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issue 601 | 06 Jul 2025

Africa

AfDB, AIIB sign MoU renewing their collaboration on sustainable economic development for Africa

The African Development Bank (AfDB) and the Asian Infrastructure Investment Bank (AIIB) have signed an agreement strengthening their collaboration on sustainable economic development, designed to boost infrastructure development and economic opportunities across the African continent. The memorandum of understanding (MoU), which builds on an earlier one in 2018, was signed by AfDB President, Dr Akinwumi Adesina, and AIIB President and Chair of the Board of Directors Jin Liqun on Saturday, 28 June. The signing took place on the sidelines of a meeting of Heads of Multilateral Development Banks held in Paris, France, the same day. The agreement outlines continued collaboration from both parties in six priority areas, aligned with the AfDB Group’s Ten-Year Strategy 2024–2033 as well as AIIB’s Corporate Strategy and its Strategy on Financing Operations in Non-Regional Members. The areas are: (i) green infrastructure; (ii) industrialisation; (iii) private capital mobilisation including public - private partnerships; (iv) cross-border-connectivity; (v) digitalisation; and (vi) policy-based financing. 

Source: AfDB

Africa

AfDB and Visa formalise strategic collaboration to expand digital access and ID solutions

The African Development Bank (AfDB) and Visa have formalised their cooperation to transform the African digital ecosystem. The partnership aims to enhance the affordability of mobile devices, computers and point of sale machines, expand access to secure digital identity (ID) solutions, and strengthen cybersecurity within the continent. Officialised at AfDB’s recent Annual Meetings in Abidjan, Côte d’Ivoire, the collaboration will support the creation of an affordable device mechanism, bridging the gap between usage and connectivity of internet and getting digital solutions closer to citizens. The collaboration will also focus on driving broader digital inclusion by expanding access to secure and scalable digital ID solutions, increasing the adoption of digital payment technologies, and strengthening cybersecurity across the financial ecosystem. 

Source: AfDB

Africa

Africa eyes pension funds to drive energy, infrastructure investment

Africa holds more than USD4-trillion in domestic capital, including approximately USD455-billion in pension fund assets. Yet, the majority of these funds remain locked in low-yield, short-term government securities. According to the Africa Finance Corporation’s State of Africa’s Infrastructure Report 2025, redirecting even a fraction of this capital toward energy and infrastructure could significantly reduce dependency on external financing while fast-tracking development across critical sectors. Several international pension funds have already begun investing in Africa’s energy and infrastructure sectors, playing a notable role in the continent’s development. In December 2024, Norwegian pension fund KLP, in partnership with Norfund, committed USD80-million to CrossBoundary Energy, a commercial and industrial solar and battery developer. The funding is supporting the expansion of a USD680-million portfolio of assets, comprising approximately 500 MW of solar, wind and thermal generation, along with 600 MWh of battery storage across 18 African countries. The portfolio serves a variety of sectors including mining, telecommunications and industrial clients. 

Source: Energy Capital & Power

Angola

Angola’s Endiama, Sodiam join Natural Diamond Council

Angolan state-owned diamond companies Endiama and Sodiam have joined international organisation the Natural Diamond Council (NDC) as contributing members. Effective 1 July 2025, Endiama and Sodiam will begin their commitment to the NDC with a contribution of USD8-million for the second half of 2025. “By joining the [NDC], Endiama and Sodiam are formalising our dedication to a global strategy that highlights the unmatched benefits of natural diamonds to new generations of consumers,” stated Diamantino Azevedo, Minister of Mineral Resources, Petroleum and Gas, Angola. Endiama and Sodiam join current NDC members De Beers, Okavango Diamond Company, Petra Diamonds, Rio Tinto and Murowa, reinforcing Angola’s commitment to transparency and sustainability in the diamond sector.

