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AfDB to Support Quality Healthcare Infrastructure Across Africa

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Akinwumi Adesina - Investors King

The African Development Bank (AfDB) is to support African countries to have quality healthcare infrastructure and ensure the continent develops its pharmaceutical capacity as well as produce required vaccines within the continent

The bank also wants developed countries to extend the period of debt repayment and forgiveness in such a way that the period of deferment continues to be helpful to African countries.

President of the bank, Dr Akinwunmi Adesina, speaking on Africa’s Debt and Growth in an exclusive interview with CNN ahead of the launch of the bank’s African Economic Outlook 2021 today (Monday), said the bank projects a growth of 3.4 per cent in the year ahead, even as the continent faces a critical future unless there is a debt relief.

He pointed out that COVID-19-related spending has swollen many countries borrowing; and without more aid, 39 million Africans stand the risk of falling into extreme poverty this year. More than 30 million Africans are already in the extreme poverty bracket.

Adesina said Africa had never seen anything like this before. Growth last year was projected at -2.1 per cent. “That’s the lowest growth rate for 50 years in Africa. You don’t see the virus but the effect of it are just so mindboggling. The GDP of Africa went down by 175 billion dollars. Last year we had 30 million people fall into extreme poverty. This year, that trend continues with 39 million people going into extreme poverty, hunger and all that. It’s been just quite a lot.”

However, he said it was not all negative. “We projected that Africa will grow back. We projected 3.4 per cent back this year; but all that is conditional on two things: Access to vaccines and the issue of debts.

The AfDB President noted that the issue of vaccine was a big problem. You know so far 40.6 million vaccines have been delivered in Africa and people can’t even get a shot in the arm. That 40.6 million is only one per cent of what we need; talk less of having 60 per cent of herd immunity. So we are way off the mark on that.”

He emphasised the importance of Africa to have access to the vaccines and the need to have vaccine solidarity, pointing out that although those concerned are doing a great job, “the amounts are still in miniscule as far as we are concerned.

We need to actually have global solidarity on this; but beyond that, there must also have vaccine justice, making sure that everybody has the vaccine.”

Adesina cautioned that “If we deal with this pandemic in one part of the world and don’t deal with other parts, we are going back to square one. So, absolutely we must make sure that we ramp up access to vaccine. Africa needs it in quantity, it needs it on time and it needs it on an affordable price.”

On how long it would take to get herd immunity across Africa, Adesina said “the faster we get the vaccine, the better. You know, I just told you we got only one percent right now in terms of people getting the jabs in their arms; and so to get a heard immunity, it would be at 60 per cent, so you are looking at, at least 840 million doses.

“I don’t see that happening in another year of two because at the slow pace of producing the vaccine and getting them out, it’s going to be very difficult. I’m quite concerned about that because the longer it takes for Africans to get vaccinated; you know Europe says you can’t travel if you do not have vaccine passports, so people are going to think that Africa is going to be the last to get access to vaccine. I don’t want that to happen.

“For us as AfDB, we are looking beyond the current situation. We are looking at medium and also long term. I can’t accept that 1.4 billion people have to be running from pillar to post looking for vaccines. We at AfDB have therefore decided that we are going to support Africa to have quality healthcare infrastructure and also make sure that it develops its own pharmaceutical capacity and also producing vaccines in Africa; not running from pillar to post.”

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Economy

Nigeria’s Plan to Review Oil Companies’ Gas Flaring Strategies

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Oil

Nigeria is ramping up its efforts to address environmental concerns in the oil and gas sector with a comprehensive plan to review gas flaring strategies of international and indigenous oil companies.

The Minister of State for Environment, Dr. Iziaq Salako, announced this initiative during a national stakeholders engagement meeting on methane mitigation and reduction held in Abuja, Investors King reports.

Gas flaring, a common practice in the oil industry, releases methane—a potent greenhouse gas—into the atmosphere, contributing to climate change and posing health risks to communities near oil facilities.

