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issue 603 | 20 Jul 2025

Africa

Building trust through effective service delivery in Africa

The World Bank's annual 2025 Africa Country Policy and Institutional Assessment (CPIA) report for sub-Saharan Africa, released recently, reveals that despite a stable average CPIA score for the region, there is an urgent need for governments in Africa to improve the delivery of essential services to promote inclusive, sustainable growth. The CPIA report evaluates the quality of policy and institutional reforms in the International Development Association eligible countries in sub-Saharan Africa for the calendar year 2024. According to the report, the average CPIA score for the region remained similar to 2023 at 3.1 points (out of 6). While some areas saw strong reforms, poor performance in governance offset these gains, and improvements were concentrated in already well-performing countries. The CPIA report underscores that meeting the needs of African citizens will require mobilising the government to provide services amid limited external financing. The report serves as a vital guide for policymakers and international investors, identifying specific reform actions to support effective public service delivery and foster a more resilient and prosperous future for sub-Saharan Africa. The report details significant shortfalls across various public service sectors. Infrastructure-related services, including transport, remain underdeveloped, hindering economic activity and quality of life. 

Source: World Bank

Africa

Fraud risks, prevention and detection strategies for the African beer brewing industry

Several major companies dominate the beer brewing industry across Africa, with operations spanning multiple regions and consolidating significant market shares. One of the most prominent examples is AB InBev, who acquired SABMiller in 2016, thereby inheriting long-established brands such as Castle Lager and Carling Black Label. Through this acquisition, AB InBev rapidly expanded its footprint in South Africa and the rest of the continent, leveraging SABMiller's well-developed distribution channels and brand recognition. Heineken also maintains a robust presence across Africa, operating breweries in countries such as Nigeria, Rwanda, Kenya, and Uganda, and partnering with regional beer makers to craft products tailored to local tastes. Another key player is Diageo, a global beverages company that holds a majority stake in East African Breweries Ltd, which is particularly well-known for the Tusker brand in Kenya and surrounding countries. Namibia Breweries, based primarily in Namibia but active in various neighbouring markets, further enhances the competitive landscape by producing globally recognised labels such as Windhoek Lager. Brewing operations have multiple stakeholders and extensive supply chains involving raw materials, packaging, transport, and distribution. If not closely monitored, opportunities for fraud may arise, which can adversely impact commercial outcomes, brand reputation, and consumer safety.

Source: ENS

Africa

Trump to slap 10% tariff on small nations including in the Caribbean and Africa

United States (US) President Donald Trump is ramping up his tariff agenda, announcing plans to impose new duties of over 10% on imports from smaller nations, including several in Africa and the Caribbean. The move marks a sharp shift in US trade policy, aimed at what President Trump describes as "reciprocal" treatment. Several African countries are already preparing for steep increases. Lesotho, a small Southern African nation, could face tariffs as high as 50% on goods exported to the US. While the tariffs are currently on hold during a three-month consultation period, concerns are rising over the long-term economic fallout. “These are countries. Many of them, you know, like 200 countries,” President Trump said in response to questions about which nations would be affected. “[We will] probably set one tariff for all of them.” US Commerce Secretary Howard Lutnick supported the move, saying the president plans to handle small nations in the way he believes is most effective. “The Caribbean countries, African countries. There are a lot of them,” Lutnick said. The World Trade Organization (WTO) is urging the US to reconsider. WTO Director-General Ngozi Okonjo-Iweala has called for African countries to be exempt from the proposed tariffs, warning that such actions could severely damage developing economies and undo years of progress.

Source: Africanews

Botswana

Botswana launches economic transformation programme to diversify economy

Botswana President Duma Boko recently unveiled the Botswana Economic Transformation Program, calling for bold ideas to accelerate the country's growth and drive national development. Through the programme, Botswana aims to reshape its economic landscape through inclusive and sustainable development, President Boko said. The programme seeks to drive Botswana's transition into a more diversified, resilient and globally connected economy. "The programme will establish Botswana as a regional anchor for cross-border financial activity, leveraging our legal certainty, political stability, and reputational standing," President Boko said. He said that the initiative aligns with the government's manifesto and promotes macroeconomic stability and resilience to global shocks. "We will attract local and international investors with precision, purpose, and a world-class execution framework," he said. The president made the remarks at an event that also marked the launch of the Call for Ideas website, part of a four-week nationwide campaign inviting bold, scalable projects, public sector reforms, and high-impact proposals to support the programme.