Source: Energy Capital & Power

Botswana

Botswana secures USD200-million OPEC Fund loan

The Organization of the Petroleum Exporting Countries (OPEC) Fund, a regular financier to the country’s public and private sector, has approved a USD200-million (BWP2.7-billion) loan to government, a deal sealed during Vice President Ndaba Gaolathe’s recent engagement in Austria. Gaolathe, who is also the Minister of Finance, attended the OPEC Fund’s Development Forum in June as part of his engagements with investors and funding partners. A statement released by the OPEC Fund says the loan complements a package from the African Development Bank (AfDB) which approved USD304-million in funding for Botswana in April. “A USD200-million policy-based loan will cofinance the Governance and Economic Resilience Support Programme alongside the [AfDB]. The programme is designed to enhance fiscal sustainability, strengthen governance frameworks and improve economic resilience,” reads the OPEC Fund statement. While in Austria, Gaolathe was also due to sign a Country Partnership Framework with the OPEC Fund, comprising a four-year roadmap (2025–2029) for cooperation in priority sectors including energy, infrastructure and innovation.

Source: Mmegi

Burundi

The inauguration of the Jiji hydroelectric power station marks a significant step towards the country's energy self-sufficiency

The President of Burundi, Évariste Ndayishimiye, officially inaugurated the Jiji hydroelectric power station, on 24 June, in the presence of numerous representatives of national authorities and development partners who cofinanced the project, including the African Development Bank Group. This major infrastructure, located in the southern province of Bururi, marks a decisive step forward in this East African country’s quest for energy self-sufficiency. It also sends a strong signal in favour of an investment-friendly climate, for a more inclusive and sustainable economic development of Burundi. “2025 marks a new era in Burundi’s energy development. Just as water is essential to life, energy is crucial to development,” President Ndayishimiye said at the inauguration ceremony. “I am convinced that this new source of available energy will enable new businesses to develop and transform production from different sectors.” Including the Mulembwe plant, which will be operational in the coming months, the two Burundian power plants will have a total installed capacity of 49.5 MW and an estimated annual output of 235 GWh of clean energy. They will supply electricity to 15 000 households, 7 000 businesses and 1 700 industrial facilities.

Source: AfDB

Côte d'Ivoire

AfDB Group approves second partial credit guarantee to support green projects

The Board of Directors of the African Development Bank (AfDB) Group has approved a second partial credit guarantee to help Côte d'Ivoire raise funds for strategic green and social projects. This risk-sharing instrument will enable the country to access competitive financing from international commercial banks, including funding in local currency. The transaction builds on a successful EUR533-million AfDB-guaranteed facility completed in 2023. Côte d'Ivoire continues to show economic resilience and improved credit ratings. The West African country is committed to increasing revenue mobilisation while ensuring prudent debt management. The guarantee allows Côte d'Ivoire to diversify its funding sources and secure longer-term loans that align with its Medium-Term Debt Management Strategy for 2024-2028. It also provides access to long-term local currency financing, helping address structural liquidity challenges in the regional financial market. Proceeds will fund sectors aligned with the Sustainable Development Goals and Côte d'Ivoire's National Development Plan 2021-2025. Priority areas include sustainable agriculture, water and sanitation, renewable energy, health, affordable housing, education, and financial inclusion.

Source: AfDB

Côte d'Ivoire

IMF Executive Board completes the fourth review of the EFF/ECF arrangements and the third review of the RSF arrangement for Côte d’Ivoire

The Executive Board of the International Monetary Fund (IMF) completed the fourth review of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements and the third review of the Resilience and Sustainability Facility (RSF) arrangement for Côte d’Ivoire. The EFF/ECF-supported programme approved in May 2023 in the amount of SDR2 601.6-million (equivalent to 400% of quota or about USD3.6-billion), has substantially reduced imbalances and safeguarded a moderate risk of debt distress rating, while important reforms under the RSF arrangement for a total amount of SDR975.6-million (equivalent to 150% of quota or about USD1.3-billion) are contributing to prospective balance of payments stability and economic resilience to climate-induced shocks. The authorities’ ongoing commitment to reforms under both programmes should support Côte d’Ivoire’s sustainable transformation toward upper middle-income status over the medium-term. Programme implementation has been generally strong thus far, with all end-December performance criteria met and implementation of structural benchmarks being satisfactory. 

