Latest news with #AjayBanga
Bloomberg
2 days ago
- Business
- Bloomberg
Mozambique's $6.4 Billion Hydropower Plan to Get World Bank Funding
Mozambique won World Bank backing for its plan to build Southern Africa's biggest hydropower plant in half a century. The lender plans to provide debt and equity funding as well as risk guarantees and insurance for the $5 billion Mphanda Nkuwa plant on the Zambezi river and an associated $1.4 billion power transmission project, World Bank President Ajay Banga said in an interview in Mozambique.
Newsweek
3 days ago
- Business
- Newsweek
World's Largest Power Station Could Provide Energy for Half of US Homes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. The Grand Inga Hydropower Project is moving forward after years of delays in a bid to solve southern Africa's electricity and water scarcity. Delivery of the project, which would be the largest power station in the world if completed, was accelerated after officials convened in Zimbabwe on July 3. Newsweek contacted the organization responsible for the delivery, the Southern African Development Community (SADC), for more information on the progress via email. Why It Matters The Grand Inga Hydropower Project, with a potential capacity of up to 70 gigawatts, is designed as the centerpiece of Africa's Mission 300 initiative, which seeks to connect 300 million Africans to clean energy by 2030. The average household in the U.S. uses just under 11,000 kilowatt-hours a year, meaning that if Grand Inga reaches its projected scale, it could generate enough electricity to power nearly half of all homes in the U.S., though it will be used solely for homes in Africa. What To Know The Grand Inga Dam in the Democratic Republic of Congo (DRC) would be a series of seven hydroelectric power stations at Inga Falls in the Congo River. SADC ministers responsible for energy and water agreed to push forward with the Grand Inga Hydropower Plan and the Congo River Water Transfer Concept at a meeting in Harare, Zimbabwe, on July 3. On June 3, the World Bank Board of Executive Directors approved a $250 million creditas the first phase of a previously announced $1 billion long-term commitment to support preparation and local development efforts for Inga 3, DRC's largest power project to date. The Inga electricity production site along the Congo River on December 16, 2013. The Inga electricity production site along the Congo River on December 16, 2013. Getty Images Constructed in the 1970s and 1980s, the Inga I and II provided a foundation, yet both function at about 80 percent capacity. Grand Inga, which would be the third structure at the site, has attracted multiple rounds of international interest, but progress has repeatedly stalled because of high costs, governance concerns and the withdrawal of major partners, such as China's state-owned Three Gorges Corporation. The projected $80 billion cost of completing the Grand Inga plan remains a huge barrier for the DRC, which is one of the world's poorest countries. South Africa, Nigeria, Guinea and Angola have expressed formal interest in purchasing power from Grand Inga, tying the project to transnational energy security. The Grand Inga initiative is part of the Mission 300 program, which aims to supply electricity to 300 million Africans by 2030. World Bank President Ajay Banga called the wider project "a crucial component" for economic growth and development across the continent and predicted that it could draw as much as $85 billion in private investment. What People Are Saying Bob Mabiala, head of the ADPI-DRC, told the World Bank on June 3: "The electricity generation potential at the Inga site is one of the largest in the world. The development of Inga 3's hydropower will be transformative for DRC. By increasing access to clean, renewable, and affordable energy for Congolese households and industries, it will serve as a motor for inclusive growth and jobs." Albert Zeufack, World Bank division director, in a press release on June 3: "By supporting DRC's vision for Inga through this program and complementary investments in governance, education, and infrastructure, the World Bank Group, together with partners, can significantly contribute to converting DRC's natural resources into economic growth, jobs, and human development for the Congolese people." What Happens Next SADC ministers are expected to present progress updates on the Grand Inga and Congo River Water Transfer initiatives at the next SADC Council of Ministers meeting in Madagascar, scheduled for August.
Zawya
6 days ago
- Business
- Zawya
Mobile-phone technology powers saving surge in developing economies
WASHINGTON: More adults than ever in low- and middle-income countries now have bank or other financial accounts, leading to a rise in formal saving, according to the World Bank Group's Global Findex 2025 report. This momentum in financial inclusion is creating new economic opportunities. Mobile-phone technology played a key role in the surge, with 10 percent of adults in developing economies using a mobile-money account to save—a 5-percentage point increase from 2021. In 2024, 40 percent of adults in developing economies saved in a financial account in 2024—a 16-percentage-point increase since 2021 and the fastest rise in more than a decade. Higher personal saving—through banks or other formal institutions—fuels national financial systems, making more funds available for investment, innovation, and economic growth. In Sub-Saharan Africa, formal savings increased by 12-percentage points to 35 percent of adults. World Bank Group President Ajay Banga said, 'Financial inclusion has the potential to improve lives and transform entire economies. Digital finance can convert this potential into reality, but several ingredients need to be in place. At the World Bank Group, we're working on all of them. We're helping countries get their people access to new or improved digital IDs. We're constructing social protection programs with digital cash-transfer systems that deliver resources directly to those in need. We're modernizing payment systems and helping to remove regulatory roadblocks—so that people and businesses have the financing they need to innovate and create jobs.' Bill Gates, Chair of the Gates Foundation, one of the supporters of the Global Findex, added, 'More people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind. This is real progress. The case for investing in inclusive financial systems, digital public infrastructure, and connectivity is clear—it's a proven path to unlocking opportunity for everyone.' The Global Findex is the definitive source of data on global access to financial services—from payments to saving and borrowing. It highlights a major milestone in financial inclusion: nearly 80 percent of adults worldwide now have a financial account, up from 50 percent in 2011. But 1.3 billion adults still lack access to financial services. Mobile phones could help close this gap: about 900 million adults without financial accounts have a mobile phone, including 530 million with smartphones. Meanwhile, in the Middle East and North Africa, account ownership rose to 53 percent from 45 percent in 2021. In 2024, 17 percent of adults save formally, up from 11 percent in 2021.