Source: Xinhua

Burkina Faso

Burkina Faso Economic Update: Energy for economic growth

According to the World Bank's April 2025 Burkina Faso Economic Update, the country's economy grew by 4.9% in 2024 compared to 3.0% in 2023. Real per capita GDP growth also increased from 0.7% to 2.5% over the same period. This acceleration is attributed mainly to the performance of services and agriculture, supported by an improved security situation, favourable weather conditions, and increased government support to the agriculture sector. However, inflation increased in 2024 to 4.2% from 0.7% in 2023, driven by the spike in food prices, caused by market speculation linked to a late start to the rainy season. Despite this, the strong growth in the agriculture and services sectors in 2024 reduced the extreme poverty rate by 3 percentage points to 23.2%, with a sharper decline in rural areas. Despite this, the absolute number of people living in poverty remains high, exceeding 5.5 million. The report also notes a decline in the twin deficits (fiscal and current account) in 2024. The fiscal deficit improved in 2024 from 6.5% to 5.6% of GDP, thanks to better control of public spending and increased revenue mobilisation. 

Source: World Bank

Cabo Verde

IMF Executive Board concludes the sixth review under the ECF arrangement and approves the requests for extension and augmentation of the arrangement, and the extension and rephasing under the RSF arrangement

The Executive Board of the International Monetary Fund (IMF) completed the sixth review under the Extended Credit Facility (ECF) arrangement, which was approved on 15 June 2022, and approved a 15-month extension and augmentation under the arrangement. The augmentation of 30% of quota (SDR7.11-million) brings access under the ECF arrangement to SDR52.14-million. The completion of the sixth ECF review allows the disbursement of SDR4.51-million (approximately USD6.18-million). The executive board also approved the authorities’ request for a 15-month extension under the Resilience and Sustainability Facility (RSF) arrangement, rephasing of the availability dates for delayed reform measures (RMs), and the modification of one RM. Cabo Verde’s economy continues to perform well, underpinned by tourism, robust export performance, and private consumption growth. Economic growth in 2024 was strong at 7.3%, with 5.2% growth expected in 2025. Inflation is projected to stay near 2%, and the current account is expected to return to a small deficit in 2025. Continued data-driven adjustments in monetary policy may be needed to protect the exchange rate peg and appropriate reserves buffers. 

Source: IMF

Cameroon

Cameroon’s Economic Update: Harnessing forests and natural wealth for sustainable growth

The World Bank Group has launched the 2025 Cameroon Economic Update, titled Cameroon’s Green Gold: Unlocking the Value of Forests and Natural Capital. The report provides a comprehensive analysis of the nation’s recent economic developments, medium-term outlook, and the critical role of wealth accounting in assessing the country’s economic performance. The report places a special emphasis on the importance of sustainable forests and natural resources management as drivers of inclusive and resilient development. According to the report, Cameroon’s GDP grew by 3.5% in 2024, up from 3.2% in 2023, driven by rising cocoa prices, enhanced cotton yields, and improved power supply. Average inflation declined sharply from 7.4% to 4.5% between 2023 and 2024, thanks to tighter monetary policy, price controls, and reduced import inflation. The current account deficit narrowed from 4.1% to 3.4% of GDP, mainly due to the cocoa price surge. However, the overall fiscal deficit widened to 1.5% of GDP, compared to 0.7% of GDP in 2023, due to a slippage in current expenditures and weaker-than-expected revenues. Public debt rose slightly from 46.1% to 46.8% of GDP, with most of this increase in the form of external debt. The medium-term outlook is moderately positive, with an anticipated average real GDP growth of 3.9% from 2025 to 2028.