Source: IMF

Djibouti

Staff concluding statement of the 2025 Article IV mission

Djibouti has been navigating regional tensions well, with robust growth, moderate inflation, and recovering reserves. In response to global uncertainties and domestic debt challenges, the authorities plan significant fiscal consolidation, including leveraging state-owned enterprises dividends meaningfully, and advancing creditor dialogue. The authorities remain dedicated to investing in human capital and creating favourable investment conditions for job creation. Djibouti helps maintain regional stability by supporting maritime security and facilitating humanitarian responses during crises. Djibouti's GDP per capita has effectively doubled over the past decade thanks to significant investments that have contributed to the modernisation of the economy. However, declining government revenues and increasing debt service have placed considerable strain on public finances, leading to unsustainable levels of public debt and diminishing reserves. Growth has not created enough jobs in the formal sector, while fiscal space to finance development needs is limited. The authorities are leveraging Djibouti’s growth resilience to advance fiscal consolidation and rebuild reserves. 

Source: IMF

Guinea

Guinea Economic Update: Domestic Resource Mobilization and Management for Inclusive and Sustainable Development

The second edition of the Guinea Economic Update offers an in-depth analysis of the country’s evolving macroeconomic position and examines how Guinea can increase domestic resource mobilisation and management to achieve its development goals. The report, Domestic Resource Mobilization and Management for Inclusive and Sustainable Development, presents a dual focus: an evaluation of macroeconomic developments and outlook, and an examination of Guinea’s potential to enhance and manage domestic revenues, particularly in light of the expected windfall from the Simandou iron ore project. The first part of the report highlights Guinea’s ongoing and anticipated economic growth, with GDP growth reaching 5.7% in 2024, projected at 6.5% in 2025, and averaging 10% in 2026/27, driven by expanding mining activity. However, the report underscores that recent growth has not significantly reduced poverty, which remains high at 52%, due to limited job creation in the non-mining sectors. “In recent years, Guinea has achieved robust growth, primarily fuelled by the mining industry and agriculture. Yet, the key challenge remains in transforming growth into employment opportunities for Guineans,” said Marilyne Youbi, World Bank Group Economist and Lead Author of the report.

Source: World Bank

Guinea-Bissau

IMF Executive Board concludes 2025 Article IV consultation and completes the eighth review under the ECF with Guinea-Bissau

The Executive Board of the International Monetary Fund (IMF) has concluded the 2025 Article IV consultation and completed the eighth review under Extended Credit Facility (ECF) arrangement for Guinea-Bissau. The three-year arrangement, approved on 30 January 2023, aims to secure debt sustainability, improve governance, and reduce corruption, while creating fiscal space to foster inclusive growth. The executive board granted an augmentation of access (140% of quota or SDR39.76-million) on 29 November 2023. The completion of the eighth review enables the disbursement of SDR4.73-million (about USD6.5-million) to help meet the country’s balance-of-payments and fiscal financing needs. This brings total disbursement under the arrangement to SDR35.04-million (about USD48.1-million). The authorities have consented to the publication of the Staff Report prepared for this consultation. Programme performance was mixed. Seven out of nine Quantitative Performance Criteria and three out of four Structural Benchmarks for end-December 2024 were met. Economic growth is projected to reach 5.1% in 2025, supported by strong exports and investments, while inflation is expected to decelerate and average 2%. 

