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issue 605 | 03 Aug 2025

World

Caribbean seeks stronger Africa trade as traditional routes waver

Caribbean nations are looking to "decisively" broaden opportunities for trade with Africa, the secretary-general of the regional bloc said recently, in view of looming uncertainty with its more traditional trade partners. Stronger trade ties with Africa would signal a key economic shift in a region which relies heavily on trade with the United States (US), Canada and Europe, in a period of growing protectionism. In April, Washington imposed a baseline 10% tariff on nearly all its trade partners. It has been levying its power to influence domestic Caribbean policies on issues such as Cuban medical services and citizen-by-investment programmes. "We must decisively open the door to greater trade between our regions," Caribbean Community (CARICOM) Secretary-General Carla Barnett said at the opening of the AfriCaribbean Trade and Investment Forum in Grenada. "CARICOM trade with the continent must grow beyond the current levels of less than 3% of our overall trade, particularly with the uncertainty that currently looms over trade with traditional partners." The US is CARICOM's largest trading partner, according to latest data from the Observatory of Economic Complexity. 

Source: Reuters

Africa

Gold rush by African central banks carries liquidity and price risks, says Fitch’s BMI unit

Sub-Saharan African central banks that have added gold to their reserves in recent years could face price and liquidity crises if the value of the precious metal slides, BMI, a unit of Fitch Group has said. Ghana, Tanzania and Nigeria have been buying gold domestically to beef up their reserves, BMI said, a move accelerated by this year’s broader market volatility stoked by the United States (US) trade tariffs and other geopolitical risks. Policymakers in Kenya and Uganda are exploring a move into gold, Rwanda and Namibia have taken active steps towards adding the metal into their reserves, while Burkina Faso has indicated it will build up its stockpile and Zimbabwe has said its new Zimbabwe Gold (ZWG) currency is backed by gold reserves, BMI said. “Gold is increasingly being used by sub-Saharan African markets as a strategic store of value,” said Orson Gard, Senior sub-Saharan Africa Analyst at BMI, during an investor presentation. “Any sudden drop in global gold prices would have significant implications for those markets in sub-Saharan Africa which have rapidly increased gold as a share of their total reserves portfolio,” Gard said. A gradual price decline over the medium-term could also have a negative impact for countries that started buying gold around its recent peak, he added. 

Source: Business Day

Angola

Boosting Growth with Inclusive Financial Development: Crucial to unlock Angola’s poverty alleviation efforts

Angola recorded the highest economic expansion since 2014, with real GDP growth reaching 4.4% in 2024. According to the latest edition of the Angola Economic Update (AEU) published by the World Bank Group recently, titled Boosting Growth with Inclusive Financial Development, this growth was driven by the oil sector’s recovery and diamond extraction, along with strong expansion in commerce and fishing. The report highlights that despite a rebound in economic activity in 2024, Angola still struggles with the lasting impacts of prolonged stagnation. From 2016 to 2020, the economy contracted by approximately 10.4%, averaging a 2.1% annual decline. This sluggish growth stemmed from structural challenges and heavy dependence on the oil sector, making it susceptible to global price fluctuations. Real GDP growth is projected at an average of 2.9% from 2025 to 2027, but this is unlikely to significantly improve living standards. Increased global uncertainty, including falling oil prices, emphasises the need for Angola to diversify its economy and reduce reliance on oil.

Source: World Bank

Burkina Faso

2025 Country Focus Report: Burkina Faso urged to make better use of national resources to finance its development

The African Development Bank's (AfDB) 2025 Country Focus Report for Burkina Faso, the national version of the African Economic Outlook, was officially launched on 18 July 2025 in Ouagadougou. The ceremony was chaired by Souleymane Nabolé, Technical Advisor, representing the Minister of Economy and Finance, in the presence of Daniel Ndoye, AfDB Group’s Country Manager for Burkina Faso. Run virtually, the session brought together more than 80 participants from the public administration, technical and financial partners, the research community and the private sector, as well as AfDB executives. In a video message, Professor Kevin Urama, Chief Economist and Vice President for Economic Governance and Knowledge Management at the AfDB, reiterated that country focus reports are designed to inform national policies and foster dialogue between states and their partners. The 2025 edition of the report focuses on the theme Making Burkina Faso's Capital Work Better for its Development. It analyses the country's recent macroeconomic performance amid a complex security and humanitarian crisis, while presenting medium-term prospects and strategic directions to accelerate economic transformation.

