The COVID-19 pandemic and the shock from the falling price of oil have put severe pressure on Angola since the country’s second review under the Extended Fund Facility (EFF) in December 2019.
Only months after the conclusion of the second review in December 2019, the COVID-19 pandemic reached Angola, ushering in economic and health crises. The decline in oil prices further strained the economy, which is heavily reliant on oil exports. The economic downturn and social distancing to contain the spread of the virus have been damaging, especially given the large informal sector.
A swift response to the crisis
The Angolan authorities adopted timely measures to tackle the challenges arising from the COVID-19 shock. Measures to protect public health included quarantine, social distancing, closing of borders with limited exceptions, closures of schools, restaurants, and public events, and limited transportation. The government recently approved a prudent supplementary budget for 2020 using a conservative oil reference price. It has also introduced a comprehensive set of fiscal and monetary measures to support economic activities.
On relief to help vulnerable people:
• Tax exemptions of value-added tax (VAT) and customs duties on goods imported under humanitarian aid and donations.
• VAT tax credit for imported capital goods and raw materials for producing essential consumption goods.
• Interest-free, deferred payment option for social security contributions.
• Regulation of prices for a list of medical goods.
On government spending:
• Freeze of 30 percent of purchases on nonessential goods and services.
• Reduction in the number of ministries from 28 to 21.
• Suspension of selected, nonessential capital expenditures.
• Decrease in travel and real estate investments.
• Additional liquidity support to banks and a liquidity line to buy government securities from nonfinancial corporations.
• A credit-stimulus program.
• Temporary suspension for debt service payments.
• Requirement for banks to provide credit to importers of essential goods.
A proactive external debt management
The government needs to safeguard its ability to continue to service its debt on schedule, even under the current trying circumstances. The government has therefore availed itself of the G20 Debt Service Suspension Initiative. They have also secured selected debt reprofiling operations with some of their large creditors.
Financial support from the IMF
On September 16, 2020, the IMF’s Executive Board approved the third review under the EFF and additional financial support to Angola to help mitigate the impact of the crises. Accordingly, the IMF has provided $1 billion to Angola, bringing its total expected financial support to about $4.5 billion under the three-year program. The authorities are strengthening their public financial management to improve accountability for the funds received from the IMF and debt relief from creditors.
The path to recovery
It is important for Angola to continue to stabilize the economy, control inflation, keep the reform momentum, and safeguard financial stability. It is also crucial to persevere with structural reforms, such as privatization, improvement in governance in state-owned enterprises, and strengthened legal frameworks. These reforms will help improve the business environment and pave the way for foreign direct investment and growth-enhancing economic diversification.
Oyo State Budgets N330M Monthly To Support Community Policing In LGAs
Oyo State Governor, Seye Makinde has said that the state has set aside a monthly budget of N330 million to be spent on security across the 33 local governments in the state.
The governor who disclosed this in Ibadan said each local government in the state is expected to spend N10 million to support the security of lives and property in their domain.
He said part of the measures was the instruction to local government chairmen to involve traditional rulers as well as other voluntary residents in policing their areas.
Each local government is to spend N10 million monthly on this security arrangement.
Makinde explained that the initiative amounts to spending N330 million in the 33 local government areas, besides other efforts the state government had put in place to tighten security.
“We said each local government should set up a security committee, which should include traditional rulers and voluntary people willing to police their areas.
“I encouraged them to budget N10 million to service the committee every month. For the entire state, that’s N330 million per month by all local governments, excluding what we are doing generally at the state level,” the governor told a group on a visit to him during the recent Muslim festival.
“On security, most of the data in the past months shows that things are now improving. The Igangan incident, some days ago, was only falsified by some people who were saying that Fulani herdsmen had invaded Igangan again. The truth is actually about the NCS and smugglers. They know each other.
“Customs officials were accused to have entered Igangan, which is not a border town. But we are working with Federal authorities and they have arrested most of them.
“The gun that was collected is still with us. I said I won’t release it until I get the attention of the Federal authorities.
“In the Constitution of Nigeria, Oyo State is a federating unit. We are not saying Federal agencies should not carry out their operations here. But they must tell us; they must inform us. They may not disclose the details of the operation to us, but we must know about it.
“If we had known about the operation, we would have pre-informed the security detail in the town and those who died could have been alive. The Amotekun Coordinator that died in Igboora would have still been alive today.
“How can you go operating in an unidentified vehicle in a town where the security tactics have been heightened? As they wanted to enter the town, they were confronted because we have heightened security in all of those places.