Nigeria aims to end routine gas flaring by 2030, aligning with global climate goals and commitments.

Dr. Salako explained the importance of reducing methane emissions and highlighted the detrimental effects on public health, food security, and economic development.

He outlined practical steps being taken to tackle methane emissions, including the development of methane guidelines and the engagement of government institutions.

The ministry, through the National Oil Spill Detection and Response Agency, will conduct periodic reviews of oil companies’ plans to ensure compliance with the gas flaring deadline.

Deloitte management consultants will assist in conducting comprehensive forensic audits to scrutinize the legitimacy of forward-contracted transactions.

President Bola Tinubu’s commitment to environmental sustainability underscores the government’s dedication to addressing climate change and fulfilling its multilateral environmental agreements.

The engagement event served as a platform for stakeholders to discuss methane mitigation strategies, existing policies, and implementation challenges.

Collaboration and dialogue among diverse sectors are crucial in charting a unified course towards sustainable methane reduction in Nigeria’s oil and gas industry.

As the country navigates its environmental agenda, ensuring accountability and transparency in gas flaring practices remains paramount for achieving a greener and healthier future.

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Economy

Interest Rate Jumps to 24.75% as CBN Takes Aggressive Stance Against Inflation

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Dr. Olayemi Michael Cardoso

The Central Bank of Nigeria (CBN) has announced a significant increase in the monetary policy rate, known as the interest rate, to 24.75%.

This move disclosed by CBN Governor Olayemi Cardoso during the 294th Meeting of the Monetary Policy Committee press briefing in Abuja, represents a bold step by the apex bank to address the mounting inflationary pressures faced by the country.

With inflation soaring to 31.70% in February, the CBN aims to moderate this upward trend by tightening its monetary policy stance.

This decision follows the previous hike in the interest rate to 22.75% in February, showcasing the CBN’s commitment to combatting inflationary forces.

While the bank opted to maintain the Cash Reserve Ratio at 45%, the significant increase in the interest rate underscores the urgency of the situation and the need for decisive action.

Governor Cardoso emphasized that these measures are essential to stabilize the economy and safeguard the purchasing power of the Nigerian currency.

The 294th MPC marks the second meeting under Governor Cardoso’s leadership, indicating a proactive approach to addressing economic challenges.

The next MPC meeting is scheduled for May 20th and 21st, 2024, highlighting the ongoing commitment of the CBN to navigate Nigeria’s economic landscape amidst inflationary pressures.

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Economy

Nigeria Braces for 10th Consecutive Interest Rate Hike by Central Bank

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Central Bank of Nigeria (CBN)

As Nigeria grapples with persistently high inflation, the Central Bank of Nigeria (CBN) is gearing up to implement its tenth consecutive interest rate hike in a bid to curb the soaring prices and attract investment.

Analysts surveyed by Bloomberg are anticipating a substantial 125 basis-point increase in the key rate to 24%, marking one of the most significant adjustments in the current tightening cycle.

The decision, expected to be announced by Governor Olayemi Cardoso on Tuesday at 2 p.m. in Abuja, comes on the heels of inflation accelerating to 31.7% in February, far surpassing the central bank’s target range of 9%.

This surge has been primarily attributed to the sharp depreciation of the naira, prompting authorities to devalue the currency twice since June to narrow the gap with the unofficial market rate and encourage investor confidence.

While these measures have seen the naira strengthen in recent days and bolstered investment inflows, including a fourfold increase in overseas remittances and significant foreign investor portfolio asset purchases, there remains a palpable need for more decisive action.

Giulia Pellegrini, a senior portfolio manager at Allianz Global Investors, emphasized the necessity for the CBN to intensify its tightening efforts to regain foreign investors’ confidence in the local bond market.

While acknowledging the positive strides made by the central bank, Pellegrini stressed the importance of a more assertive approach to prevent the diversion of investor attention to other frontier markets.

As the Nigerian economy navigates through these challenging times, the impending interest rate hike signals the CBN’s determination to address inflation head-on and foster a more stable economic environment.

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