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issue 599 | 22 Jun 2025

World

FDI flows to developing economies drop to lowest level since 2005

Flows of foreign direct investment (FDI) into developing economies – a key propellant of economic growth and higher living standards – have dwindled to the lowest level since 2005 amid rising trade and investment barriers, new research from the World Bank shows. These barriers pose a significant threat to global efforts to mobilise financing for development. In 2023, the latest year for which data are available, developing economies received just USD435-billion in FDI – the lowest level since 2005. That coincides with a global trend in which FDI flows into advanced economies have also slowed to a trickle: high-income economies received just USD336-billion in 2023, the lowest level since 1996. As a share of their GDP, FDI inflows to developing economies in 2023 were just 2.3%, about half the number during the peak year of 2008. “What [we are] seeing is a result of public policy,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President. “[It is] not a coincidence that FDI is plumbing new lows at the same time that public debt is reaching record highs. Private investment will now have to power economic growth, and FDI happens to be one of the most productive forms of private investment. Yet, in recent years governments have been busy erecting barriers to investment and trade when they should be deliberately taking them down. They will have to ditch that bad habit.”

Source: World Bank

Africa

AfDB champions Mission 300, launches Electricity Regulatory Index at 2025 Africa Energy Forum

The African Development Bank (AfDB) Group leveraged its presence at the 27th African Energy Forum (AEF 2025) to spotlight its strategic energy access initiatives, particularly Mission 300 – a bold campaign launched with the World Bank to connect 300 million Africans to electricity by 2030. An article dated 18 June 2025, indicated that the bank was also expected to launch its flagship Electricity Regulatory Index 2024 Report during the forum, which took place in Cape Town, South Africa from 17 to 20 June 2025. Bringing together governments, utilities, private sector actors, regulators, and development partners, the event provided a critical platform to advance Africa’s energy transformation agenda. The bank has committed to delivering 50 million of Mission 300’s ambitious target of 300 million new connections, working closely with countries and partners to align investment and policy reforms. The initiative gained traction in January 2025 at the Africa Energy Summit in Dar es Salaam, when 12 countries – as a first batch – unveiled their National Energy Compacts, outlining concrete policy actions and investment plans to fast-track electrification. This was backed by the Dar es Salaam Declaration on Energy, which calls for coordinated action on financing, reforms, and implementation. 

Source: AfDB

Africa

Africa loses USD120-billion to graft

Africa loses up to USD120-billion each year to corruption, a crisis that continues to undermine the continent’s economic independence and development ambitions. According to the African Union Advisory Board Against Corruption (AUABC), these losses are particularly devastating given that a large portion of the funds lost to corruption are borrowed from international lenders to support development and stabilise fragile economies. AUABC Vice-Chairperson Yvonne Mutepuka said: “The irony is painful, because we borrow heavily to finance development, only for that money to be lost through corruption. This vicious cycle keeps African nations dependent and underdeveloped.” Despite ongoing anti-corruption campaigns in African countries, Mutepuka noted that the challenge remains entrenched, requiring renewed commitment, stronger institutions and political will. She was addressing the AUABC 49th Ordinary Session in Arusha recently. The session also marked the swearing-in of a new board. Her remarks were echoed by findings from the United Nations Office on Drugs and Crime, which show that corruption is the leading obstacle to Africa’s economic and social development, consuming nearly 25% of the continent’s GDP annually.

Source: The EastAfrican

Africa

An overview of ESG fraud risks in the African mining sector

Environmental, Social and Governance (ESG) considerations have assumed a central role within the global mining sector, and nowhere is the emphasis on credible ESG reporting more pronounced than in African jurisdictions, where unique regulatory frameworks as well as complex socio-political environments heighten the risk of fraud. Companies operating in Africa face increasing scrutiny from governmental agencies, investors, and the local communities. The interplay of resource-rich landscapes, evolving local regulations, and persistent challenges such as corruption and opaque governance structures all work together to create distinct ESG fraud risks. If such risk is not effectively managed, it may expose corporate actors to significant legal liability, reputational damage, and sanctions.

Source: ENS 

Africa

US considers adding more African countries to travel ban

If implemented, the new measures would mean nearly 40 African countries face bans or some form of travel restrictions to the United States (US). An internal State Department cable cites reasons such as unreliable identity documents, passport security and the refusal or unwillingness by some countries to receive deported nationals, Reuters reported recently. Other grounds listed in the cable are terrorism, involvement in anti-semitic and anti-American activity. Over all, the document names 12 grounds to threaten travel restrictions against 36 countries in total. The list includes major US partners in Africa such as Kenya, Angola, Côte d'Ivoire, Egypt, Ethiopia, and Nigeria. The others are Benin, Burkina Faso, Cabo Verde, Cameroon, Democratic Republic of the Congo, Djibouti, Gabon, the Gambia, Ghana, Liberia, Malawi, and Mauritania. Niger, São Tomé and Príncipe, Senegal, South Sudan, Tanzania, Uganda, Zambia, and Zimbabwe also appear in the cable. The affected countries have 60 days within which to address Washington’s concerns lest they face partial or full travel bans. Recently, the US banned travel from Chad, Equatorial Guinea, Eritrea, Libya, Republic of the Congo, Somalia, and Sudan. It also placed heightened restrictions on travel from Burundi, Sierra Leone, and Togo. 

