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issue 581 | 16 Feb 2025

World

CPI 2024: Trouble at the top

Behind a facade of prosperity, financial centres are providing a false sense of security from corruption. Once again, advanced economies dominate the top rankings of the 2024 Corruption Perceptions Index (CPI). These countries have long benefited from strong rule of law, functioning government institutions, and political stability – factors that contribute to a perception of lower corruption levels domestically. These same attributes, however, also make them prime targets for corrupt actors to launder and protect their illicit gains. The CPI, which combines data from 13 expert assessments and surveys, measures perceived corruption levels in the public sector. Yet it has its limitations: it does not evaluate private sector corruption, financial secrecy, or transnational corruption. This can create a misleading impression that some top-performing countries are effectively combatting corruption and remain untouched by its stain. This is far from the truth. In particular, nations hosting major financial centres are vulnerable to corrupt financial flows. While their strong institutions give the appearance of integrity, their financial sectors and regulatory frameworks often provide opportunities to exploit loopholes, ultimately undermining global anti-corruption efforts. 

Source: Transparency International

World

The EU AI Act – Navigating the boundaries of ethical AI

The European Union (EU) Artificial Intelligence (AI) Act (Regulation – EU – 2024/1689) (the Act) commenced on 1 August 2024 and regulates AI systems based on their risk classification. The Act adopts a risk-based approach and classifies AI systems into four categories based on their risk level: unacceptable risk; high risk; limited risk; and minimal risk. The Act imposes more onerous provisions as the risk level of an AI technology increases. Article 99(3) of the Act provides for hefty penalties should a party engage in any of the practices prohibited by Article 5 of the Act, being administrative fines of up to the greater of EUR35-million or if the offender is an undertaking, up to 7% of its total worldwide annual turnover for proceeding financial year, whichever is greater. However, the sanction regime under the Act will only take force and effect from 2 August 2025.

Source: ENS

Africa

AfDB’s Climate Action Window channels USD31-million to boost climate resilience in four countries

The Board of Directors of the African Development Bank (AfDB) Group has approved over USD31-million in funding under its African Climate Action Window (CAW) to strengthen climate resilience in Sierra Leone, South Sudan, Djibouti, and Madagascar. The CAW of the AfDB Group’s African Development Fund (ADF) seeks to mobilise USD4-billion by 2025 to provide rapid and coherent access to climate finance, support cofinancing, and prioritise the most vulnerable countries, fragile states, and those affected by conflict. The ADF is the concessional arm of the AfDB Group. The funding, approved in November and December 2024, will support innovative projects that respond to the CAW’s first call for project proposals. Forty-one pioneering climate adaptation projects valued at USD321.75-million have been selected in the initial funding wave, with a focus on tackling climate change, bolstering livelihoods of vulnerable communities, including women and youth, and enhancing climate information systems. The projects will also benefit from USD28.13-million in climate cofinancing from sources including the Green Climate Fund.

Source: AfDB

Africa

AU calls for visa-free movement to boost regional integration

As African leaders gather for the 38th African Union (AU) Summit, the call for a visa-free continent has taken centre stage. The AU Commission (AUC) and the African Development Bank (AfDB) have jointly urged African governments to accelerate the removal of visa restrictions that continue to hinder regional integration, trade, and economic development. Speaking at the High-Level Strategic Dialogue on Accelerating Visa-Free Movement for Africa’s Transformation, on 12 February, AU officials, policymakers, and business leaders highlighted the contradiction between Africa’s regional integration goals and the reality that many Africans still need visas to travel across the continent. "We cannot talk about a united Africa if Africans themselves cannot move freely within their own continent. It is time for our governments to evaluate what has worked and what has not worked," said Ambassador Albert Mudenda Muchanga, the AU Commissioner for Economic Development, Trade, Tourism, Industry and Minerals. Visa restrictions remain one of the biggest barriers to intra-African trade, he added. The Africa Visa Openness Index, a joint initiative by AfDB and the AUC, has consistently shown slow progress in easing travel restrictions, despite policy frameworks like the AU Free Movement Protocol and Agenda 2063’s vision of a borderless Africa. The ninth edition of the Index reveals that while some countries, such as Rwanda, The Gambia, Seychelles, Benin, and Ghana, have embraced visa-free policies, many others remain restrictive.

