South fight climate change. Though they will struggle to write big cheques, there are ways to make a little cash go a long way. The good news is rich countries have ways to get money flowing without dipping much into their own pockets. One plan is for multilateral development banks (MDBs) to use their balance sheets more aggressively to fight climate change. Rich countries should therefore put more capital into those MDBs that show the most enthusiasm for the task.

☆ Egypt commits to IMF to slow projects, increase fuel prices
▼ + stars: | 2023-01-10 | by ( Patrick Werr | ) www.reuters.com time to read: +2 min

Among its pledges is one to slow investment in public projects, including national projects, so as to reduce inflation and conserve foreign currency, without specifying where cuts might fall. The IMF board of directors approved the 46-month Extended Fund Facility (EFF) on Dec. 17. Egypt's pound has been allowed to fluctuate more than before since its third devaluation in less than a year last week. Under the facility, the IMF will provide Egypt with about $700 million in the fiscal year that ends in June. Reporting by Patrick Werr, Editing by Aidan Lewis and Ed OsmondOur Standards: The Thomson Reuters Trust Principles.

☆ Opinion: It's time for African countries to consider a climate tax on exports
▼ + stars: | 2022-11-24 | by ( Adjoa Adjei-Twum | ) edition.cnn.com time to read: +7 min

I welcome progress here, as African nations are bearing the brunt of climate change. It is now time for African nations to levy a climate export tax on commodities, such as cocoa and rubber, to help pay for climate adaptation. Adaptation is all about building resilience and capacity, and I believe our governments, banks, and businesses must also adapt. Additionally, G20 countries are asking their banks to forecast how risky their loans are due to climate change. It is a wake-up call for African governments, banks, institutions, and companies to unite, step up, and adapt to a new climate reality.

It also referred to the need to reform international financial institutions. It should lead to a tripling of the amount international financial institutions lend "with a clear focus on climate and sustainable development goals," Prasad said. Similarly, Akinwumi Adesina, head of the African Development Bank said: "If you want to do more, you actually need more." "There has to be a lot more increase in capital, for the multilateral development banks," he told Reuters. "Our international financial architecture is built for a different time and different challenges," he said.

"There's now a big push to get nature into sovereign debt markets," said Simon Zadek, executive director at NatureFinance, which advises governments on debt-for-nature swaps and other types of climate-focused finance. At that level, it would be the biggest debt-for-nature swap struck to date. The combined value of swap deals to date is $3.7 billion, according to the data. Securing the buy-in of development banks is usually key for the economics of a deal. The WWF has projects in Central and South America where they are monitoring deforestation by tracking jaguars, said Brenes, who has worked on debt-for-nature swaps for the last 25 years.

"Africa must have natural gas to complement its renewable energy," African Development Bank President Akinwumi Adesina said Friday on the sidelines of the U.N. conference, being held in Sharm el-Sheikh, Egypt. Even if Africa were to triple its production of natural gas from current levels, its contribution to global emissions would only rise by 0.67%, he said. It has also put 85% of its investments between 2016-2021 into renewable energy. Still, natural gas is needed to balance out the electricity supply given the intermittent nature of renewables, he said. "My interest is how Africa uses natural gas as part of its energy mix to provide electricity for 600 million people today that don't have access to electricity."

☆ EXCLUSIVE S.Africa's energy transition plan needs $46.5 bln, five times pledges - sources
▼ + stars: | 2022-10-21 | by ( Tim Cocks | ) www.reuters.com time to read: +4 min

Giant wind turbines dot the landscape at the Darling Wind Power national demonstration project near Cape Town July 17, 2009. The project is the country's first independent wind power producer and currently has four turbines, with plans for another six. South Africa is also seeking to become a hub for so-called green hydrogen and electric vehicle manufacturing -- both of which could attract significant private sector investment. Coal makes up four-fifths of South Africa's power generation, so turning state utility Eskom to renewables is a priority for the government. Moving South Africa's economy into greener energy will require vast funds in the longer term, with some analysts estimating at least $250 billion over the next three decades.

☆ How West can mobilise trillions to help save Earth
▼ + stars: | 2022-10-10 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

LONDON, Oct 10 (Reuters Breakingviews) - War, inflation, debt, hunger, energy security and fear of recession will dominate the discussions at the annual meetings of the World Bank and International Monetary Fund this week. America and a group of other countries have given the World Bank until December to come up with a plan. Register now for FREE unlimited access to Reuters.com RegisterThe West has self-interested reasons to mobilise trillions of dollars to help the poorer nations of the so-called Global South transition from fossil fuels. But getting this money to flow to the Global South is tough because investors don’t think the returns on offer justify the risks. It is therefore encouraging that America and other leading shareholders have given the World Bank its marching orders and that Malpass has responded positively.

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