Source: IMF

Kenya

IMF staff completes Governance Diagnostic mission to Kenya

At the request of the Kenyan authorities, an International Monetary Fund (IMF) Technical Assistance mission led by Rebecca A. Sparkman visited Kenya from 16-30 June 2025, to conduct a Governance Diagnostic. This mission followed the scoping mission held from 3-5 March 2025. The Governance Diagnostic aims to identify macro-economically critical governance weaknesses and corruption vulnerabilities, and design an action plan with specific, sequenced recommendations and reform priorities. Reflecting the breadth of the Governance Diagnostic exercise, the visiting team comprised staff from a number of IMF departments, including the Fiscal Affairs; Legal; Finance; Monetary and Capital Markets; and Strategy, Policy and Review Departments, as well as World Bank staff. They engaged with the government and non-governmental stakeholders to examine governance weaknesses and corruption vulnerabilities across core state functions as provided by the IMF’s 2018 framework for Enhanced Engagement on Governance. To this end, the mission team met with Kenyan authorities, including those responsible for public financial management (including procurement), expenditure policy, tax policy, revenue administration, the mining sector, market regulation, rule of law, central bank governance and operations, financial sector oversight, and anti-money laundering / combatting the financing of terrorism.

Source: IMF

Madagascar / United Arab Emirates

Global South Utilities to build 50 MW solar-storage site in Madagascar

The United Arab Emirates' Global South Utilities (GSU) will develop a 50 MW solar farm, coupled with 25 MWh of battery energy storage capacity, in Madagascar, as part of a broader partnership with local authorities. The initiative will be implemented in collaboration with the local ministry of hydrocarbons and energy, which is expected to lead to a future power purchase agreement with Madagascar's national utility JIRAMA. In addition to the solar-plus-storage project, which will be built in Moramanga, the parties intend to explore further renewable energy opportunities in the country, with the aim of adding up to 250 MW of new capacity. GSU specialises in power generation, developing power plants encompassing a wide range of energy infrastructure, including renewable energy sources such as solar and wind power, as well as battery energy storage systems.

Source: Renewables Now

Mali

Mali completes takeover of gold mines abandoned by foreign companies

Mali has completed its takeover of the Yatela and Morila gold mines abandoned by their previous owners, the government announced recently, but questions remain over how any untapped value can be released. The takeovers and failure to disclose how the operations will be funded highlight the complex challenges facing Mali as it seeks to regain control of its natural resources and leverage high commodity prices to boost the economy, mirroring moves by other West African states including Burkina Faso and Niger. Mali's military leaders, who took power after coups in 2020 and 2021, announced their intentions to nationalise the mines last year. Since taking power, the military government has pressured foreign mining companies through increased taxes, revised contracts, regulatory crackdowns and a general pivot from Western investors to Russian interests. Mali produces about 65 tons of gold annually, making it Africa's second-largest producer. Gold prices, meanwhile, have remained strong this year, spurred largely by the United States President Donald Trump's tariff impositions and wider geopolitical uncertainty.

Source: Reuters

Mauritania

Mauritania approves EUR79.6-million energy, EUR43-million water infrastructure financing agreements

Mauritania’s Council of Ministers has approved two key financing agreements aimed at improving electricity reliability and expanding access to potable water in the country. The agreements were approved during a meeting on 25 June under the chairmanship of Mauritania’s President Mohamed Ould Cheikh El-Ghazouani. The first agreement, signed with the International Development Association, has secured EUR79.6-million in financing for Phase 1 of an energy resources development and mining project in the country. The project aims to enhance the stability of the national power grid through renewable energy and storage solutions. It also supports investments in green hydrogen, renewables and mining, along with training and local content strategies. The second agreement, signed with the French Government, involves a EUR43-million loan to support the expansion of the Aftout Essahli water supply system. The project aims to secure water supply for Nouakchott by increasing daily production from 150 000 m3 to 225 000 m3. It includes construction of a third decanter at the Beninadji treatment plant, new pumping and filtration equipment and rehabilitation of existing facilities.

Source: Energy Capital & Power

Nigeria

Major developments in Nigeria’s oil and gas sector

Nigeria aims to increase crude oil production to upwards of 2 million barrels per day (bpd) by 2026, reinforcing its position as one of Africa’s leading oil producers. Recent developments in the oil and gas sector – spanning regulatory reform, strategic acquisitions, infrastructure projects and enhanced exploration and production activities – support this goal, as both indigenous and international operators expand their investments in the country. Nigerian energy firm Green Energy International Limited has exported its first oil from the country’s first indigenous onshore crude export terminal in Otakikpo, Rivers State. Commissioned in June 2025, the facility features 750 000 barrels of storage – expandable to 3 million barrels – and an export capacity of 360 000 bpd. Crude is transported via a 23 km pipeline to a single-point mooring system. The terminal’s first cargo, lifted by a Shell-chartered Aframax tanker, marked the start of operations. Completed in less than two years, the project is designed to serve about 40 marginal fields and reduce evacuation costs by up to 40%. Energy major ExxonMobil is set to inject USD1.5-billion between 2025 and 2027 into revitalising the Usan deepwater oilfield (OML 138) in Nigeria’s Niger Delta. 

