Latest news with #povertyreduction
Reuters
a day ago
- Business
- Reuters
Sri Lanka has 'no room for policy errors' in economic reforms, IMF says
WASHINGTON, June 16 (Reuters) - Sri Lanka has made substantial progress on an IMF-supported economic reform program, but more work is needed to reduce the Asian country's 24.5% poverty rate, tackle corruption and reduce domestic debt, the global lender's No. 2 official said Monday. In remarks prepared for a conference in Colombo, Gita Gopinath, first deputy managing director of the International Monetary Fund, said Sri Lanka's reforms had tested the country's social fabric, but also paved the way for a more resilient future. Sri Lanka, which plunged into financial crisis due to a record shortage of dollars three years ago, has recovered strongly since securing a four-year program from the global lender in March 2023. The country in April reached a staff-level agreement with the IMF on a fourth review of the bailout package, which will give it access to about $344 million in financing upon board approval. "Substantial progress has been made to restore macroeconomic stability and reduce hardships faced by people," Gopinath said, citing renewed availability of fuel, cooking gas and medicines, economic growth of 5% in 2024 and a sharp increase in tax revenues. "We must now turn our focus from crisis response to sustainable recovery. There is a lot that is still needed," she said, urging Sri Lankan authorities to keep working on governance reforms and reducing poverty and debt. Sri Lanka and other small open economies also now faced major risks given tariffs, geopolitical conflict and economic fragmentation, Gopinath said. "That is why there is no room for policy errors," she said, noting that about half of Sri Lanka's 16 past IMF programs had ended prematurely, with reform fatigue setting in and hard-won gains being reversed. "The country cannot afford to repeat that cycle," she said. "This time must be different! As President (Anura Kumara) Dissanayake has said, let us ensure this is the last IMF program Sri Lanka will need." Gopinath said the IMF agreed that was possible, if Sri Lanka stayed the course, continued to pursue inclusive reforms, increased transparency and ensured its policies were responsive and responsible. She said Sri Lanka's debt restructuring had resulted in improved methodologies for evaluating state-contingent features in debt contracts that link payments to a country's capacity to pay, as well as sparking certain IMF reforms. Challenges included facilitating collaboration among a range of official creditors, including France, Japan, India and China, and including domestic debt in the restructuring plans, albeit by focusing on lower interest rates and longer maturities instead of nominal debt reductions, she said.
Zawya
28-05-2025
- Business
- Zawya
African Economic Outlook 2025—Africa's short-term outlook resilient despite global economic and political headwinds
Africa's economy is projected to increase from 3.3 percent growth in 2024 to 3.9 percent in 2025, reaching 4 percent in 2026, despite mounting geopolitical uncertainties and trade tensions, the African Development Bank Group ( said Tuesday in its flagship 2025 African Economic Outlook report. Despite the prevailing domestic and external challenges Africa continues to demonstrate notable resilience. The report, titled 'Making Africa's Capital Work Better for Africa's Development,' was released during the Bank Group's 2025 Annual Meetings, taking place in Abidjan, Côte d'Ivoire. It demonstrates the continent's capacity to weather multiple shocks while identifying pathways to unlock a vast potential for transformation. Strong growth outlook despite global headwinds The report presents encouraging projections despite significant challenges: 21 African countries will achieve growth exceeding 5 percent in 2025, with four countries—Ethiopia, Niger, Rwanda, and Senegal—potentially reaching the critical 7 percent threshold required for poverty reduction and inclusive growth. Africa's projected growth rates will surpass the global average and outpace most other regions except emerging and developing Asia. Africa's continued resilience is built on effective domestic reforms and improved macroeconomic management. Mixed growth performance across Africa's regions Growth prospects vary significantly across regions: East Africa leads with a projected 5.9 percent growth in 2025-2026, driven by resilience in Ethiopia, Rwanda, and Tanzania. West Africa maintains solid 4.3 percent growth, driven by new oil and gas production coming onstream in Senegal and Niger. In the face of persistent headwinds, North Africa is expected to register 3.6 percent growth in 2025. In Central Africa, growth is projected to slow to 3.2% and Southern Africa will grow at only 2.2 percent, with its largest economy, South Africa, expected to achieve only 0.8 percent growth Significant challenges persist. Fifteen countries are experiencing double-digit inflation, while interest payments now consume 27.5 percent of government revenue across Africa, up from 19 percent in 2019. 