Latest news with #Abebe
Yahoo
25-04-2025
- Business
- Yahoo
Sub-Saharan Africa must lift revenue to ride out global turbulence
By Karin Strohecker and Duncan Miriri WASHINGTON/NAIROBI (Reuters) -Sub-Saharan African economies should work to increase their domestic revenue collection to avoid having to take on debt amid "turbulent global conditions", International Monetary Fund Africa Director Abebe Aemro Selassie said. The region's economy is likely to expand by 3.8% this year, the Fund said in its World Economic Outlook report this week, marking a cut from its previous forecast of 4.2% due to the potential impact of the U.S. administration's stance on trade. "There is a period where maybe relying on debt financing is not the right way to do development," Abebe told Reuters, adding that policymakers have to also identify new sources of cheaper capital. Investors sold off risky assets after President Donald Trump announced sweeping tariffs on dozens of U.S. trading partners, pushing up the yields of most issuers in sub-Saharan Africa into double digits, a sign that such so-called frontier economies could struggle to access capital markets. "You have to look for internal resources to address the development and address social spending needs," Abebe said. "These policies that are to enhance resilience, there is a higher premium on those." The average debt-to-economic-output ratio in the region was steady last year at less than 60% of GDP, the IMF said, but some economies like Kenya have been struggling with high debt-servicing costs. Although the United States is not a major trading partner for many economies in the region, the knock-on effects from its approach to international trade are also piling pressure on the foreign exchange rates of economies, he said. "We have already seen oil prices decline... Countries like Nigeria and Angola are going to see a mark-down in economic activity, and they are some of the largest economies in sub-Saharan Africa," he said. The projected setback could interrupt a "hard fought economic recovery" from the global pandemic, a worldwide inflation spike and an interest rate surge that effectively locked many African economies out of foreign capital markets, the IMF said. Growth in the region, home to a wide range of economies, including fairly diversified ones like Tanzania and Senegal, reached 4% last year, surpassing the IMF's forecast of 3.6%, the Fund said. Last year's robust economic expansion in the region was accompanied by an improvement in macroeconomic imbalances, the IMF said, citing lower average inflation and stable debt levels. "We have seen quite a lot of resilience in the region," Abebe said, adding that 11 out of the 20 fastest-growing economies in the world will be in sub-Saharan Africa.
Reuters
25-04-2025
- Business
- Reuters
Sub-Saharan Africa must lift revenue to ride out global turbulence
WASHINGTON/NAIROBI, April 25 (Reuters) - Sub-Saharan African economies should work to increase their domestic revenue collection to avoid having to take on debt amid "turbulent global conditions", International Monetary Fund Africa Director Abebe Aemro Selassie said. The region's economy is likely to expand by 3.8% this year, the Fund said in its World Economic Outlook report this week, marking a cut from its previous forecast of 4.2% due to the potential impact of the U.S. administration's stance on trade. "There is a period where maybe relying on debt financing is not the right way to do development," Abebe told Reuters, adding that policymakers have to also identify new sources of cheaper capital. Investors sold off risky assets after President Donald Trump announced sweeping tariffs on dozens of U.S. trading partners, pushing up the yields of most issuers in sub-Saharan Africa into double digits, a sign that such so-called frontier economies could struggle to access capital markets. "You have to look for internal resources to address the development and address social spending needs," Abebe said. "These policies that are to enhance resilience, there is a higher premium on those." The average debt-to-economic-output ratio in the region was steady last year at less than 60% of GDP, the IMF said, but some economies like Kenya have been struggling with high debt-servicing costs. Although the United States is not a major trading partner for many economies in the region, the knock-on effects from its approach to international trade are also piling pressure on the foreign exchange rates of economies, he said. "We have already seen oil prices decline... Countries like Nigeria and Angola are going to see a mark-down in economic activity, and they are some of the largest economies in sub-Saharan Africa," he said. The projected setback could interrupt a "hard fought economic recovery" from the global pandemic, a worldwide inflation spike and an interest rate surge that effectively locked many African economies out of foreign capital markets, the IMF said. Growth in the region, home to a wide range of economies, including fairly diversified ones like Tanzania and Senegal, reached 4% last year, surpassing the IMF's forecast of 3.6%, the Fund said. Last year's robust economic expansion in the region was accompanied by an improvement in macroeconomic imbalances, the IMF said, citing lower average inflation and stable debt levels. "We have seen quite a lot of resilience in the region," Abebe said, adding that 11 out of the 20 fastest-growing economies in the world will be in sub-Saharan Africa.
