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issue 623 | 07 Dec 2025

World

Developing countries’ debt outflows hit 50-year high during 2022-2024

Developing countries paid out USD741-billion more in principal and interest on their external debt than they received in new financing between 2022 and 2024 – the largest gap in at least 50 years, according to the World Bank’s latest International Debt Reportreleased on 3 December 2025. Still, most countries gained some breathing room on their debt last year as interest rates peaked and bond markets opened up again. That enabled many countries to stave off the risk of default by restructuring their debt. In all, developing countries restructured USD90-billion in external debt in 2024, more than any time since 2010. Bond investors, meanwhile, pumped in USD80-billion more in new financing than they received in principal repayments and interest. This helped several complete multi-billion-dollar bond issuances. However, the funds came at a high price – interest rates hovered around 10%, about double those before 2020. Global financial conditions might be improving, but developing countries should not deceive themselves: they are not out of danger,” said Indermit Gill, the World Bank Group’s Chief Economist and Senior Vice President for Development Economics. “Their debt build-up is continuing, sometimes in new and pernicious ways. Policymakers everywhere should make the most of the breathing room that exists today to put their fiscal houses in order – instead of rushing back into external debt markets.”

Source: World Bank

Africa

Africa Investment Forum secures USD15.3-billion, 39 bankable projects at 2025 Rabat gathering

The 2025 Africa Investment Forum (AIF) Market Days wrapped up recently in Rabat, Morocco, with USD15.3-billion in investment interest covering 39 bankable projects, underscoring a growing global appetite for African opportunities. African Development Bank (AfDB) Group President Sidi Ould Tah announced the outcome at the close of the three-day event. “The conclusion of the [AIF’s] 2025 Market Days marks a new beginning, full of optimism, for the future of our continent,” he said. Under the theme, Bridging the Gap: Mobilising Private Capital to Unlock Africa’s Full Potential, this year’s edition drew financial backing from 32 global private-sector organisations – double the number in 2024 – highlighting the Forum’s rising profile as a premier marketplace for investment in Africa. Over three days, more than 2 000 delegates, representing private capital providers, international investment and commercial banks, multilateral development finance institutions, entrepreneurs and government representatives explored project structuring, mobilising capital and women's access to finance. President Ould Tah said investors responded strongly to the projects tabled in the Forum’s boardrooms because they were supported by social and environmental impact studies and robust financial models. About two-thirds of the proposed transactions targeted the energy and transport sectors.

Source: AfDB

Africa

Africa's Development Dynamics 2025: Infrastructure, Growth and Transformation

Infrastructure can be the engine that powers Africa’s economic transformation and helps it achieve the ambitions of Agenda 2063. By increasing annual investments from USD83-billion to USD155-billion, the continent could double its total GDP by 2040. To achieve this in the face of pervasive financial constraints, policymakers should prioritise the highest-return infrastructure projects, foster stronger public-private partnerships, gather investment data, and better manage social and ecological risks. Africa could double its GDP before 2040 by raising annual infrastructure investments to USD155-billion (representing 5.6% of its GDP in 2024). This could accelerate growth by 4.5 percentage points per year, enough to exceed the African Union’s Agenda 2063 objective of 7% growth and achieve the same level of transformation as the best-performing economies around the world with otherwise similar profiles. As a proportion of their wealth, African economies would need to invest on average three times more than Latin America and the Caribbean (LAC) and five times more than developing Asia. But the economic returns for Africa would be three times higher than for the LAC region, and nine times higher than for developing Asia.

Source: Organisation for Economic Co-operation and Development

Africa

Africa’s pharma cargo boom faces capacity crunch

Africa’s pharmaceutical air cargo sector is entering a period of rapid expansion, driven by rising healthcare needs, increased clinical trial activity and growing investment. However, industry experts warn that the continent remains severely underserved, with cold chain capacity and regulatory frameworks failing to keep pace with rising demand. According to the International Air Transport Association’s (IATA) October 2025 Air Cargo Market Analysis, African airlines recorded a 16.6% year-on-year increase in overall air-cargo demand – the strongest growth of any global region. However, growth patterns vary significantly across the continent. Pharmaceutical air cargo is increasing steadily, driven by rising demand for medicines, expanding cold chain requirements and more local manufacturing, which is creating additional demand for raw materials and active pharmaceutical ingredients, says DHL Global Forwarding. The company reported strong demand in Kenya, Ethiopia, Ghana and Nigeria, supported by improved access to landlocked markets through established regional hubs. Nairobi has emerged as Africa’s busiest cargo airport, followed by Cairo and Johannesburg, with Addis Ababa, Casablanca and Lagos also playing key roles.