Source: World Bank

Côte d'Ivoire

Côte d'Ivoire moves to formalise its vast informal gold mining sector

Facing significant losses from illicit gold trade and seeking to formalise a vital, yet often dangerous sector, Côte d'Ivoire has joined forces with the World Bank and the World Gold Council in an ambitious partnership to transform its small-scale mining. The agreement signed recently seeks to improve safety and transparency in an industry that supports half a million livelihoods but has long struggled with poor regulation, environmental harm, and widespread smuggling. The new initiative – the Multistakeholder Partnership for Sustainable and Responsible Small-Scale Mining – includes key industry players such as Endeavor Mining, Perseus Mining, and the Chamber of Mines of Côte d’Ivoire. It represents a concerted effort to shift artisanal and small-scale gold production into a regulated, traceable market. “Côte d’Ivoire is leading the way in transforming artisanal and small-scale mining into a more professional, regulated sector," said Mamadou Sangafowa-Coulibaly, the Minister of Mines, Petroleum, and Energy of Côte d’Ivoire. He emphasised that the partnership was a "crucial step" in making small-scale mining "safer, more transparent, and a driver of development, growth, and job creation."

Source: World Bank

Democratic Republic of the Congo

DRC, NG9 Holding sign agreements on energy, mining projects

The Democratic Republic of the Congo (DRC) has signed two confidentiality agreements with Emirati investment firm NG9 Holding. The agreements aim to diversify the DRC’s economic partnerships and support the transformation of its energy and mining sectors. The first agreement – signed with Congolese renewable energy firm Kipay Energy – will see NG9 Holding offer financial support for the Sombwe hydroelectric project in Haut-Katanga. Developed by Kipay Energy, the project combines a hydroelectric station with a 46 MW solar facility to produce 166 MW of renewable energy. The second agreement was signed with mining firm Buenassa and aims to support the DRC’s first integrated copper-cobalt refinery. With production starting in 2027, the refinery targets an annual output of 30 000 tons of copper cathodes and 5 000 tons of cobalt sulphate. The first phase of the development is estimated to cost USD600-million. These agreements will help lay the groundwork for funding Congolese-led projects that currently lack financial backing.

Source: Energy Capital & Power

Ghana

Ghana sees economic recovery backed by policy coordination: central bank

Bank of Ghana Governor, Johnson Asiama, has said that the country's economy has been recovering, thanks to synchronised policy implementation between the central bank and the Ministry of Finance. Asiama said during a business breakfast meeting that the local cedi currency had appreciated by more than 42% between January and June, reversing the declines of the previous two years. According to him, gross international reserves stood at USD11.1-billion by the end of June, up from USD8.98-billion at the end of 2024, with a trade surplus of USD4.14-billion in the first four months of 2025, as exports grew by over 60%, mainly from gold, cocoa and crude oil. Moreover, the governor said the West African country's current account surplus improved significantly to USD2.12-billion in the first quarter of 2025, compared to just USD66-million a year earlier, as remittance inflows remained resilient. The governor said that the outcomes are more than just statistical improvements but mark a restoration of macroeconomic credibility. He added that the outcomes were due to the firm monetary policy stance of the Bank of Ghana, raising and holding the policy rate at 28%, complemented by the government's prudent fiscal management. 

Source: Xinhua

Kenya

Kenya drops visa requirements for African nations, boosting intra-continental trade

Kenya has removed visa requirements for all African and most Caribbean nations, as countries on the continent continue employing measures to increase intra-African trade. Holders of Zimbabwean passports previously did not need a visa to enter Kenya but an Electronic Travel Authorisation (ETA), a requirement that has also been scrapped. This means that travellers from African countries now do not have to fill out lengthy forms and are not required to pay any visa fees. “As part of efforts to support open skies policies and tourism growth, a key proposal is to grant ETA exemptions to all African countries, except Somalia and Libya, due to security concerns,” read part of a dispatch from the Kenyan Cabinet. Similarly, Zimbabwe, South Africa, Namibia, Mozambique and Angola recently agreed to pilot the Southern African Development Community (SADC) Tourism Univisa, which is expected to boost intra-regional tourism. The development was announced at the end of the SADC Transfrontier Conservation Areas Summit of Heads of State and Government held in Harare.

