Latest news with #structuralReforms
Zawya
30-07-2025
- Business
- Zawya
Germany's KFW Bank grants South Africa's $576mln for Just Energy Transition
South Africa has been granted a €500m loan for the implementation of the country's Just Energy Transition (JET) plan by the German Cooperation via KFW Development Bank (KFW). This loan is part of South Africa's third Development Policy Operation and participants included the World Bank, African Development Bank, Japan International Cooperation Agency, and the Organisation of the Petroleum Exporting Countries Fund. 'It supports structural reforms to enhance the efficiency, resilience and sustainability of the country's infrastructure services, with a specific focus on the energy sector and climate mitigation. 'KFW's financing forms part of the government's broader efforts to implement structural reforms that strengthen public institutions, crowd in private investment, and improve service delivery across priority sectors of the economy,' National Treasury said. This loan agreement builds on the two policy loans concluded in 2022 and 2023, and forms part of Germany's pledge at COP26 to support South Africa's Just Energy Transition Partnership (JETP). Germany's three policy loans, implemented by KFW, total €1.3bn and form part of a larger package of JETP projects supported by the German Government via loans, technical assistance and grants. 'The Minister of Finance, Enoch Godongwana, (has) highlighted the significance of South Africa's partnership with Germany and KFW that remains critical to South Africa's development agenda and marks a significant step towards strengthening South Africa's short- and medium-term energy security measures, promoting decarbonisation and enhancing the socio-economic benefits of the energy transition for disadvantaged communities, thereby enabling inclusive economic growth and fostering job creation. 'The minister also emphasised the need for further policy and institutional reforms in the energy sector to create an enabling environment for the investment required for a just energy transition,' National Treasury said. KFW's country director for South Africa, Cornelia Tittmann, said the loan seeks to support the government of South Africa's continued commitment to reforms in the energy sector, which give effect to South Africa's climate commitments and enable the private sector to participate, opening new avenues to strengthen economic cooperation between Germany and South Africa. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Bloomberg
02-07-2025
- Business
- Bloomberg
AfDB Cuts South Africa Growth Outlook by Half on Trade Concerns
South Africa must accelerate structural reforms to offset global challenges that include US President Donald Trump's trade war, the African Development Bank said as it cut the nation's economic forecast. It lowered its forecast for Africa's most-industrialized economy to a meager 0.8% this year from a previous estimate of 1.6%, the Abidjan-based lender said in an update to its Country Focus Report for South Africa.
Zawya
02-07-2025
- Business
- Zawya
IMF may merge reviews of Egypt's program, delay $1.2bln aid disbursement
Arab Finance: The International Monetary Fund (IMF) could merge its fifth and sixth reviews of Egypt's $8 billion support program, which may delay the disbursement of $1.2 billion by half a year, Reuters reported, citing three people familiar with the matter. The possible delay is attributed to Egypt's slow progress on structural reforms, which are the main guarantee of the facility, including the divestment of state assets. Reuters noted that a delay in the fifth review would result in the program being hindered until after the summer, with the next board meeting likely in December at the earliest. On June 29th, the Egyptian parliament approved raising value-added tax (VAT), which will increase taxes on construction services, crude oil, cigarette, and alcohol. A source said that this VAT hike may trigger thr IMF staff report. In March, the IMF completed its fourth review of Egypt's economic reform program under the Extended Fund Facility (EFF), unlocking access to $1.2 billion. An IMF delegation, led by Chief Mission Vladkova Hollar, visited Egypt during May and began the fifth review, but has yet to signal its approval. Holler affirmed that Egypt made substantial progress toward macroeconomic stability. On April 2nd, the Egyptian government announced it received the $1.2 billion fourth tranche from the IMF. Regarding Egypt's economic performance, the IMF, in its April's World Economic Outlook Report, raised its forecast for the country's economic growth to 3.8% for the current fiscal year (FY) 2024/2025, surpassing a previous estimate of 3.6%. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
02-07-2025
- Business
- Zawya
Approval of Egypt's IMF programme review faces possible delay, sources say
CAIRO: The IMF may merge its fifth and sixth reviews of Egypt's $8 billion support programme because of slow progress on structural reforms, possibly delaying a new disbursement by half a year, three people with knowledge of discussions said on Tuesday. The International Monetary Fund approved its fourth review of the programme in March, unlocking a disbursement of $1.2 billion. An IMF team arrived in Egypt in May to begin the fifth review but has yet to signal its approval, the sources said. The 46-month facility was first signed in March of 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38% in September 2023. The IMF has so far paid out about $3.5 billion under the fund, according to Reuters calculations. However, it has been displeased with Egypt's slow progress on structural reforms that are the centrepiece of the facility, including the divestment of state assets, one of the sources said. Egypt failed to reach half of its structural benchmarks in its last two reviews, the first source added. Financial reforms have progressed relatively smoothly. A finance ministry spokesperson had no immediate comment. The central bank did not immediately respond to a request for comment. A delay in the fifth review would result in the programme being stalled until after the summer, with the next board meeting likely in December at the earliest. The IMF has yet to publish a staff report from the fourth review. Egypt asked for a delay to give it time to release details of measures to widen the tax base, the first source said. On Sunday, parliament approved expanding value-added tax, which will mean higher taxes on construction and contracting services, crude oil, cigarettes and alcohol. That could trigger the release of the IMF staff report, the first source said. (Reporting by Patrick Werr; Editing by Aidan Lewis)
Reuters
01-07-2025
- Business
- Reuters
Approval of Egypt's IMF programme review faces possible delay, sources say
CAIRO, July 1 (Reuters) - The IMF may merge its fifth and sixth reviews of Egypt's $8 billion support programme because of slow progress on structural reforms, possibly delaying a new disbursement by half a year, three people with knowledge of discussions said on Tuesday. The International Monetary Fund approved its fourth review of the programme in March, unlocking a disbursement of $1.2 billion. An IMF team arrived in Egypt in May to begin the fifth review but has yet to signal its approval, the sources said. The 46-month facility was first signed in March of 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38% in September 2023. The IMF has so far paid out about $3.5 billion under the fund, according to Reuters calculations. However, it has been displeased with Egypt's slow progress on structural reforms that are the centrepiece of the facility, including the divestment of state assets, one of the sources said. Egypt failed to reach half of its structural benchmarks in its last two reviews, the first source added. Financial reforms have progressed relatively smoothly. A finance ministry spokesperson had no immediate comment. The central bank did not immediately respond to a request for comment. A delay in the fifth review would result in the programme being stalled until after the summer, with the next board meeting likely in December at the earliest. The IMF has yet to publish a staff report from the fourth review. Egypt asked for a delay to give it time to release details of measures to widen the tax base, the first source said. On Sunday, parliament approved expanding value-added tax, which will mean higher taxes on construction and contracting services, crude oil, cigarettes and alcohol. That could trigger the release of the IMF staff report, the first source said.