Source: AfDB

Cameroon

2025 Country Report on Cameroon: the AfDB urges the country to strengthen capital mobilisation for sustainable growth

The African Development Bank (AfDB) Group officially launched its 2025 Country Report on Cameroon in Yaoundé on 22 July 2025. The launch ceremony featured frank and wide-ranging discussions on the country's economic challenges. Country reports form part of the AfDB’s African Economic Outlook (AEO) 2025 which provides an annual assessment of the economic performance and outlook of the continent’s 54 countries by examining growth trends, socio-economic challenges, and development progress. The 2025 AEO report was released last May during the AfDB Group’s Annual Meetings held in Abidjan, Côte d’Ivoire, under the theme Maximizing Africa’s Capital for Sustainable Development. Making Cameroon's Capital Work Better for its Development, highlights the levers that will enable the country to strengthen domestic resource mobilisation and boost inclusive and resilient growth. It calls on the government, private sector, civil society, and development and financial partners to collectively be the drivers of the country's structural transformation. The ceremony was attended by members of the Cameroonian Government, notably representatives from the Ministry of the Economy, Planning and Regional Development, the Ministry of Finance, the Ministry of Trade as well as the business sector. 

Source: AfDB

Cameroon

IMF Executive Board concludes eighth reviews under Cameroon’s ECF/EFF arrangements and third review under the RSF arrangement

The Executive Board of the International Monetary Fund (IMF) has concluded the eighth reviews under Cameroon’s Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) arrangements. The completion of the ECF/EFF reviews allows for an immediate disbursement of SDR55.2-million (about USD75.7-million), bringing total disbursements under the arrangements to SDR593.4-million (USD793.8-million). The executive board also completed the third review under the Resilience and Sustainability Facility (RSF) arrangement. Completion of this review makes available SDR51.75-million (USD71-million), with disbursements to date totalling SDR120.75-million (USD162.3-million). In completing the eighth ECF/EFF reviews, the executive board also approved the authorities’ request for waivers of nonobservance of the performance criteria on the floor on the non-oil primary fiscal balance at end-December 2024 and the ceiling on the net domestic financing of the central government excluding IMF financing at end-December 2024 on the basis of corrective actions, and the continuous ceiling on Treasury advances without a budget allocation on the basis of the minor nature of the deviation. 

Source: IMF

Chad

IMF Executive Board approves a new 48-month ECF arrangement for Chad

The Executive Board of the International Monetary Fund (IMF) has approved a 48-month Extended Credit Facility (ECF) arrangement for Chad, in the amount of SDR455.65-million (about USD625-million, or 325% of the country's quota), to support the authorities’ economic and structural reforms, and address the country’s protracted balance of payment needs. The executive board’s decision allows for an immediate first disbursement of SDR28.04-million (about USD38.5-million). The new arrangement supports the objectives of the authorities’ National Development Plan 2025-2030 across three main pillars. First, it will aim at ensuring sustainable fiscal policy and creating fiscal space to finance key development projects. Second, the programme aims to support the authorities’ objectives of inclusion, notably through an increase in targeted social spending to lift development outcomes. Third, the programme will contribute to improvements in governance and business climate to create the conditions for more balanced and stronger economic growth.

Source: IMF

Equatorial Guinea

Afreximbank mandated as advisor on USD4.5-billion EG-27 LNG project in Equatorial Guinea

African Export-Import Bank’s (Afreximbank) Advisory and Capital Markets (ACMA) has been mandated as the financial advisor to raise capital for the USD4.5-billion EG-27 liquefied natural gas (LNG) project being developed by Sociedad Nacional de Gas de Guinea Ecuatorial (Sonagas), Equatorial Guinea’s national gas company. Under the terms of the advisory mandate, ACMA will leverage its financial structuring expertise and broad investor network to mobilise capital for the development of the EG-27 project which represents the first phase in the development of Equatorial Guinea’s EBANO Field which holds 3.8 trillion cubic feet of proven gas reserves. The project is expected to receive 360 million standard cubic feet per day of feed gas and to produce approximately 7 055 tons per day of LNG, or 2.4 million tonnes per annum, over a 20-year period. Seen as a landmark initiative, the project has been strategically designed to monetise Equatorial Guinea’s natural gas resources and to promote industrialisation, with the goal of significantly enhancing the country’s role in global energy markets while contributing to regional energy security.