Source: Southern Africa’s freight news

Africa

African Development Fund commits USD14-million grant to scaling up climate resilience across the Sahel

The Board of Directors of the African Development Fund has approved a grant of USD14.64-million to support Project 2 of the Programme to Strengthen Resilience to Food and Nutrition Insecurity in the Sahel (P2-P2RS) in Abidjan on 21 November 2025. The additional financing is provided through the Climate Action Window, a climate-focused funding mechanism of the African Development Fund, the concessional lending window of the African Development Bank (AfDB) Group. The grant aims to strengthen the adaptation and resilience capacities of communities across the Sahel as they face increasingly severe climate extremes. The project adopts a dual approach: scaling up the “climate-smart villages” model around hydro-agricultural infrastructure, and improving access to and use of climate information for decision-making. The new funding will support the regional seed system by disseminating resilient, high-yielding improved seed varieties. Planned activities include updating the Regional Catalogue of Species and Varieties; creating a business-to-business networking portal; and strengthening seed multiplication capacities of national agricultural research systems and seed companies to ensure availability in climate-smart villages. The project will also support women’s and youth empowerment through targeted capacity-building.

Source: AfDB

Africa

COP30: AfDB Group backs increased access to climate finance for electricity grids and energy storage

The African Development Bank (AfDB) Group and several other national and international institutions have endorsed a common framework to increase the access to climate finance for grid investments. The decision emerged at a ministerial panel session held on 14 November 2025 at COP30 in Belém, Brazil. The session, titled: Accelerating Action on Grids and Storage: Planning, Financing, Principles and Policy Solutions, was organised by the International Renewable Energy Agency, the Global Coalition for Energy Planning, the Utilities for Net Zero Alliance (UNEZA), the Sustainable Business COP, and the Green Grids Initiative. Joining the Bank Group to endorse the newly-developed set of six “climate finance principles for grids” were the Inter-American Development Bank, British International Investment, the East African Development Bank, Climate Bonds Initiative, the Institutional Investors Group on Climate Change, the Asia Investor Group on Climate Change, the Global Renewables Alliance, GridWorks, UNEZA, and the Government of the United Kingdom.

Source: AfDB

Africa

ECA and Google deepen strategic collaboration: launch of the Regional Data Commons for Africa

The United Nations Economic Commission for Africa (ECA) and Google convened on 17 November, for a high-level bilateral review marking two years of progress under their strategic partnership to accelerate Africa’s digital transformation, strengthen public data systems, and expand artificial intelligence (AI) readiness across the continent. A central highlight of a recent dialogue led by the ECA Executive Secretary, Ambassador Claver Gatete, and Google Vice President for Government Affairs & Public Policy in Emerging Markets, Doron Avni, was the start of the project to build a Regional Data Commons for Africa, a flagship initiative jointly led by ECA and the United Nations Department of Economic and Social Affairs. Backed by a Google.org USD750 000 contribution and the integration of Google’s Data Commons technology, the initiative will establish Africa’s interoperable and AI-enabled public data infrastructure by integrating high-impact datasets from across the continent.

Source: ECA

Africa

The AfDB Group calls for effective collaboration and sustained coordination for the successful implementation of NDCs

The African Development Bank (AfDB) Group has called for stronger collaboration and sustained coordination among global climate institutions to help developing countries deliver on their Nationally Determined Contributions (NDCs). Speaking at the 5th Partners’ Roundtable on NDC Implementation on the sidelines of COP30 in Belém, Brazil, Dr Al Hamndou Dorsouma, Manager for Climate Change and Green Growth at the AfDB Group, noted that African countries had demonstrated significant ambition but lacked the resources required to implement their commitments. “Africa’s challenge is not ambition,” he said. “What Africa needs is ever-stronger collaboration and reinforced coordination among institutions providing financial and technical assistance in support of NDCs across the continent.” The roundtable brought together development finance institutions, global climate funds, and the United Nations agencies to review financing and technical assistance pledges, assess private sector engagement, and identify ways to ensure climate finance reaches the most vulnerable communities.