Source: AU

Africa

Local debt solutions at the forefront as AfDB launches pan-African debt management forum

The African Development Bank (AfDB) has launched a Debt Management Forum for Africa (DeMFA), a platform to manage Africa’s debt challenges against the backdrop of rising debt, increasing debt costs, and a decline in credit ratings across the continent. The launch event, held in Abuja, Nigeria, on 16 and 17 December 2024 included a policy dialogue with the theme Making Debt Work for Africa: Policies, Practices and Options. The dialogue brought together representatives of African Ministries of Finance, central banks, debt management offices, academics, and other experts and stakeholders to exchange views on debt challenges and identify policy and strategic actions to make debt work for Africa. Opening the forum, Nigeria’s Minister of Finance, Wale Edun, represented by Patience Oniha, Director General of the Debt Management Office, said, “The introduction of DeMFA, whose launch and inaugural meeting we are gathered for today, is very significant in that it is focused on public debt. I would like to commend the [AfDB] for the very laudable initiative of instituting [DeMFA]… it certainly is a welcome development to have a debt forum specifically dedicated to Africa.”

Source: AfDB

Africa / Germany

AfDB and Germany announce major initiatives in energy access, private sector development

Germany and the African Development Bank (AfDB) Group announced joint initiatives to accelerate energy access and private sector growth across Africa. The partnership, which was unveiled during a high-level meeting in Abidjan recently, includes strengthened support for the Mission 300 initiative, which aims to provide electricity access to 300 million Africans by 2030, and expanded financing for youth entrepreneurship programmes. As the largest contributor to the 16th replenishment of the African Development Fund, the AfDB Group’s concessional window, and a key shareholder, Germany's commitment reinforces its position as a strategic partner in Africa's sustainable development agenda. The event brought together over 90 senior officials from the bank, German Federal Ministry for Economic Cooperation and Development (BMZ), Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ), and Kreditanstalt für Wiederaufbau (KfW). The partnership will enhance support for the AfDB Group’s energy access programmes, focusing on implementing National Energy Compacts across member countries.

Source: AfDB

West Africa

Powering Africa: The transformational impact of regional energy projects in West Africa

African countries are working together to create larger markets and benefit from economies of scale. In the energy sector, political commitment, better regulations, and public-private financing are improving electricity access and expansion across the continent. Through the International Development Association, the part of the World Bank that focuses on the world’s low-income countries, the World Bank is promoting regional cooperation with African countries, regional organisations, and other development partners. One key initiative is the West African Power Pool, which is helping boost energy electricity supply in 14 countries, benefiting 57% (more than 244 million people) of the population in West Africa. Other initiatives recently completed or currently underway to achieve universal electricity access by 2030 include the Côte d’Ivoire-Liberia-Sierra Leone-Guinea Interconnector project, the North Core Interconnector project, the Senegal River Basin Development Organization’s Transmission Expansion project, and The Gambia River Basin Development Organization Interconnection project.

Source: World Bank

Angola

Angolan President João Lourenço inaugurates Barra do Dande Ocean Terminal

Angolan President João Lourenço inaugurated the first phase of the Barra do Dande Ocean Terminal in Angola on 10 February 2025. Featuring oil and gas logistics infrastructure, the terminal will support energy trade in Angola while enabling national oil company Sonangol increase its fuel storage capacity. Representing the largest fuel storage facility in the country, the terminal comprises 29 storage tanks with a capacity to store 580 000 cubic metres of gasoline, diesel and gas. A 1 700 metre jetty was also constructed, enabling the facility to receive large ships. A second phase will increase storage capacity to 728 500 cubic metres. Situated in Dande Municipality in Bengo Province, the Barra do Dande Ocean Terminal was developed at a cost of USD642-million and aims to strengthen the country’s logistics capacity. The facility ensures there is no shortage of refined products for the domestic market while supporting fuel exports.

Source: Energy Capital & Power

Cabo Verde

Fifth review under the ECF arrangement, request for a waiver of nonobservance of quantitative performance criterion, modification of quantitative performance criteria, and second review under the RSF arrangement

The Executive Board of the International Monetary Fund (IMF) completed the fifth review of Cabo Verde’s performance under the 36-month Extended Credit Facility (ECF) arrangement that was approved on 15 June 2022, and the second review of the 18-month Resilience and Sustainability Facility (RSF) arrangement that was approved on 11 December 2023. The completion of the fifth ECF review allows the authorities to draw the equivalent of SDR4.5-million (approximately USD5.87-million), while completion of the second RSF review will allow disbursement of SDR2.632-million (approximately USD3.43-million). In completing the fifth review under the ECF arrangement, the executive board approved the authorities’ request for modification of the end-December 2024 performance criteria. The executive board supported the delayed implementation of three Reform Measures under the RSF arrangement. Cabo Verde continues to grow strongly, reflecting a rebound in tourism, robust export performance, as well as private consumption growth. The authorities have been successful in maintaining macro-financial stability.