Source: Energy Capital & Power

Somalia

Somalia’s economic prospects are positive, but foreign aid cuts are downsizing growth

Somalia’s economy continued its overall strong performance in 2024, with growth at 4.0% supported by improved performance of agriculture, enhanced private consumption reinforced by sustained growth in remittances, and declining commodity prices. The 2025 Somalia Economic Update, Edition 10, issued by the World Bank recently, says the outlook remains positive, but growth is set to slow down in 2025 due to increased aid uncertainty, which has intensified recently, given Somalia's heavy reliance on external assistance. This comes as Somalia is navigating a pivotal moment in its development journey, emerging from decades of conflict with renewed hope and strategic vision. “It is important for Somalia to continue building its economic institutions, capable of navigating the complexities of its socio-economic landscape and supporting sustained and long-term growth,” said Kristina Svensson, World Bank Country Manager for Somalia. “Somalia needs to double its efforts to strengthen its domestic revenue mobilisation and lay the foundations for a more resilient and self-sufficient state.”

Source: World Bank

Tanzania

IMF Executive Board concludes the 2025 Article IV consultation and completes the fifth review under the ECF arrangement, and the second review under the RSF arrangement with Tanzania

The Executive Board of the International Monetary Fund (IMF) has concluded the 2025 Article IV consultation with Tanzania and completed the fifth review of the Extended Credit Facility (ECF) arrangement and the second review of the Resilience and Sustainability Facility (RSF) arrangement. The authorities have consented to the publication of the Staff Report prepared for this consultation. Completion of the fifth ECF review allows for the immediate disbursement of about USD155.7-million (28.5% of quota, SDR113.37-million), bringing Tanzania’s total access under the ECF arrangement to about USD908.3-million. Completion of the second RSF review allows for the immediate disbursement of about USD292.7-million (53.5% of quota, SDR213.1-million), bringing Tanzania’s total access under the RSF arrangement to about USD345.4-million. The 40-month ECF arrangement with Tanzania for a total access of about USD1 046.4-million at the time of programme approval (200% of quota, SDR795.58-million) was initially approved in July 2022, and was extended by 6 months in June 2024. The arrangement aims to support economic recovery, preserve macro-financial stability, and promote sustainable and inclusive growth. The 23-month RSF arrangement with Tanzania, approved in June 2024 (150% of quota), supports the authorities’ reforms to reduce prospective balance of payments risks and enhance economic resilience to climate change. 

Source: IMF

Tanzania / Luxembourg

Tanzania’s CRDB Kijani Bond listed on Luxembourg Stock Exchange

CRDB Bank Group has listed its TZS171.8-billion green bond on the Luxembourg Stock Exchange (LuxSE), becoming one of the first commercial banks in sub-Saharan Africa to achieve such a listing. The move to list CRDB Bank Group’s Kijani Bond at the LuxSE highlights Africa’s participation in global climate-focused investment markets. A statement from CRDB Bank Group’s headquarters in Dar es Salaam said that the Kijani Bond is now featured on the Luxembourg Green Exchange, a platform for sustainable finance. The listing was marked on 30 June with a Ring the Bell ceremony at LuxSE, attended by CRDB Bank Group CEO Abdulmajid Mussa Nsekela, LuxSE Chief Commercial Officer Arnaud Delestienne, and Tanzania’s Chargé d’Affaires to Belgium and Luxembourg, Mr Juma Ali Salum. Representatives from Orbit Securities, the sponsoring broker for the bond, also attended. “This listing is more than a financial milestone, it is a step forward in Africa-Europe collaboration on green finance,” said Mr Nsekela. He said the fact that the bond was subscribed by 429% shows that Africa is ready to take part in sustainable finance. The Kijani Bond, the first of its kind in Tanzania and among the largest green bonds in the region, raised the equivalent of USD65.7-million. The proceeds are being directed to renewable energy, climate-smart agriculture, clean cooking, green buildings, water and sanitation, and transport.