Source: Afreximbank

Equatorial Guinea

IMF Executive Board concludes 2025 Article IV consultation with Equatorial Guinea and IMF management approves the first and second reviews under the SMP for Equatorial Guinea

The Executive Board of the International Monetary Fund (IMF) completed the Article IV consultation for Equatorial Guinea. IMF management approved the completion of the first and second reviews and a 12-month extension of the Staff Monitored Program (SMP) for Equatorial Guinea on 25 June 2025. The authorities have consented to the publication of the Staff Report prepared for this consultation. Equatorial Guinea registered a mild economic recovery in 2024, growing by 0.9% following a strong contraction in 2023. However, non-hydrocarbon GDP growth slowed in 2024 to 1.3%, and the economy is expected to grow only modestly in the medium term as hydrocarbon production declines. Inflationary pressures have persisted, with inflation increasing from 2.5% in 2023 to 3.4% in 2024. The banking sector showed clear signs of improvement in 2024 but remains undercapitalised. The average capital adequacy ratio of the system is marginally below the regulatory minimum, but substantially higher than at the end of 2022.

Source: IMF

Ethiopia / Italy

Ethiopia, Italy sign agreement to partner in agriculture sector

The Governments of Ethiopia and Italy have signed a partnership agreement in the agricultural sector. Ethiopia’s Minister of Agriculture, Girma Amente, and Italian counterpart Francesco Lollobrigida signed the agreement on the margins of the United Nations Food System Summit in Addis Ababa. The agreement is meant to further strengthen the existing cooperation between the two countries and gives focus on modernising the coffee development value chain, it was learned. Minister Girma stated during the event that the agreement offers a significant opportunity to harness Italy's vast potential among European nations in the modernisation of the agricultural sector. Italian Minister of Agriculture, Francesco Lollobrigida, for his part, said the deal aims to transfer agricultural technologies.  

Source: Ethiopian News Agency

The Gambia

Exploring The Gambia’s road to 90% electrification

The Gambia is rapidly advancing its electrification strategy with a suite of large-scale infrastructure projects focused on grid expansion, rural access and renewable energy integration. With a national target of achieving 90% electricity access by the end of 2025, the government – supported by multilateral partners including the World Bank, European Union and the Economic Community of West Africa States institutions – is rolling out climate-resilient power systems and transmission upgrades that are transforming the country’s energy landscape. Setting a benchmark for regional energy integration, The Gambia’s ambitious grid expansion, rural electrification and renewable energy drive will take centre stage at the upcoming MSGBC [Mauritania, Senegal, The Gambia, Guinea-Bissau and Guinea] Oil, Gas & Power 2025 conference and exhibition in Dakar this December. During this year’s event, stakeholders will unite to accelerate cross-border collaboration and inclusive, sustainable growth across the MSGBC region. 

Source: Energy Capital & Power

Ghana

Ghana unveils details of sweeping mining law reforms

Ghana plans to shorten mining licence durations and mandate direct revenue-sharing with local communities in its most sweeping mining law reforms in nearly two decades, details of which were announced by a government minister recently. The planned overhaul reflects a broader trend across West Africa, where governments are rewriting mining codes to capture more value from rising commodity prices. Ghanaian Lands and Natural Resources Minister Emmanuel Armah Kofi Buah said the changes, which include scrapping automatic renewal of some licences, will apply only to future contracts, a departure from the stance in Mali and Burkina Faso where military-led governments have applied reforms retroactively, “In Ghana, we [do not] do retrospective laws,” Buah said at a presentation in the capital, Accra. “Existing agreements are sanctified and will be respected.” He added that the overhaul of the Minerals and Mining Act and Mining Policy was 85% complete after extensive stakeholder consultations. Ghana, Africa’s top gold producer, expects output to rise to 5.1-million ounces this year. 

Source: Business Day

Kenya

A summary of key implications of the Finance Act 2025 amendments

Kenya’s Finance Act, 2025 (the Act), which was assented to on 27 June 2025, ushers in a raft of amendments affecting individuals and businesses alike. The changes, most of which take effect from 1 July 2025 with a few slated for 1 January 2026, are designed to streamline tax administration, enhance revenue collection, and bring Kenya’s tax regime in line with international standards. This article summarises some of the key changes introduced by the Act.

Source: ENS

Kenya / Uganda

Kenya, Uganda ink eight new trade deals to boost bilateral relations

Kenya and Uganda have signed eight additional bilateral memoranda of understanding (MoUs), building on the 17 agreements already in place, to strengthen legal and institutional cooperation across strategic sectors. The signing was witnessed by visiting Ugandan President Yoweri Museveni and his Kenyan counterpart William Ruto in Nairobi, the capital of Kenya. President Ruto told journalists that the agreement on partnership between the Kenya National Bureau of Statistics and the Uganda National Bureau of Statistics was signed to enhance the scientific and technical exchange of ideas. "We reaffirmed our united stance on closer collaboration in key sectors such as infrastructure, trade, energy, security, and regional integration," said President Ruto. "These agreements signify our joint resolve to turn our cooperation into practical results that will directly uplift the lives of both our peoples." For his part, President Museveni underlined that modern economies are driven by the production of goods and services, urging young people to focus on harnessing Africa's vast market potential.