Al-Ahram Weekly
15-07-2025
- Business
- Al-Ahram Weekly
Mobile tech fueled financial inclusion boom in developing economies in 2024: WB's Global Findex 2025 - Tech
Developing countries are experiencing an unprecedented rise in financial inclusion, with more adults than ever now owning a bank or mobile-money account, according to the World Bank Group's newly released Global Findex 2025 report. The momentum is reshaping personal finance in low- and middle-income economies, driving formal savings and unlocking new opportunities for inclusive economic growth. The Global Findex 2025 provides a comprehensive look at how financial services—especially mobile and digital—are shaping the future of inclusive development. In 2024, 40 percent of adults in developing economies reported saving in a financial account—a 16 percent increase from 2021 and the fastest progress recorded in more than a decade. In Sub-Saharan Africa, the share of adults saving formally jumped by 12 percentage points to 35 percent, reflecting a significant shift toward more structured financial behaviours. Mobile phone technology has played a key role in this leap. Ten percent of adults in developing countries now use mobile money accounts to save—double the 2021 figure. According to the report, this surge in digital financial inclusion is transforming how people manage money and enabling governments to expand access to credit, improve welfare delivery, and support long-term investment. 'Financial inclusion has the potential to improve lives and transform entire economies. Digital finance can convert this potential into reality, but several ingredients need to be in place. At the World Bank Group, we're helping countries strengthen digital IDs, build cash-transfer programs, modernize payment systems, and remove regulatory roadblocks,' said World Bank Group President Ajay Banga. The report also noted that global account ownership had reached nearly 80 percent—up from just 50 percent in 2011. Yet, 1.3 billion adults remain unbanked. Of those, almost 900 million own a mobile phone, including 530 million with smartphones—highlighting the untapped potential for further inclusion. 'More people than ever have the financial tools to invest in their futures and build economic resilience, including women and others previously left behind. This is real progress,' said Bill Gates, Chair of the Gates Foundation, which supports the Global Findex. The gender gap is also narrowing. In low- and middle-income economies, women's account ownership nearly doubled—from 37 percent in 2011 to 73 percent in 2024—driven by mobile financial services and digital wage and welfare transfers. However, the report warned that rising digital engagement brings new risks. While 86 percent of adults globally own a mobile phone (68 percent of whom use smartphones), only half of adults in developing economies use a password to protect their devices, leaving them vulnerable to financial fraud and data theft. Digital payments are proliferating. In 2024, 42 percent of adults in developing countries made an in-store or online merchant payment via mobile phone or card, up from 35 percent in 2021. More governments and employers are now channelling payments directly into accounts, a shift that reduces leakages and improves transparency. The report also includes regional highlights. In East Asia and the Pacific, 86 percent of adults own smartphones, and 83 percent have account access—the highest digital connectivity worldwide. In South Asia, account ownership is largely driven by India, where 90 percent of adults are financially included. Sub-Saharan Africa leads globally in mobile money usage, with account ownership rising from 49 percent in 2021 to 58 percent in 2024. In the Middle East and North Africa, account ownership grew from 45 percent to 53 percent, while formal saving rose from 11 to 17 percent. In Latin America and the Caribbean, over half of account holders use them digitally. Europe and Central Asia lead developing regions in internet use and mobile penetration. In Egypt, 74.8 percent of eligible citizens aged 15 and above had active financial accounts by the end of 2024, according to the Central Bank of Egypt (CBE). That figure translates to around 52 million Egyptians—out of an eligible population of 69.6 million—managing their finances through formal channels, including banks, Egypt Post, mobile wallets, and prepaid cards. The CBE attributed this progress to ongoing coordination with strategic partners across the financial ecosystem—including commercial banks, government ministries, and regulatory bodies. Their collective efforts have focused on advancing economic inclusion, particularly for women, youth with disabilities, and entrepreneurs. Follow us on: Facebook Instagram Whatsapp Short link:
IOL News
06-07-2025
- Business
- IOL News
SA's Debt Crisis: A Crippling Embrace of the World Bank