“So, we will keep appealing to them and to our people that false information won’t help anybody. Nobody will profit politically from the security issues we are faced with. It is our collective responsibility. The people will play their part and the government will play its own part,” Makinde said.
Security Operatives Arrest Sunday Igboho in Cotonou, Benin Republic
The security operatives in Cotonou, Benin Republic have arrested Yoruba freedom fighter, Sunday Adeyemo, popularly known as Sunday Igboho.
An anonymous source privy to the arrest disclosed on Tuesday morning.
According to the source, Sunday Igboho was arrested in Cotonou while trying to travel to Germany from the West African nation.
President Buhari-led administration is now working with the Benin government to repatriate him to Nigeria.
The source said, “Sunday Igboho has been arrested in Cotonou. He was arrested about an hour ago.
“He was supposed to travel to Germany through Cotonou this night. He wanted to leave Africa through Cotonou. He was arrested by security operatives in Cotonou.
“They are planning to bring him back to Nigeria.”
It would be recalled that the Department of State Services had declared Igboho wanted after its operatives carried out a bloody midnight raid on his residence in the Soka area of Ibadan, Oyo State.
DSS Public Relations Officer, Peter Afunnaya, had advised Igboho to turn himself in to the nearest security.
“Those cheering and eulogizing him may appeal to or advice him to do the needful,” Afunnaya said. “He should surrender himself to the appropriate authorities. He or anyone can never be above the law.”
Pelumi Olajengbesi, one of the lawyers representing Igboho and others arrested in his House, told SaharaReporters he had not confirmed the news of Igboho’s arrest in Cotonou.
“I will contact Yomi Aliu (SAN) to verify the news,” he said.
IOM Ethiopia Appeals for USD 40 Million to Assist Additional 1.6 Million People in Northern Ethiopia
Nearly two million people affected by the crisis in northern Ethiopia desperately need life-saving assistance, including water, medicine and shelter, the International Organization for Migration (IOM) said today as it issued an urgent appeal for USD 40 million to help internally displaced men, women and children, including newborn babies.
Since the outbreak of the conflict eight months ago in Ethiopia’s Tigray Regional State, millions of people are enduring unimaginable suffering, including forced displacement, hunger, death, and destruction of private and public property.
In Tigray, IOM has been providing support to more than half a million people, including displaced children, women, men, and vulnerable groups such as pregnant women and persons with disabilities. This includes shelter and provision of essential items such as food, water, clothing, medicine and supplies for babies, as well as sanitation and hygiene services.
IOM has also been supporting camp coordination and management efforts, providing mental health care to those in need, and producing Displacement Tracking Matrix (DTM) reports to shed light on the evolving situation.
Nearly USD 70 million (USD 69.3M) is needed to respond to the needs of internally displaced populations in northern Ethiopia but only USD 28.7 million has been received this year. IOM needs an extra USD 40.6 million for the remainder of 2021 to be able to continue and further expand its response to help the displaced.
“The nearly two million people displaced by this crisis continue to live in inhumane and undignified conditions and require critical and urgent support,” said Maureen Achieng, IOM Chief of Mission to Ethiopia and Representative to the African Union and UNECA. “IOM Director General António Vitorino said it before, and we say it again: we must act without delay to meet the needs of people in the region.”
The situation in Tigray remains volatile. In partnership and coordination with other UN agencies, IOM is committed to delivering life-saving humanitarian assistance, to continue reaching people in need. IOM is planning to significantly scale up response programming and increase the deployment of senior IOM staff in the region despite the severe shortage of funding.
IOM’s response is aligned with the Inter-Cluster Coordination Group’s (ICCG) – a cooperative effort among sectors and the Humanitarian Country Team to improve the national response – Northern Ethiopia Response Plan, which estimates that 5.2 million people are in dire need in the worst-case scenario of this escalating humanitarian crisis.
Technology4 weeks ago
Opera Becomes the World’s First Alternative Browser Optimized for Chromebooks
Government4 weeks ago
Justice Binta Nyako Grants FG Request, Remands Kanu in DSS Custody
Economy3 weeks ago
130 Countries Signs Commitment to Global Tax Rate, Nigeria Abstains
Naira3 weeks ago
Naira Exchange Rates Today, Monday, July 5, 2021
Business2 weeks ago
How to Redeem Gift Cards, Gift Card Rates in Nigeria
Dogecoin4 weeks ago
Dogecoin Released New Fee Structure Proposal
Business3 weeks ago
Jeff Bezos Steps Down as Amazon CEO- How Much Power Will He Give Up?
Finance2 weeks ago
African Development Fund Extends $83.6 Million in Grants to Boost Ethiopia-Djibouti Electricity Trade