Africa Briefs

Ramaphosa assures central bank independenceSouth African president Cyril Ramaphosa pledged on Wednesday that his government would not interfere with the independence of the Reserve Bank, despite a proposal by the ruling party to broaden its focus to boost employment and economic growth."We do not seek to interfere with its independence," Ramaphosa told a news conference at the World Economic Forum in the Swiss ski resort of Davos.The central bank's mandate now focuses on price stability, but the African National Congress said in its 2019 election manifesto that monetary policy should also "take into account other objectives, such as employment creation and economic growth". – Nampa/ReutersZim vows bold economic turnaroundZimbabwe's finance minister painted an optimistic outlook for his country on Tuesday, despite protests over fuel prices that human rights groups say have left at least a dozen people dead.Mthuli Ncube told Reuters that in the next year he hoped to bring inflation under 10% from 42% now, find the money to cover debt payments of US$1.2 billion, and introduce a new currency.He also talked up a privatisation programme that has so far seen little real progress.“Zimbabwe is the best buy in Africa right now,” he said in an interview at the World Economic Forum in Davos.Zimbabwe owes US$7.4 billion in external debt and needs to pay US$1.2 billion of that in 2019, most of it to the World Bank and the African Development Bank. Ncube said he is speaking to G7 countries to find a way to make those payments. – Nampa/ReutersNigeria recommends 50% minimum wage riseNigeria's government is recommending a 50% rise in the minimum wage weeks before a presidential election where the cost of living has become a major issue. Labour minister Chris Ngige said the government would send a bill to parliament proposing an increase in the minimum monthly salary to 27 000 naira (US$88) from 18 000 now.Unions went on strike last year over the minimum wage, initially demanding a rise to 50 000 naira a month.President Muhammadu Buhari, whose bid for re-election on Feb. 16 faces a strong challenge from main opposition candidate Atiku Abubakar, said in January he would increase the minimum wage but had not specified by how much.A leading union, The Trade Union Congress of Nigeria, said it "rejects outrightly" Tuesday's announcement, saying 30 000 naira had been agreed in negotiations. – Nampa/ReutersKenya to restrict second-hand importsKenya plans to restrict imports of second-hand cars to newer vehicles in an effort to boost the domestic automotive sector by reducing the dominance of the used car market.The East African nation undermined what was a thriving vehicle assembly industry in the 1990s with policies that encouraged imports of cheap second-hand cars.The government now intends, by 2021, to restrict imports of cars to vehicles that are three years old or newer, according to a draft policy proposal seen by Reuters on Wednesday. Current regulations allow the importation of cars up to eight years old.Imported second-hand vehicles account for 85% of Kenyan car purchases, amounting to 86 626 vehicles in 2017 and gobbling up precious foreign exchange estimated at about 60 billion shillings (US$593 million) a year.The target is to gradually but systematically reduce and replace the over 80% market share of used vehicles and used parts with new products manufactured or assembled in Kenya, the government said in the policy draft. – Nampa/ReutersAFDB will lend Tunisia US$120 mlnThe African Development Bank will lend Tunisia US$120 million to support its budget as the government is seeking to raise funds at low cost, a Tunisian government official said.Tunisia also received a US$500 million loan from Saudi Arabia at a favourable interest rate, according to officials, raising the foreign currency reserve to the equivalent of 91 days of imports, official data showed on Wednesday.The European Union has approved a 305 million-euro (US$347 million) financial assistance package for Tunisia to help young people find jobs and boost local development, the bloc said on Wednesday.Another government official told Reuters that prime minister Youssef Chahed's government is seeking to mobilise its resources through soft loans from friendly countries to avoid the sale of bonds and the high cost of loans in the international market.The North Africa country needs around US$2.53 billion in external financing in 2019, officials told Reuters. – Nampa/ReutersMorocco's trade deficit rises 8%Morocco's trade deficit rose by 8% to 204 billion dirhams (US$21.36 billion) compared with a year earlier, the foreign exchange regulator said. Imports rose 9.3% to 478.7 billion Moroccan dirhams, outstripping exports of 274.2 billion dirhams, up 10.2%. The energy import bill surged 18.4% to 82.3 billion dirhams. Exports in the automotive sector totalled 60 billion dirhams, up 10.7% as the North African country is home to production plants of French carmakers Renault and PSA group.Foreign direct investments rose 28.6% to 33.5 billion dirhams. The deepening trade deficit was felt on Morocco's foreign exchange reserves, which dropped 5.2% year on year to 229 billion dirhams as of Jan. 9 - enough to cover five months of import needs - according to central bank data. – Nampa/Reuters

Africa Briefs

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Namibian Sun 2024-11-26

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Africa Briefs

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Namibian Sun 2024-11-26

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