Source: The Herald

Malawi

Malawi Economic Monitor: Navigating Uncertainty

Malawi’s economy is in a deep and protracted crisis marked by elevated inflation, declining living standards, and high rates of food insecurity. Economic growth rates have dropped from an average of 4.1% (2011-2019) to 2.2% since 2020. This economic growth rate is below the population growth rate of 2.6%, resulting in declining incomes for the average Malawian. In 2024, economic output growth further slowed to 1.8%, influenced by an El-Niño-induced drought and continued foreign exchange shortages. Inflation remains elevated, influenced by high food prices, exchange rate dynamics, and monetary expansion fuelled by high fiscal deficits. This is according to the 21st Edition of the Malawi Economic Monitor (MEM), titled Navigating Uncertainty. The MEM observes that Malawi’s economy continues to be in a vulnerable position. GDP growth for 2025 has been downgraded to 2.0%, from 4.2% projected at the end of 2024, due to a weaker-than-expected agricultural season, suspension of some bilateral foreign assistance and the continued difficulties faced by the private sector to import critical inputs. The premature end of the International Monetary Fund  programme will also likely have negative implications for other external financing. 

Source: World Bank

Namibia

Mining sector spends NAD24-billion on local procurement

The mining industry spent NAD23.94-billion on local procurement in 2024. This is after generating revenue of NAD51.3-billion. Chamber of Mines of Namibia Chief Executive Veston Malango says the revenue was a decrease of 0.4% due to lower sales in the diamond industry. “In 2024, the mining sector contracted by 1.2%, primarily due to lower output from diamond mining. However, mining still makes a significant contribution to Namibia’s economy, accounting for 13.3% of the [GDP],” he says. The industry paid NAD3-billion in corporate taxes, NAD2.2-billion in royalties, and NAD360-million in export levies. According to Malango, employment in the sector also increased, with 97% of those employed being Namibians. “Employment increased to 20 843 direct jobs, a 14.6% rise from last year, reaffirming the industry’s role in job creation,” he says. In terms of investment, the sector recorded a decrease in fixed investments, with an increase in exploration investment. “While fixed investment decreased to NAD5.2-billion, exploration spending surged to NAD1.5-billion, surpassing the billion-dollar mark for the first time and signalling renewed confidence in the sector’s long-term prospects,” Malango said. 

Source: The Namibian

Niger

IMF Executive Board completes the seventh review of the ECF arrangement and the third review of the arrangement under the RSF with Niger

The Executive Board of the International Monetary Fund (IMF) has completed the seventh review of Niger’s economic and financial programme supported by the Extended Credit Facility (ECF) arrangement, and the third review under the Resilience and Sustainability Facility (RSF) arrangement. Niger’s ECF was approved on 8 December 2021 and complemented by the RSF in July 2023. The ECF arrangement was extended by 12 months until December 2026 to support the implementation of additional reforms to consolidate recent progress in governance, to entrench sound fiscal policies, and to address the protracted balance of payments needs induced by the tight financing environment. The completion of the reviews allows for the immediate disbursement of SDR13.16-million (about USD18-million) under the ECF – bringing total disbursements under the arrangement to SDR184.24-million (about USD245-million) – and of SDR17.108-million (about USD23-million) under the RSF, bringing total disbursements under the RSF arrangement to SDR76.988-million (about USD101-million). 

Source: IMF

Senegal

Senegal raises USD644-million in oversubscribed domestic bond offering

Senegal has raised F.CFA364-billion (USD644-million) in its second public bond offering of 2025, exceeding its initial target of F.CFA300-billion, the West African nation's finance ministry said in a statement. The issuance, which ran from 19 June to 8 July, was arranged by CGF Bourse with Societe Generale Senegal as co-lead. It forms part of the government's broader strategy to diversify budget financing sources, deepen the domestic capital market, and manage public debt. Senegal has seen mounting concerns about its debt levels. Its international bonds have lost roughly a quarter of their value since revealing in September it had what analysts estimated as up to USD14-billion of previously undisclosed debt. That pushed its debt-to-GDP ratio towards 120%, making it one of the highest in Africa. Despite the debt concerns, the latest offering was oversubscribed by 21.3%, reflecting strong demand from both domestic and regional investors. The ministry attributed the success of the issuance to growing investor confidence in Senegal's economic outlook. "In a challenging economic environment, this fundraising effort enhances the credibility of Senegal's financial signature," the ministry said in the statement. 