Business Insider
23-04-2025
- Business
- Business Insider
Ethiopia set to become 4th African member of BRICS New Development Bank
Ethiopia has perfected plans to join the BRICS New Development Bank, making it the fourth African nation to become a member of the institution. Ethiopia plans to join the BRICS New Development Bank, becoming the fourth African nation to be a member Ethiopia has submitted its application for NDB membership and received political support from all BRICS members The NDB has three African member countries: South Africa, Egypt, and Algeria, with Ethiopia set to join soon This move highlights Ethiopia's growing role in international economic partnerships and highlights the BRICS Bank's commitment to expanding its influence across emerging markets, particularly in Africa. The move for Ethiopia's accession to the BRICS New Development Bank (NDB) was confirmed by the Ethiopian Ambassador to Brazil, Leulseged Tadese Abebe, during an interview published on the website of Brazil's BRICS Chairmanship, a partner of TV BRICS. Ambassador Abebe revealed that Ethiopia had already submitted its application for NDB membership and highlighted that joining the bank is a key priority for the country this year. He emphasized Ethiopia's full commitment to integrating with the BRICS mechanisms, stating, " One of the most important pillars in the BRICS family is the New Development Bank." The ambassador further noted that Ethiopia has already garnered political support from all BRICS members and expressed optimism about completing the accession process soon. Once a member, Ethiopia intends to focus on key priority sectors such as agriculture, energy, and industry, aiming to drive sustainable development in these critical areas. The addition of Ethiopia to the bank is expected to further strengthen its development initiatives on the continent, supporting critical infrastructure and sustainable projects in one of Africa's fastest-growing economies. The NDB membership in Africa The New Development Bank (NDB) has three African member countries - South Africa, Egypt, and Algeria - with Ethiopia set to join soon. These members reflect the bank's growing influence in supporting sustainable development in Africa. Key points about each country include: - South Africa (founding member - July 3, 2015): Participates in NDB operations, funds infrastructure projects, and promotes sustainable development. - Egypt (member since Feb 20, 2023: Leverages NDB funding for regional cooperation, energy, infrastructure, and trade projects. - Algeria (member since August 31, 2024): Brings expertise in sustainable energy development and is expected to benefit from NDB financing for infrastructure and industrial capacity expansion. - Ethiopia (set to join): Plans to focus NDB resources on agriculture, energy, and industry, strengthening the NDB's presence in the Horn of Africa. The NDB's expansion in Africa highlights the continent's growing role in global economic governance and its commitment to infrastructure, energy, and sustainable development projects.
Yahoo
12-04-2025
- Business
- Yahoo
Some Atlanta developers' construction projects could be impacted by new tariffs
New tariffs on construction materials are raising building costs, which could eventually slow down development in Georgia. One local developer told Channel 2′s Bryan Mims how this could affect projects down the road. Mike Abebe is one of the largest private landowners in Atlanta. He's preparing to develop 25 acres on the Beltline. Because of his project's timing, he said the new tariffs are not likely to affect him. 'Even if we started construction tomorrow - we'd be doing infrastructure work - something we don't need China to provide,' Abebe said. 'For those on the more predevelopment stage and those under construction - they will be impacted immediately.' But with other developments across Georgia, tariffs could put stress on the bottom line. 'For a lot of developers, the margins are so thin so for any movement where there's labor and product of course that's going to have impact so they have to renegotiate with the lenders, renegotiate with the equity providers,' Abebe said. When asked what his advice for other developers is, he said, 'What I suggest to everybody if you're in the concept stage, this is the time to entitle your property, start community emergent you don't have to dig ground to start cost building. Just do the leg work to move forward.' The price increases will take some time to work their way through the system, so it's unclear how quickly all of this could happen. [DOWNLOAD: Free WSB-TV News app for alerts as news breaks] TRENDING STORIES: Metro Atlanta murder suspects arrested hours away in coastal Georgia These Georgia billionaires are some of the richest people in the world, according to Forbes Shooting suspect arrested after being hit by car outside Magic City [SIGN UP: WSB-TV Daily Headlines Newsletter]
Yahoo
12-04-2025
- Business
- Yahoo
Developers warn that rising costs from Trump tariffs could slow building across Georgia
Atlanta continues to experience significant development and growth, with key projects like the Atlanta BeltLine and Centennial Yards transforming the metro Atlanta area. However, with the latest round of tariffs from the Trump administration driving up building costs, some developments could slow down. Mike Abebe, one of the largest private landowners in the city, is preparing to develop a 25-acre plot of land along the BeltLine. He told Channel 2's Brittany Kleinpeter that the tariffs shouldn't impact him—at least not yet. TRENDING STORIES: FBI arrests Lilburn man for making threats against President Trump, others in administration Victims, suspect identified in Walmart employee shootings that left 2 dead, 1 injured Delta passengers on 2 flights get to Atlanta 15 hours late after spending night stuck on tarmac 'Even if we started construction tomorrow, we'd be doing infrastructure work,' Abebe said. The land developer explains that because his BeltLine project is still in the pre-concept stage, changes in material costs won't affect him at this time. 'For those in the predevelopment stage or already under construction, they will be impacted immediately,' Abebe said. With other developments underway across the state—including a massive housing project in Waynesboro—Abebe said he understands the financial pressure tariffs can place on a developer. 'For a lot of developers, the margins are so thin. So, any fluctuation in labor or material costs is going to have an impact,' he said. 'They have to renegotiate with lenders and equity providers just to keep projects on track.' When the impacts could be seen are unclear as experts say it will take some time for the price changes to trickle down into the system. Sign in to access your portfolio