Source: AfDB

Africa

WCO discusses intra-African trade at the Abuja Conference for Customs Partnership

The Secretary General of the World Customs Organization (WCO), Mr Ian Saunders, participated in the Conference for Customs Partnership for African Cooperation in Trade, held in Abuja, Nigeria, from 17 to 19 November 2025, under the theme Breaking Barriers, Building Bridges. Convened by the Nigeria Customs Service, with the support of the WCO, the African Continental Free Trade Area (AfCFTA) Secretariat and the African Export-Import Bank, the event brought together some 500 participants, among whom were Customs leaders and representatives from the private and public sectors, non-governmental organisations and other stakeholders. The Conference aimed to reflect on the priorities and needs associated with the implementation of the AfCFTA, enhance collaboration with the AfCFTA Secretariat, improve coordination among Customs authorities, discuss trade bottlenecks and structural barriers, and align Customs operations with the continental trade goals. In the opening, Mr Bashir Adewale Adeniyi, Comptroller-General, Nigeria Customs Service and WCO Council Chairperson, emphasised Customs’ role as key holders of trade data and essential facilitators of intra-African trade, while highlighting the need for regional ownership, strong institutions, and regulatory coordination.

Source: WCO

Cabo Verde

AfDB Group approves EUR17.7-million to advance public sector digitisation

The Board of Directors of the African Development Bank (AfDB) Group has approved a EUR17.71-million loan to support the second phase of Cabo Verde’s e-Governance and Public Financial Management Reform Programme. The Bank’s Board of Directors approved the financing recently, continuing support that began last year as the island nation seeks to leverage technology for economic growth and administrative efficiency. “The aim of this budgetary support, building on the assistance provided last year, is to stimulate economic growth through digitisation and private-sector competitiveness, while advancing e-governance reforms to modernise public administration and consolidate public finances,” said Abdoulaye Coulibaly, Director of the Governance and Economic Reforms Department at the Bank. The first component of the programme will advance ongoing digitisation reforms to strengthen private-sector competitiveness. Key measures include the introduction of e-Justice to digitise judicial processes, and the launch of a call for proposals to attract private operators to the country’s technology park under the ‘digital nomads’ programme. Admission criteria will be developed to facilitate the establishment of digital nomads and high-growth technology firms.

Source: AfDB

Côte d’Ivoire

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

The Executive Board of the International Monetary Fund (IMF) completed the fifth reviews of the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements and the fourth 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 USD3.5-billion) has substantially reduced imbalances and preserved Côte d’Ivoire’s moderate risk of debt distress rating. In parallel, important reforms under the RSF arrangement, amounting to 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. Following the October 2025 presidential elections, the authorities’ continued commitment to reforms under both programmes should support Côte d’Ivoire’s transformation toward upper middle-income status over the medium-term. Programme implementation has been strong: all end-June performance criteria were met, and progress on structural benchmarks has been satisfactory. Moreover, all reform measures under the RSF arrangement for this review have been implemented. The successful completion of these reviews enables an immediate disbursement of about USD839.7-million under the multi-year Fund arrangements.

Source: IMF

Eritrea

AfDB launches new strategy to boost Eritrea’s growth and resilience

The African Development Bank (AfDB) has released its Interim Country Strategy Paper (I-CSP) 2025–2027 for Eritrea, outlining a focused plan to strengthen infrastructure, expand economic opportunities and increase resilience across the country. Eritrea is navigating modest economic growth while confronting development challenges, including low productivity, climate pressures, limited infrastructure and a small private sector. The new strategy responds to these needs with a clear objective: laying the foundations for economic diversification and structural transformation. The I-CSP centres on one overarching priority: developing quality, sustainable infrastructure to support agricultural value chains, drive diversification and stimulate higher value-added production. To achieve this, the Bank will deepen support in three core areas: energy, water and sanitation, and economic and financial governance. In the energy sector, the Bank will partner with Eritrea to expand reliable and affordable electricity, with an emphasis on renewable power solutions.