Source: Reuters

Somalia

IMF Executive Board concludes the third review of the ECF for Somalia

The Executive Board of the International Monetary Fund (IMF) has completed the third review of Somalia’s economic reform programme supported by the Extended Credit Facility (ECF) arrangement. The board’s decision enables the immediate disbursement of SDR7.5-million (about USD10-million), which will be channelled for budget support, bringing Somalia’s total disbursement under the ECF to SDR52.5-million (about USD70-million). Somalia’s ECF arrangement was originally approved by the executive board on 19 December 2023. The programme supports the authorities’ post-Heavily Indebted Poor Countries reform strategy to further strengthen key economic institutions and promote macroeconomic stability and growth, in line with Somalia’s National Transformation Plan and Centennial Vision 2060. Following the executive board discussion, Mr Nigel Clarke, Deputy Managing Director and Chair, made the following statement, in part: “The Somali authorities have maintained reform momentum with strong performance under their fund-supported programme despite significant global and domestic challenges. The newly launched National Transformation Plan provides a welcome medium-term reform agenda to build resilience, promote inclusive growth, and reduce poverty.” 

Source: IMF

Tanzania

Dar es Salaam trade fair generates TZS7.06-billion as prime minister issues seven key directives

The 49th Dar es Salaam International Trade Fair concluded on Sunday, 13 July, with reported sales exceeding TZS7.06-billion and orders secured worth more than TZS44.4-billion. Closing the 16-day event at the Mwalimu Nyerere Fair Grounds, Prime Minister Kassim Majaliwa issued seven directives aimed at strengthening the country’s trade sector and enhancing future exhibitions. He directed all ministries overseeing business in Tanzania to work more closely with the private sector, urging them to address constraints limiting full participation in trade exhibitions. “Engage with the private sector. Let us listen to their concerns, identify the bottlenecks, and resolve them to ensure they can participate meaningfully in future exhibitions,” he said. Mr Majaliwa also instructed the Tanzania Trade Development Authority to intensify efforts in securing both domestic and international markets for exhibitors, in a bid to boost foreign exchange earnings. 

Source: The Citizen

Tanzania / India

Tanzania, India target USD10-billion trade

Tanzania and India have renewed their commitment to strengthening economic relations, setting a target to grow bilateral trade from the current USD7-billion to USD10-billion in the near future. The ambitious goal was announced during the Tanzania – India Business Forum held in Dar es Salaam, which brought together senior government officials, investors, and business leaders from both countries. Deputy Minister for Industry and Trade Exaud Kigahe said the government is undertaking comprehensive economic reforms and implementing strategic initiatives to attract investment and boost trade volumes. “Our vision is to double our trade volume with India,” said Mr Kigahe. “This is not just an ambition. It is a concrete plan supported by policy reforms and sectoral commitment.” He cited measures already undertaken, including the scrapping of 378 nuisance taxes, streamlining regulatory processes, and the establishment of the Tanzania Special Economic Zones Authority to oversee and facilitate investment. “These reforms are transforming the business environment and positioning Tanzania as an increasingly attractive destination for foreign investors,” he noted.

Source: The Citizen

Uganda

Will free zones help turn Uganda into an export hub?

Uganda has been recording good growth in export earnings, recording an annual average of USD4.55-billion over the last 10 years. Data from Bank of Uganda indicates that in the 10 years to 2024, export earnings more than tripled from USD2.66-billion in 2015 to USD8.66-billion, supported by growth in manufactured exports from USD248.52-million to USD391.55-million in the period. However, the pace of growth remains low compared to import outflows, which in the 10 years to 2024, have more than doubled from USD6.05-billion in 2015 to USD14-billion. The comparisons, therefore, point to one thing – government must restrategise to cut back on the import bill by increasing local production and investing in value addition. In the last five years, government has sold import substitution as a key solution. And to implement this, government has put in place measures and institutions such as the recently modified Uganda Free Zones and Export Promotions Authority (UFZEPA), which sets the stage for value-added production. UFZEPA was created out of the merger of the Uganda Free Zones Authority and the Uganda Export Promotions Board under the 2024 Policy on Rationalization of Government Agencies and Public Expenditure. The merger combines the mandates of regulating free zones and promoting exports, two pillars essential for stimulating sustainable industrial growth and transforming Uganda into an export hub. 

Source: Monitor