Source: Africanews

Central Africa

New World Bank report: Reforms needed to boost growth, create jobs, and reduce poverty in the CEMAC region

The Central African Economic and Monetary Community (CEMAC) region experienced stronger growth in 2024, growing by 3.0%, up from 2.0% in 2023. However, as highlighted by the 8th CEMAC Economic Barometer, growth remains modest and strongly dependent on oil and other commodities. These sectors do not create sufficient jobs for the region’s fast-growing population, leaving many youths unemployed. The semi-annual report discusses the recent economic situation in the CEMAC region and presents a brief analysis for each country. It shows that, in 2024, the region’s reserves, fiscal position, and trade balance deteriorated due to lower oil prices, highlighting CEMAC’s high exposure to volatile hydrocarbon markets, as oil makes up over two-thirds of total goods exported. Inflationary pressures continued to gradually abate, but high unemployment and lack of growth and economic opportunities are still causing poverty to rise. A third of CEMAC’s population is estimated to live in extreme poverty by 2024, translating to about 22 million people living with less than USD2.15 per day (in 2017 purchasing power parity). As highlighted in the report, regional growth is projected to remain slow at 2.9% in 2025-2027. 

Source: World Bank

Southern Africa

SADC to convene the 8th annual Industrialisation Week in Antananarivo, Madagascar

The Secretariat of the Southern African Development Community (SADC), in collaboration with the Government of Madagascar, the Syndicat des Industries Madagascar, and the SADC Business Council, is proud to announce the 8th Annual SADC Industrialisation Week (SIW). This event will take place from 28 July to 1 August 2025 at the Novotel Convention and Spa in Antananarivo, Madagascar, under the theme, Advancing Industrialisation, Agricultural Transformation, and Energy Transition for a Resilient SADC. The SIW is the largest public-private platform and consultative body for industrialisation in the SADC region. It provides a forum for member states, private sector leaders, international partners, policymakers, researchers, small and medium-sized enterprises (SMEs), financial institutions, and civil society to exchange insights, collaborate, and accelerate regional economic transformation. The week-long event will feature seminars, meetings, workshops, exhibitions, and site visits to manufacturing facilities. Key focus areas include mineral beneficiation, agro-processing, pharmaceuticals, energy transition, circular economy, SMEs, infrastructure development, women and youth entrepreneurship, the African Continental Free Trade Area, and more.

Source: SADC

Cabo Verde

AfDB approves EUR19.6-million in financing to scale up Cabo Verde’s pioneer in wind and battery storage capacity

The Board of Directors of the African Development Bank (AfDB) Group has approved a EUR19.6-million financing package to support the Cabeólica Phase II Expansion Project in Cabo Verde. The project is the country’s first renewable energy initiative to integrate wind power generation and battery energy storage systems at scale. The financing includes a loan of approximately EUR12.6-million from the AfDB, and EUR7-million in concessional loan financing from the AfDB Group-managed Sustainable Energy Fund for Africa. Building on the success of the original Cabeólica power project commissioned in 2012, Phase II will add 13.5 MW of wind generation capacity and 26 MWh of grid-connected battery energy storage. The expansion is expected to generate over 60 GWh of clean energy annually, eliminating expensive thermal generation and reducing carbon dioxide emissions by an estimated 50 000 tonnes annually.

Source: AfDB

Ghana

AfDB concludes strategic high-level mission to Ghana, identifies five key areas for transformational partnership

Representatives of the African Development Bank (AfDB) Group have concluded a week-long high-level mission to Ghana, marking the institution’s first major engagement with the country’s new administration under President John Dramani Mahama. The delegation, led by Solomon Quaynor, the AfDB Group’s Vice President for Private Sector, Infrastructure, and Industrialization, conducted extensive consultations with key government ministries, public agencies, and private sector stakeholders, to align the bank’s support with Ghana's transformational development priorities. At the conclusion of the mission, the bank identified five core areas for follow-up collaboration: mobilising domestic capital for infrastructure development; supporting the 24-hour Economy initiative; advancing transport infrastructure development; strengthening digital transformation foundation; and unlocking private sector investment opportunities.