Source: AfDB

Namibia

AfDB approves landmark USD1.78-billion strategy to support transformation of Namibia's economy and create jobs

The African Development Bank (AfDB) Group's Board of Directors has approved a Country Strategy Paper for Namibia committing USD1.78-billion to support economic transformation and inclusive growth in the 2025-2030 period. The financing is expected to pave the way for job creation and economic diversification while also addressing key challenges facing the world's most unequal countries: youth unemployment exceeds 40%, and per capita income has fallen from USD5 942 in 2012 to USD4 240 in 2024. “This strategy marks a pivotal moment for Namibia's development,” said Moono Mupotola, the Bank Group's Deputy Director General for Southern Africa and Country Manager for Namibia. “By focusing on strategic infrastructure and human capital development, we are laying the foundation for inclusive growth that will benefit all Namibians, particularly the young.” The strategy focuses on two priorities. The first is investment in transport, energy, and water infrastructure to reduce business costs, enhance productivity, and establish Namibia as a regional logistics hub. These investments will strengthen trade facilitation under the African Continental Free Trade Area, enhance energy security through renewables, and expand rural access to clean water and sanitation. 

Source: AfDB

Rwanda

IMF Executive Board concludes the 2025 Article IV consultation and completes the sixth review under the Policy Coordination Instrument with Rwanda

On 4 December 2025, the Executive Board of the International Monetary Fund (IMF) concluded the 2025 Article IV consultation with Rwanda and completed the sixth review of Rwanda’s performance under the Policy Coordination Instrument and considered and endorsed the staff appraisal without a meeting on a lapse-of-time basis. The authorities have consented to the publication of the Staff Report prepared for the consultation and the review. Despite repeated shocks, Rwanda's economy has remained strong and resilient. Real GDP grew by 7.2% in 2024 and the first half of 2025 – based on rebased GDP series – driven by robust activity in the services and construction sectors, and coffee exports. Inflation remained within the National Bank of Rwanda’s 2–8% target band, despite pressures from recently implemented tax measures. The current account deficit widened in the first half of 2025 due to strong consumer and capital goods imports, but international reserves remained adequate at 4.8 months of imports as of end-June 2025. Going forward, Rwanda’s policy agenda should focus on sustaining macroeconomic stability and rebuilding buffers. Continued fiscal consolidation – supported by stronger revenue mobilisation, spending efficiency, and improved state-owned enterprise risk management – is essential to maintain debt sustainability and fund priority investments. A proactive, data-driven monetary policy and greater exchange rate flexibility will be critical to contain inflation and better absorb external shocks.

Source: IMF

South Sudan / Ethiopia / Djibouti

The board of directors approve USD214.4-million for Phase II of South Sudan-Ethiopia-Djibouti transport corridor

The Board of Directors of the African Development Bank (AfDB) Group has approved USD214.47-million in financing to launch the second phase of the South Sudan-Ethiopia-Djibouti Transport Corridor Project. The package, drawn from the AfDB Group's concessional window, comprises several grants: USD181.5-million for Ethiopia, USD29.71-million for Djibouti, and USD1.96-million for South Sudan, along with an additional USD1.30-million for South Sudan from the Bank Group’s Transition Support Facility for countries facing fragility. Phase II of the project will deliver major infrastructure improvements across the three countries. In Ethiopia, it will involve the construction of a 67-km expressway and deployment of intelligent transport systems. In Djibouti, works will focus on upgrading the 18-km Dikhil-Mouloud section. South Sudan will undertake the update of the studies to upgrade 280 km of the Kapoeta-Boma-Raad road. Additionally, improvement of feeder roads – 50 km in Ethiopia and 15 km in Djibouti are part of the project scope. 

Source: AfDB

Tanzania

Government plans to strengthen industrial policies as Tanzania braces for reduced donor funding

The government will strengthen and refine key policies to accelerate the growth of manufacturing industries as part of broader efforts to expand the national economy and boost export capacity, the minister for Industry and Trade said recently. The announcement came just days after President Samia Suluhu Hassan cautioned that Tanzania should brace for reduced donor funding following the 29 October election-related violence. While acknowledging the significant role development partners have played in supporting national priorities, she said the country must now intensify domestic resource mobilisation, strengthen local industries, and reinforce economic self-reliance. According to the president, the government is ready to implement strategic measures to safeguard economic stability despite the anticipated decline in external financial support. Against this backdrop, Industry and Trade Minister Judith Kapinga said her ministry continues to play a central role in driving economic growth, noting that multiple indicators contribute to national financial strength beyond government revenue and domestic collections. “Currently, the industrial and trade sector contributes between 24 and 28% of foreign earnings, underscoring its importance to the economy,” she said.

Source: The Citizen