Egypt is to receive a second loan instalment worth $1.25 billion from the International Monetary fund Friday at the latest and it is under a three-year, $12 billion IMF loan programme agreed last November. The disbursements are tied to ambitious economic reforms such as subsidy cuts and tax hikes.
The IMF had said in May that there was a staff-level agreement to disburse the second installment based on Egypt’s reform progress but the fund’s executive board first had to meet to sign off on it.
The rich around the world are not holding back on spending on at least that priceless beauty, Diamond. Botswana’s state-owned Okavango Diamond Company (ODC) says sales rose 9 per cent to $309 million in the first half of the year as demand improved. The company sold 1.8 million carats of diamond in five auctions since January with volumes three per cent higher than the same period in 2016. The company which is in a joint venture with Anglo American Plc’s De Beer plans to have 10 tenders this year,
Opec’s compliance with its own oil supply cuts fell in June, the International Energy Agency says, as it suggested some cartel members had “opened the taps”. Global oil supply rose sharply by 720,000 barrels a day last month, a closely watched monthly report from the IEA said, as Nigeria, Libya and Saudi raised output, with the compliance with the OPEC deal dropping to 78 per cent. Nigeria and Libya are exempt from Opec’s deal due to unrest and disruptions in both countries.
Ghana is learning the hard lesson – a surge by almost a third in oil output this year may do little to ease the West African nation’s fiscal strains as crude prices are lower than what it budgeted, eroding the gains from extra production. This year’s average Brent crude price of $52 a barrel is below the $56 forecast used for Ghana’s budget, and this could complicate the plans to narrow the fiscal deficit. The world’s second-biggest cocoa producer plans to cut its fiscal deficit to 6.5 percent of gross domestic product this year as it seeks to raise investor confidence eroded by the announcement in January of a 7 billion-cedi ($1.6 billion) hole in the budget. Funding options are limited, with Ghana already relying on an almost $1 billion International Monetary Fund program to prop up its finances.
With an arsenal of near $5bn, Africa’s richest man, Aliko Dangote, hopes to disrupts Nigeria’s agriculture value chain. Dangote group plans to invest $3.8 billion in sugar and rice and $800 million in dairy production in the next three years as the company seeks to expand and deal with a shortage of dollars in its home market of Nigeria. The conglomerate will seek to increase its production of sugar to 1.5 million metric tons a year by 2020 from 100,000 tons now and is seeking to add 1 million tons of rice, says Edwin Devakumar, executive director at Dangote’s industries unit.
The company also plans to have 50,000 cattle producing 500 million liters of milk a year by 2019, he said.
A man who wants to do something will find a way, a man who doesn’t will find an excuse – Stephen Dolley
Most of us can read the writing on the wall; we just assume it is addressed to some one else – Ivern Ball