Source: The Citizen

Togo

IMF Executive Board completes the second review under the ECF arrangement for Togo

The Executive Board of the International Monetary Fund (IMF) completed the second review of the Extended Credit Facility (ECF) arrangement for Togo. The board’s decision enables the immediate disbursement of about SDR44.0-million (about USD60.5-million), which will be used for budget support. The ECF arrangement provides overall financing of SDR293.60-million (about USD403.4-million) on favourable terms. The IMF approved the ECF arrangement in March 2024 to help the authorities address the legacies of shocks experienced since 2020, notably the COVID-19 pandemic and the increase in global food and fuel prices. The Togolese authorities were able to lessen the impacts of these shocks on the Togolese population, but this came at the price of large fiscal deficits and a rapidly rising public debt burden. The IMF-supported government programme aims to (i) make growth more inclusive while strengthening debt sustainability, and (ii) implement structural reforms to support growth and limit fiscal and financial sector risks. The IMF Executive Board completed the first ECF review in December 2024. The medium-term outlook is broadly favourable, with continued robust growth. Economic growth reached an estimated 5.3% in 2024 and is projected at 5.2% in 2025 and 5.5% per year thereafter, according to IMF staff projections, barring major adverse shocks. 

Source: IMF

Zambia

Leveraging Zambia’s energy transition minerals: Roadmap for economic transformation

Zambia's economy grew by 4% in 2024, displaying resilience despite experiencing a historic drought and frequent power outages. According to the latest edition of the Zambia Economic Update (ZEU) launched by the World Bank Group, titled Leveraging Energy Transition Minerals for Economic Transformation, this growth is driven by a strong recovery in the mining sector and expansion in services. The ZEU highlights that agriculture – the cornerstone of Zambia’s employment and heavily dependent on rainfed farming – faced significant headwinds. However, its minimal contribution to GDP allowed overall growth to continue. Despite economic growth, GDP per capita growth slowed to 1.2% in 2024, and poverty remains pervasive, with 63.1% of the population living below the USD2.15 poverty line. “Notwithstanding these challenges, it is commendable how the Government of Zambia has stayed fiscally disciplined amid increasing financing needs caused by the drought, within the framework of ongoing debt restructuring and an International Monetary Fund programme,” said Albert Pijuan, World Bank Senior Country Economist for Zambia. “Revenues increased thanks to expanded copper production – although they remain below potential – and investment spending was significantly reduced, allowing for a large primary surplus in 2024.”

Source: World Bank

Zambia

Zambia launches largest grid-connected solar power project

Zambia has launched a 100 MW solar photovoltaic project, the country's largest grid-connected solar initiative to date, marking an important step toward addressing its ongoing energy deficit. The USD100-million Chisamba Solar Plant, located in central Zambia's Chisamba District, was developed by the Kariba North Bank Extension Power Corporation, a subsidiary of state-run power utility ZESCO Limited. This project represents a significant step in Zambia's goal of adding 1 000 MW of solar power to the national grid by the end of 2025. Constructed by PowerChina International Group Limited, which served as the engineering, procurement and construction contractor, the project was financed by Stanbic Bank and ZESCO Limited. Construction of the first phase began in July 2024. A second phase, involving an additional 100 MW solar plant, is expected to commence soon. The project encompasses a 100 MW solar power station, a 33/132 kV step-up substation, and the expansion of an existing substation. The commissioning ceremony was attended by President Hakainde Hichilema, government officials, representatives from the Chinese Embassy in Zambia, and executives from PowerChina International Group Limited.

Source: Xinhua