(From left) President of World Bank, Mr Ajay Banga, Brazil President Lula da Silva, India Prime Minister Narendra Modi, President Cyril Ramaphosa and US President Joe Biden on the margins of the G20 Leaders' Summit held at the Bharat Mandapam International Exhibition Convention Centre in New Delhi, India on September 9, 2023. Image: GCIS Zamikhaya Maseti On June 24, 2025, the National Treasury released an official statement: 'South Africa and the World Bank sign USD 1.5 billion loan agreement to support infrastructure modernisation and development.' According to Treasury, the loan will 'unlock key infrastructure bottlenecks,' particularly in the energy and freight transport sectors. The financing terms are said to be generous: a 16-year maturity, a three-year grace period, and an interest rate benchmarked at the Secured Overnight Financing Rate (SOFR) + 1.49%. In simple Development Finance terms, this interest margin suggests that the loan carries relatively favourable conditions compared to commercial borrowing. The World Bank technocrats would have us believe that this Development Policy Loan (DPL) is both progressive and developmental. But behind this clinical language of policy and project finance lies a deeper crisis, a State slowly surrendering its developmental autonomy in exchange for liquidity. In 2022, South Africa was granted a US$750 million COVID-19 relief loan, drawn from the same DPL mechanism. It was intended to stabilise the health system and support social protection. But that loan was scavenged shamelessly and systematically by the compradorial bourgeoisie and economic vultures. They tore through it like hyenas around a carcass. Who can forget, during the great looting spree, how overnight, car guards, taxi owners, tavern tycoons, traditional leaders, and healers became registered 'suppliers' of the Personal Protective Equipment (PPEs)? Most of the PPEs were of dubious quality, grossly overpriced, and delivered late, if at all, while the dying masses gasped for breath in overcrowded, under-equipped COVID-19 wards. Those who survived the pandemic awoke in a country where the crisis had been monetised, and the hospital became a feeding trough for a corrupt elite dressed in designer ethics. Yes, another World Bank loan. Another embrace of the very institution that generations of African Political Economists from Walter Rodney to Samir Amin warned us would never be a partner in liberation. The intellectual bloodlines of our radical thinkers have long declared: the Bretton Woods institutions are not development partners; they are enforcers of dependency. Walter Rodney, in How Europe Underdeveloped Africa, did not write in polite ambiguity. He was precise and surgical. Underdevelopment, he argued, was not a historical accident nor a technical gap, but a deliberate act imposed through imperial finance, colonial infrastructure, and economic coercion. Today, that analysis breathes again. South Africa, a constitutional democracy, a supposed developmental State, is now borrowing from the very institution that has for decades rehearsed economic suffocation across the continent: Ghana, Zambia, Kenya. We are told this loan will modernise transport corridors, reform Eskom, and support a 'green economy transition.' But herein lies the enduring warning of African Political Economy scholars of the 1960s and 70s: World Bank conditionalities were never neutral technocratic tools. They were ideological weapons designed to discipline post-colonial states and re-inscribe Western hegemony in economic terms. In the first decade of economic development and independence (1960–1970), newly independent nations like Ghana and Tanzania pursued bold paths of import substitution, state-led industrialisation, and social welfare. The World Bank responded by pressuring them to liberalise trade, dismantle subsidies, and invite foreign capital. When they resisted, funding was frozen. Sovereignty was punished. In the second decade of economic development and independence (1970–1980), as oil shocks and collapsing commodity prices crippled African economies, the World Bank returned not with solidarity, but with Structural Adjustment Programmes (SAPs): austerity masquerading as reform. Zambia was forced to privatise its mines, slash public spending, and devalue its currency. These were not technical corrections. They were ideological assaults driven by a neoliberal agenda to open Africa's veins to global capital. Development was delayed. Poverty was institutionalised. Today, South Africa, which still boasts of its economic sophistication, appears to have forgotten these lessons. Our gross government debt has now ballooned to R5.2 trillion, more than 74% of GDP, with R385 billion spent annually just to service that debt. This is not fiscal management, this is economic haemorrhaging. And we have yet to account for the hidden costs of this new loan: procurement dependency, policy capture, and technocratic drift. At the centre of this crisis lies the crumbling foundation of our public health system. For decades, it leaned heavily on foreign aid, especially from USAID, which supported HIV, TB, and maternal health programmes. But now, under Donald Trump's second term with its evangelical, nationalist, anti-globalist turn, USAID funding has been pulled. The consequences are immediate and brutal: clinics without ARVs, retrenched health workers, and rural hospitals collapsing. The system is already disintegrating. And into these vacuum steps, the World Bank not with a health rescue package, but with a spreadsheet of infrastructure loans and governance reforms. So, we must ask, again: what exactly is this new loan for? What does a 'green transition' mean when rural clinics can't even keep the lights on? Will Eskom's restructured grid serve the poor, or simply power private extraction? Why has there been no public debate, no parliamentary interrogation, no provincial consultation? Is South Africa bankrupt? Not yet, in the narrow technical sense. But ideologically, we are bankrupt of imagination. Development has been outsourced to multilateral lenders with no stake in our sovereignty. The borrowing continues, but each loan chips away at our autonomy, our dignity, our democratic will. We must re-read Walter Rodney. Revisit Samir Amin. Reclaim the dreams of Kwame Nkrumah, Samora Machel, Steve Biko, and Robert Sobukwe. Maybe we must begin to learn from Captain Ibrahim Traoré of Burkina Faso, who is sending the imperialists packing.