Source: Xinhua

Mali

Gold producers sign on to Mali’s Mining Code

Bamako – London-listed Endeavour Mining and two other gold producers have agreed to migrate to Mali’s new Mining Code, government officials said. The Code, which raises taxes and seeks to hand over big stakes in mining assets to the state, sparked bitter disputes with mining companies after it was implemented in August 2023, helping drive Mali's gold output down 23% last year to 51 metric tons. Finance Minister Alousséni Sanou and the Minister of Mines announced the new memorandum of understanding with Somika – which is 80%-owned by Endeavour and 20% by the Malian state –  Faboula Gold and Bagama Mining on state television recently. No terms of the deals were disclosed. The three companies account for only a fraction of Mali’s gold output, with Faboula and Bagama launching output in 2021 with 500 kg each and the Kalana project operated by Somika yet to start production. All three have been largely inactive since the Mining Code was adopted. Somika Director Abdoul Aziz said construction of the company’s mine “will begin six months after the signing of the agreement, and production will start 18 months later.” 

Source: Business Day

Niger

AfDB extends loan of over USD144-million to enhance energy access and economic competitiveness

The Board of Directors of the African Development Bank (AfDB) Group has approved a loan of USD144.27-million to Niger for the first phase of a programme that will reform energy sector laws and address the country's critical power shortage. Niger’s Energy Sector Governance and Competitiveness Support Program is expected to address governance challenges by strengthening public financial management systems, particularly tax revenue mobilisation and tax revenue control system. It will also support the clearance of domestic arrears, public-private dialogue, and the adoption of an industrial and commercial policy to bolster support for Nigerien businesses. "This programme represents our commitment to supporting Niger's economic recovery and energy independence," said AfDB Director General for West Africa Lamin Barrow. 

Source: AfDB

Sierra Leone

Sierra Leone and AfDB target USD90-billion in annual illicit financial flows

A four-day high-level seminar has concluded with concrete recommendations to combat the estimated USD90-billion that Africa loses annually to illicit financial flows, as the African Development Bank (AfDB) Group and Sierra Leone Government intensify efforts to strengthen natural resource governance. More than 70 stakeholders from government, civil society, private sector, and international organisations gathered at The Place Resort in Tokeh under the theme Harnessing Africa's Wealth: Curbing Illicit Financial Flows for Resilient Growth and Development. Illicit financial flows are among Africa's most pressing economic challenges. The dialogue produced specific policy recommendations, including establishing national communities of practice, implementing institutional reforms, and enhancing transparency in resource-backed lending (RBL). Participants agreed that RBLs should be treated as "an option of last resort" and used only with maximum transparency and for investments that directly contribute to repayment capacity. "This initiative can help us improve revenue from natural resources by blocking leakages through illegal natural resource trade and improved management of [RBL]," said Sierra Leone’s Finance Minister Sheku Ahmed Fantamadi Bangura.

Source: AfDB

Tanzania

Tanzania secures additional funding to boost green and inclusive growth

The African Development Bank (AfDB) Group has approved supplementary financing to support Tanzania’s ongoing economic reform programme. The new funding includes a USD135.61-million loan from the AfDB and an additional USD20.52-million from the African Development Fund. This fresh injection of support marks the third and final phase of the Economic Competitiveness and Social Inclusion Programme, a multi-year initiative aligned with Tanzania’s national development strategy. The programme focuses on three core goals improving fiscal management, strengthening the private sector, and advancing social inclusion. Previous phases have already delivered strong results, including reducing the fiscal deficit to 3.3% of GDP in FY2023/24; enhancing tax collection and public spending systems; improving the business climate for micro, small, and medium-sized enterprises and green industries; and expanding social protection for women, youth, and vulnerable groups. The latest financing will deepen these reforms. It aims to raise domestic revenues, attract private investment by improving governance and the business environment, and promote climate-smart industrial growth and small and medium-sized enterprises development.