Source: AfDB

Ghana

Fitch upgrades Ghana’s credit rating to ‘B-‘; Outlook Stable

Global credit rating agency Fitch Ratings has upgraded Ghana’s Long-Term Foreign-Currency Issuer Default Rating from ‘Restricted Default’ to ‘B-’ with a Stable Outlook. This signals growing investor confidence in Ghana’s economic recovery under the leadership of Finance Minister Dr Cassiel Ato Forson. The upgrade reflects significant progress in Ghana’s fiscal and debt management, following the successful restructuring of USD13.1-billion in Eurobond debt and the near-completion of outstanding external debt negotiations. Fitch notes that Ghana has normalised relations with most commercial creditors and expects full restructuring to be finalised by the end of 2025. One of the standout achievements recognised in the Fitch report is the sharp decline in inflation, which has dropped from 23% in 2024 to 18.4% in May 2025 – the lowest rate in over three years. Inflation is expected to continue falling, averaging 15% in 2025 and 10% in 2026, supported by tight monetary policy, fiscal discipline, and improved exchange rate stability.

Source: MyjoyOnline

Kenya

Kenyan leader signs law to tackle money laundering, terrorism financing

Kenyan President William Ruto has signed into law the Anti-Money Laundering and Combating of Terrorism Financing Laws (Amendment) Bill, 2025, aimed at strengthening the country’s fight against financial crimes. According to a statement from the Presidency issued in Nairobi, the capital, the legislation is designed to enhance Kenya’s framework for combatting money laundering, terrorism financing, and proliferation financing. “Its enactment represents a decisive step in bolstering the country’s financial system against illicit financial flows,” the statement said. The presidency said the amended law seals long-standing loopholes that have allowed the misuse of property transactions and shell companies for illegal financial activities, noting, “these legal reforms reaffirm Kenya’s standing as a leader in financial integrity and enhance the country's credibility in the global regulatory regime.”

Source: Xinhua

Liberia

IMF staff concludes staff visit to Liberia

An International Monetary Fund (IMF) staff team, led by Mr Daehaeng Kim, Mission Chief for Liberia, visited Monrovia from 4-17 June 2025, to conduct the 2025 Article IV Consultation and the second review under the Extended Credit Facility (ECF) arrangement. At the conclusion of the mission, Mr Kim issued the following statement, in part: “The IMF staff held engaging and constructive discussions with the authorities on recent macroeconomic developments, the economic outlook, and medium-term policy priorities under the Article IV Consultation, as well as the performance and policies supported by the [ECF] arrangement. The authorities have continued to make progress in maintaining macroeconomic stability, and their commitment to reform remains strong. Slow mining activity and fiscal adjustment were key factors that moderated economic activity in 2024. A significant reduction in unproductive expenditures combined with recovery of tax revenues contributed to an impressive fiscal outturn, with the primary fiscal balance improving from a deficit of 4.2% of GDP in 2023 to a surplus of 1.3% of GDP in 2024. Inflation reached 13.1% in February 2025, driven primarily by domestic food prices, but has come down to 11.7% in May. The current account has improved significantly. Overall, programme performance has been broadly satisfactory.”

Source: IMF

Mali

IMF staff completes 2025 Article IV mission to Mali

An International Monetary Fund (IMF) staff team, led by Ms Wenjie Chen, visited Bamako from 9-13 June 2025, to conduct the 2025 Article IV consultation with the Malian authorities. The team held productive discussions with the authorities and other stakeholders on recent economic developments, the outlook, and medium-term policies to support macroeconomic stability and inclusive growth. At the end of the visit, Ms Chen issued the following statement, in part: “Mali’s economy has shown some resilience despite significant headwinds. Economic growth is estimated at 4.7% in 2024 unchanged form 2023, due to a combination of factors, including an electricity crisis, flooding and lower gold production. The government’s fiscal deficit declined to 2.6% of GDP in 2024 driven by robust revenue mobilisation, exceptional payments form mining and telecommunications companies and tighter control of current spending amid constrained financing. Tight financing conditions in the West African Economic and Monetary Union, and the absence of external budget support resulted in high borrowing costs for the government. Real GDP growth is projected to increase to 5.0% in 2025, weighed down by reduced output from the shutdown of the largest gold mine and ongoing security risks. Contingent on resumption of full mining activities, growth is expected to rebound to 5.4% in 2026.” 

