Pandemic Pushes 55m Africans into Poverty; Ethiopia, Nigeria Top List: UN


Pandemic Pushes 55m Africans into Poverty; Ethiopia, Nigeria Top List: UN

The COVID-19 pandemic has pushed an estimated 55 million Africans into poverty, with Ethiopia and Nigeria the major sources for the "new poor" created over the past two years, according to the annual economic report on Africa published by the UN. The report reveals that African governments spent 2.2 billion dollars on fiscal stimulus in 2020, with overall fiscal spending doubling to 3.3pc of gross domestic product (GDP). It warns the continent's debt-to-GDP ratio will remain above the 60pc threshold the IMF considers sustainable. Three African countries – Ethiopia, Chad and Zambia – have applied for debt relief under the G-20 common framework. There has yet to be a concrete decision on Ethiopia's request. Data obtained from the World Bank reveals interest and principal payments on external debt of 2.2 billion dollars are due in 2022. The situation is more daunting in the face of a costly war in the north, which the federal government says has caused 40 billion Br in losses due to a "decline in economic activity." The war in Ukraine is exacerbating challenges, with global prices for wheat, petroleum, cooking oil, and fertiliser spiking to record highs since fighting broke out in Eastern Europe earlier this year.


Radar

Parliament Nods for Cabinet Appointments

Federal legislators have approved five cabinet-level positions last week with a member of Parliament (MP) voted against and two abstentions were counted. Gedion Timotheos (PhD) leads the charge as the new minister of Foreign Affairs, filling in Taye Asqeselassie's shoes, where he stayed briefly before becoming the country's president. With law degrees from Addis Abeba and Central European universities, Gedion was previously Attorney General and Minister of Justice. Joining him in the redev...


Radar

Abyssinia Group Eyes Expansion with IFC Funding

Abyssinia Group of Industries (AGI), a leading East African steel producer, is poised for significant expansion owing to a proposed investment from the International Finance Corporation (IFC) which is considering a financing package of up to 50 million dollars, including parallel loans in local currency. Headquartered in Kenya, AGI operates two steel plants in Ethiopia, six in Kenya, and has mining activities in Uganda. AGI currently produces 660,000 metric tons of steel annually and employs...


Radar

Fitch Acknowledges Easing Financial Pressures, Enhanced Macroeconomic Stability

Fitch Ratings has upgraded Ethiopia's Long-Term Local-Currency Issuer Default Rating (LTLC IDR) to 'CCC+' from 'CCC-', citing easing financing pressures, improved macroeconomic stability, and increased confidence that local-currency obligations will not be part of the ongoing debt restructuring. This positive development comes as the government implements key reforms and secures renewed concessional external financing. The ratings agency has taken note of the introduction of a market-based ex...


Back
WhatsApp
Telegram
Email