Source: AfDB

Tanzania / Rwanda

Tanzania, Rwanda deepen ties with new transport and trade commitments

Tanzania and Rwanda have taken significant steps to deepen their bilateral cooperation, with renewed commitments in air connectivity, railway development, and the promotion of Kiswahili. The agreements were signed by Rwanda's Foreign Affairs and Cooperation Minister Olivier Nduhungirehe and Tanzanian counterpart Mahmoud Thabit Kombo during the 16th Joint Permanent Commission (JPC) in Kigali. The ministers underscored the JPC’s role in strengthening bilateral dialogue and trade cooperation, with a planned liaison office in Kigali expected to streamline port services for Rwandan importers and exporters. Nduhungirehe commended Tanzania’s role in boosting Rwanda’s economy through enhanced operations at the Dar es Salaam port, which handles over 70% of Rwanda’s international trade, according to Xinhua. Tanzania’s Minister of Foreign Affairs and East African Cooperation, Mahmoud Thabit Kombo, stated that Rwanda is among Tanzania’s top air travel partners, alongside Kenya. He noted that RwandAir operates daily flights between the two countries and described this level of connectivity as very encouraging, emphasising its importance in strengthening bilateral ties. 

Source: Business Insider Africa

Uganda

Uganda launches Nationally Determined Contribution 3.0 process, reaffirming commitment to climate action and ambition

The Government of Uganda, with support from the African Development Bank (AfDB), has launched the stocktake of Uganda’s updated Nationally Determined Contribution (NDC) and initiated the commencement of the NDC 3.0 development process. The launch, held at an inception workshop at the Sheraton Hotel in Kampala on 15 July 2025, represents a major step in Uganda’s climate action agenda, aligning national efforts with the outcomes of the first Global Stocktake under the Paris Agreement. It aims to strengthen Uganda’s climate ambition while addressing key national priorities. A cross-section of stakeholders participated in the workshop, including senior government officials, development partners, civil society organisations, and members of academia. The sessions featured an overview of Uganda’s NDC 3.0 roadmap, outlining the next steps assessing the implementation of the updated 2021 NDC, identifying emerging priorities, refining targets, costing new commitments, and preparing bankable investment plans to support implementation.

Source: AfDB

Zambia

IMF Executive Board concludes 2025 Article IV consultation and completes fifth review under the ECF with Zambia

The Executive Board of the International Monetary Fund (IMF) completed the Article IV consultation and fifth review of Zambia’s 38-month Extended Credit Facility (ECF) arrangement, approved on 31 August 2022, and financing assurances review for Zambia. The completion of this review allows for an immediate disbursement of SDR139.88-million (about USD184-million), bringing Zambia’s total disbursement under the ECF-supported programme to SDR1132.74-million (about USD1.55-billion). The ECF arrangement seeks to entrench macroeconomic stability, restore debt and fiscal sustainability, enhance public governance, and foster inclusive growth to improve the livelihood of the Zambian people. Programme performance has been broadly satisfactory, with all end-December 2024 quantitative targets and most end-March 2025 indicative targets met. Three end-March 2025 indicative targets – on non-mining tax revenues, arrears clearance, and reserve accumulation – were missed. Six out of 14 structural benchmarks (SBs) for this review were met, four were completed with delays, and the remainder four SBs on debt office procedures, along with financial sector and governance reforms, were proposed to be reset to the next review. The recent adoption of an amended 2025 budget in line with the programme commitments satisfies the prior action set for this review. The executive board also granted a waiver for nonobservance of the continuous performance criterion on contracting non-concessional external debt in the fourth quarter of 2024.

Source: IMF

Zimbabwe

Foreign investor appetite for Zimbabwe shares increases in second quarter

Increased foreign investor appetite for Zimbabwe's stocks helped lift market turnover on the Southern African nation's main bourse in the second quarter of 2025, according to its quarterly newsletter, but overall market value still fell. Erratic economic policy, high inflation, and currency instability have for years discouraged foreign investment in Zimbabwe. But economic fundamentals are improving and a new gold-backed local currency – the Zimbabwe Gold (ZWG) – has largely held its value this year. Foreign participation on the Zimbabwe Stock Exchange (ZSE) rose to 26.53% in the second quarter from 15.39% in the previous quarter, the newsletter published recently said. Foreign trades jumped 153.94% to ZWG743.6-million (USD27.7-million), up from ZWG292.8-million in Q1. In comparison, foreign investors accounted for over 40% of activity on the ZSE in the early 2010s. Total market turnover on the ZSE increased 53.14% to ZWG1.49-billion in the quarter, the newsletter said. The total market value, however, fell 3.08% to ZWG62.64-billion, while the ZSE All Share Index declined 3.91% to close the quarter at 197.23 points.

Source: Reuters