Source: IMF

Mauritius

IMF Executive Board concludes 2025 Article IV consultation with Mauritius

The Executive Board of the International Monetary Fund (IMF) completed the Article IV consultation for Mauritius. Mauritius’ economy remains resilient. Real GDP grew by 4.7% in 2024, from 5.0% in 2023, driven by services, construction, and tourism. Headline inflation (12-month average) declined to 2.5% in March 2025 from 7.0% in 2023, helped by easing international food and energy prices and lower fuel excise duties. The external current account deficit widened in 2024 to 6.5% of GDP, mostly reflecting higher imports and freight costs. Gross foreign reserves increased to USD8.5-billion by end-2024, covering almost 12 months of imports. Looking ahead, the country needs to address fiscal and structural challenges, notably the high public debt, significant public investment needs, low productivity, and an ageing society. The outlook for growth is favourable. Real GDP growth is projected to soften to 3.0% in 2025 due to weakening external demand, easing tourism activity, and the drought. Over the medium term, growth is expected at around 3.4%, reflecting demographic headwinds and labour shortages. Inflation is projected to average 3.6% in 2025 and remain within the Bank of Mauritius’ target range over the medium term. 

Source: IMF

Namibia

IMF Executive Board concludes 2025 Article IV consultation with Namibia

The Executive Board of the International Monetary Fund (IMF) completed the Article IV consultation for Namibia. The authorities have consented to the publication of the Staff Report prepared for this consultation. Namibia’s economic growth decelerated from 5.4% in 2022 to 3.7% in 2024 as a decline in production in response to lower diamond prices outweighed momentum stemming from rising gold and uranium prices. Oil exploration plateaued in 2024 following a spike in 2023, while agriculture contracted sharply due to the drought of 2023-2024, the most severe in a century. Inflation has fallen, reflecting a drop in food and fuel prices in international markets. Looking ahead, growth is projected to remain subdued in the near and medium term. The end of the drought is expected to boost growth in 2025; however, increased global trade policy uncertainty, particularly related to United States tariffs, and the weak diamond market will dampen momentum, with growth forecast at 3.75% for 2025 and 2026. Over the medium term, growth is projected to be about 3%, constrained by structural rigidities despite increased public capital expenditure. Average consumer price index inflation is projected to ease to 4.1% in 2025 and remain around 4.5% in the medium term.

Source: IMF

Namibia

Namibia secures climate finance through CIF industry decarbonisation programme

The Government of Namibia has been invited to participate in the Climate Investment Fund’s (CIF’s) USD1-billion industry decarbonisation investment programme, the first global concessional finance initiative dedicated to reducing industrial greenhouse-gas emissions in developing countries. Namibia was chosen from 26 global applicants and has now been invited to craft an investment plan that outlines how it plans to mobilise up to USD250-million of concessional capital to pioneer industry decarbonisation within its borders and beyond. Through the deployment of concessional funding, the programme is designed to support the private sector in developing clean technology supply chains, catalyse investment in low to net-zero carbon business models and drive the regional transition of high-emitting industries toward zero-carbon practices. The CIF notes that, in the process, the programme aims to position recipient countries for long-term economic competitiveness and will enable them to take advantage of the global market for green industrial goods projected to reach USD2-trillion by 2030.

Source: Engineering News

Nigeria

PEBEC announces nationwide initiative to drive ease of doing business in Nigeria

The Presidential Enabling Business Environment Council (PEBEC) has announced a nationwide tour to begin on 23 June 2025, to drive the ease of doing business and reforms in Nigeria. The Director General of PEBEC, Princess Zahrah Mustapha-Audu, disclosed this in a statement she personally signed recently. According to her, the initiative, which will run into mid-July this year, is to create a more conducive business environment, attract investment, and drive economic growth across Nigeria, Africa’s most populous nation. “The tour will run from the last week of June into mid-July. “The tour will feature technical sessions and town hall meetings, providing a platform for stakeholders to engage with government officials, share experiences, and propose reforms to ease business operations. The goal is to create a more conducive business environment, attracting investment and driving economic growth across Nigeria. The tour will provide an opportunity for businesses, investors, and the general public to interact with government officials, share concerns, and propose solutions to challenges hindering business growth,” she stated.

Source: Daily Post

Rwanda

Rwanda launches Climate Smart Agriculture Investment Plan to drive USD335-million in private investment

The newly released Rwanda Climate Smart Agriculture (CSA) Investment Plan, supported by International Finance Corporation (IFC), identifies RWF449.7-billion (USD335.4-million equivalent) in potential private sector investment opportunities into projects that will improve and increase food production in the country, supporting food security and job creation. The Ministry of Agriculture and Animal Resources and the Rwanda Green Fund, in collaboration with the IFC, launched the report recently. In the short term, the plan focuses on creating awareness, building an investment pipeline, supporting farmers and companies with technical assistance, and implementing policy solutions. In the longer term, the plan aims to scale and mainstream climate smart agriculture investments by securing additional funding, expanding investment opportunities, and implementing policy reforms. According to the plan, about two-thirds of the total investment opportunity will be in water supply and irrigation, with additional opportunities in climate-resilient planting and replanting, post-harvest loss reduction, climate-resilient livestock development, and enhanced soil health.

Source: IFC