in Depth

Cash-strapped Africa…

The majority of African nations are net food and energy importers. So when Russia invaded Ukraine, they got the short end of the stick as commodity prices rocketed. With such mounting financial pressures amid the ongoing war, large African economies, still recovering from the pandemic, are edging closer to defaulting. Both the IMF and the World Bank are calling for urgent reforms for 2023, in what they have labelled a ‘polycrisis’. How are different countries coping with the growing financial constraints?

World Bank President David Malpass meets with Rabiou Abdou, Niger’s Minister of Planning (back), in Niamey, March 30, 2023.

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exit interview

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‘The development challenge is getting harder, not easier’, David Malpass, World Bank president In an exclusive interview on a trip to West Africa, the outgoing president of the World Bank, David Malpass, sets out his vision of development. Malpa...

The IMF and World Bank Spring meetings take place 10 April – 16 April 2023.. © DANIEL SLIM/AFP

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burden of debt

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World Bank, IMF…Reforms are urgently needed now In the face of a changing and evolving world, crisis after crisis, international lenders must rethink their model. This imperative sets the stage for ...

Blame Game

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Zambia: Debt restructuring delay raises risks of inflationary feedback loop Delays in resolving Zambia’s debt restructuring increase the risks of higher inflation triggered by further kwacha depreciation, Sylvia Mwamba, head o...

© FILE PHOTO: A general view shows the Central Bank of Kenya headquarters building along Haile Selassie Avenue in Nairobi, Kenya November 28, 2018. REUTERS

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borrowing costs

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Kenya: Increasing reliance on domestic debt may not be enough President William Ruto’s administration will be looking more into the domestic capital market to cover Kenya’s KSh695bn ($5.532bn) budget gap in the 2...

© Zambia’s President Hakainde Hichilema meets with IMF managing Director Kristalina Georgieva in Lusaka, Zambia January 23, 2023. IMF Photo/Kim Haughton/Handout via REUTERS

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More pressure

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Zambia: Debt restructuring standoff takes toll on already battered economy Zambia won’t move on if talks to restructure its $12.7bn foreign debt continue to drag on with no solution in sight, says President Hakainde Hichilema...

© African Development Bank (AfDB) President Akinwumi Adesina attends a meeting in Harare, Zimbabwe February 23, 2023. REUTERS

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Murky deals

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Zimbabwe: Government in hot water over external, domestic debt Zimbabwe’s debt clearance strategy with international creditors will not be an easy feat to achieve as the Africa Development Bank Group (AfDB) and di...

The Ghanaian cedi has been awarded the ‘title’ of the continent’s worst performing currency in 2022. © Adobe Stock

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lack of transparency

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Ghana: Economic woes deepen over debt swap debacle, Eurobonds decline Ghana’s failure to meet a self-imposed deadline to restructure its bilateral debt by the end of February has led to a sharp decline in its Eurobonds, ...

© Nigerian President Muhammadu Buhari and Nigeria’s newly declared winner of 2023 presidential election, Bola Tinubu pose for photograph in Daura, Nigeria, March 1, 2023. Nigeria’s Presidency/Handout via REUTERS

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Just Can't Debt Enough

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Nigeria: Tinubu’s contested win signals further pressure on public finances Economists fear the policy settings communicated by Nigerian president-elect Bola Tinubu are likely to aggravate the country’s already strained public...

© Egypt’s Central Bank headquarters are seen in downtown Cairo, Egypt, March 22, 2022. REUTERS

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another devaluation?

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Egypt: Privatisation trudging as Gulf reluctant over unstable currency Egypt is struggling to get its privatisation programme off the ground, which may leave the North African nation with no options but to once again attr...

© View of South African utility Eskom’s electricity pylons during dawn as frequent power outages implemented by Eskom due to its aging coal-fired plants continue, in Johannesburg, South Africa, February 25, 2023. REUTERS

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Little hope

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South Africa: Economy dealt multiple blows as power crisis prevails Fears abound over South Africa’s economic downturn as Standard and Poor’s (S&P) has lowered its credit ratings to ‘stable’ and forecasted a growth rat...

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Trampling the grass

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IMF says Africa most at risk from US-China divorce When elephants fight, an old African proverb tells us, the grass gets trampled. Now the IMF has put a dollar figure on this ancient wisdom.

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