'Africa must now face the challenge and look inwards to mobilizing the resources needed to finance its own development in the years ahead,' said Prof. Kevin Chika Urama, Chief Economist and Vice President of the African Development Bank Group, presenting the report's findings. Massive domestic resource potential remains untapped The AEO 2025 estimates that, with the right policies, Africa could mobilize an additional $1.43 trillion in domestic resources from tax and non-tax revenue sources through efficiency gains alone. Africa's extraordinary but underutilized resource base includes: Natural capital: Africa hosts 30 percent of global mineral reserves and could capture over 10 percent of the projected $16 trillion in revenues from key green minerals by 2030 Human capital: The continent's median age of 19 represents a demographic dividend that could add $47 billion to Africa's GDP through improved workforce participation Financial capital: Pension fund assets have grown to $1.1 trillion, while formal remittances could reach $500 billion by 2035 if transfer costs are reduced Business capita l: Full implementation of the African Continental Free Trade Area could increase exports by $560 billion and boost continental income by $450 billion by 2035 Urgent action needed to address resource leakages The report stresses that massive capital outflows are undermining the continent's development. Compared to $190.7 billion of financial inflows received in 2022, Africa lost approximately $587 billion from financial leakages. Of this, around $90 billion was lost to illicit financial flows, a further $275 billion siphoned away by multinational corporations shifting profits, and $148 billion lost to corruption. Vice President Urama said: "When Africa allocates its own capital (human, natural, fiscal, business and financial) effectively, global capital will follow Africa's capital to accelerate investments in productive sectors in Africa." Key policy recommendations "There can be no substitute to sound macroeconomic policy management, quality institutions and good governance, and rule of law." VP Urama said, emphasizing the vital need to bolster governance. The report also calls for comprehensive reforms across several critical areas. On fiscal revenue mobilization, it recommends enhancing tax administration through digitalization, broadening national tax bases, and strengthening social contracts with citizens to improve compliance. It advocates making natural capital accounting mandatory and enforcing domestic value retention through beneficiation requirements. The AEO also emphasizes the need to deepen financial markets by tapping institutional savings, developing local currency bond markets, and harmonizing regulatory frameworks to facilitate cross-border investment. The African Economic Outlook: The 2025 African Economic Outlook provides a comprehensive roadmap for unlocking Africa's transformation potential through better mobilization and utilization of domestic capital resources. Distributed by APO Group on behalf of African Development Bank Group (AfDB). Media Contact: Olufemi Terry Communication and External Relations Department Email: media@ About the African Development Bank Group: The African Development Bank Group is Africa's premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information:
The Guardian
18-05-2025
- Politics
- The Guardian
My gift to Labour: a chance for it to act on child poverty
Labour should welcome my 11th-hour intervention of adding child poverty reduction targets to its children's wellbeing and schools bill (Report, 12 May). The storm over Keir Starmer's 'island of strangers' speech lays bare the flaw in chasing Reform UK on its territory. For each Reform-tempted voter he's reclaimed, he's lost twice as many core supporters who are deeply disturbed by echoes of Enoch Powell. The fragile voter coalition that gave him power is being smashed into smaller and sharper shards. The prime minister must find a unifying issue, urgently. According to our recent Big Issue YouGov poll, 72% of the public want the government to do more to tackle poverty in the UK. It's a core issue for those jumping ship to Reform UK – 68% of those who say they support that party say poverty is a key area where this government is failing. As the child poverty taskforce mulls over how far to go with its 'ambitious' strategy, I want the government to see action against poverty as a political opportunity, as well as a moral necessity. I mean my amendment to the bill, due to be debated on Tuesday, as a gift – a way for it to seize the day and do something significant on child BirdHouse of Lords Have an opinion on anything you've read in the Guardian today? Please email us your letter and it will be considered for publication in our letters section.
Bloomberg
12-05-2025
- Business
- Bloomberg
World Bank Sees Nigeria's Revenues Surging If Import Bans Lifted
Lifting Nigeria's high tariffs and import bans could significantly increase tax revenue for Africa's most populous country, the World Bank said. The customs service could see revenue rise by 66% if they were scrapped, the Washington-based lender said in a biannual development report on the nation Monday. Such a move would also lower poverty rates by an estimated 2.6 percentage points, it said.
NHK
09-05-2025
- Business
- NHK
Bill Gates to donate most of his wealth by 2045 to save and improve lives
Microsoft co-founder Bill Gates says he will give away more than 200 billion dollars, or virtually all his wealth, to help vulnerable people over the next 20 years. In a statement released on Thursday, he said the exact amount will depend on the markets and inflation, but he expects the Gates Foundation will spend more than 200 billion dollars between now and 2045, when it will end its operations. He said the donations will be used to reduce deaths of mothers and children due to malnutrition, to prevent infectious diseases and to combat poverty. Gates said his foundation has given away more than 100 billion dollars during the past 25 years, but will double this over the next two decades. He noted that the United States, the United Kingdom, France and other countries around the world are cutting their aid budgets, and no philanthropic organization can make up the gulf in funding. In an interview with the Associated Press, Gates said: "The need, of course, is far greater than what we can do. But we'll be showing that we're doing the most we can." He added, "We'll be here all of those 20 years, but not thereafter."