Source: IMF

Cameroon

Cameroon’s SONAMINES sets 2026 target for first limestone production

The National Mining Corporation of Cameroon (SONAMINES) aims to commence limestone production from its own mines by the end of 2026, according to General Manager Serge Herve Boyogueno. Speaking to African Mining Week, Boyogueno highlighted that Cameroon currently hosts nine cement manufacturing plants, which rely on imported limestone from neighbouring countries, with only a small fraction sourced locally. The limestone project will enhance domestic supply, according to Boyogueno, and falls under efforts by Cameroon to diversify and expand the mining industry for job creation and economic growth. “The contribution of the mining sector is still relatively small, though we have massive minerals, because most industrial projects are still in the exploration stage,” added Boyogueno. “Gold remains our most actively mined resource, primarily through small-scale operations, but our goal is to expand industrial exploration and production across multiple minerals.” In addition to the limestone project, SONAMINES is seeking investment partners for its rutile, gold, bauxite and three iron ore exploration licences, according to the general manager. Cameroon produced 600 kgs of gold over the past two years and is targeting 210 kgs in both 2025 and 2026.

Source: Energy Capital & Power

Central African Republic /The Gambia

Renewables boost sustainable development in CAR and The Gambia

In a significant stride toward bolstering the energy sector in Western and Central Africa, the Emergency Electricity Supply and Access Project in the Central African Republic (CAR) and The Gambia Electricity Restoration and Modernization Project in The Gambia have increased power supply capacity in these countries by 40% and 20%, respectively. With a combined USD149-million investment, these projects benefit over 80 000 households (about 500 000 people) between the two of them and have improved electricity services for small and medium businesses since commissioning in 2023 and 2024, respectively. The World Bank’s global energy programme focuses on the transition to clean, affordable energy, efficiency, and improved access, particularly in resource-constrained countries like CAR and The Gambia. Developing affordable and climate-resilient energy solutions is imperative. The World Bank’s strategy in these countries includes detailed power sector planning as a key tool for transforming the sector. Additionally, the World Bank’s programmatic approach aims to accelerate reforms by promoting private sector participation to create sustainable energy solutions. The World Bank’s approach to revitalising the energy sector in CAR and The Gambia focuses on building essential new infrastructure throughout the energy supply process.

Source: World Bank

Ghana

Ghana can pave the way for sustainable growth by focusing on long-term reforms to build a robust fiscal system

The World Bank Group’s latest Public Finance Review report, titled Building the Foundations for a Resilient and Equitable Fiscal Policy, highlights that Ghana's impressive GDP growth of 6.8% annually from 2008 to 2019 was driven by oil production and debt accumulation, leaving the country highly vulnerable to global shocks. The report notes that Ghana's recent debt crisis was fueled by weak expenditure controls, inefficient public spending, underperforming revenue collection, and costly borrowing. Despite taking decisive steps to stabilise its economy since 2022, Ghana needs to accompany fiscal consolidation with structural reforms to address the root causes of the crisis and support economic transformation and sustainable development. “Ghana needs to persist in its ambitious fiscal consolidation efforts, ensuring that adjustments are both fair and sustainable,” said Robert Taliercio, World Bank Country Director for Ghana, Liberia and Sierra Leone. “It is crucial to protect pro-poor and pro-growth investment, while enhancing domestic revenue mobilisation. Additionally, Ghana must address the increasing fiscal liabilities stemming from the energy and cocoa sector.”

Source: World Bank

Liberia

IMF Executive Board completes the first review under the ECF arrangement for Liberia

The Executive Board of the International Monetary Fund (IMF) completed the first review of the arrangement under the Extended Credit Facility (ECF) arrangement for Liberia, allowing Liberia to draw SDR34.3-million (equivalent to about 13.3% of quota or USD46-million), which will be used to strengthen Liberia’s international reserve position. Liberia’s economic growth has remained strong, with real GDP growth expected to accelerate to 5.6% in 2025 from 4.8% in 2024. Inflation and the exchange rate have remained stable, and the current account deficit has continued to narrow. The authorities have successfully restored fiscal discipline, which is key for maintaining macro-financial stability. The public debt-to-GDP ratio has started to fall, reflecting a sizable consolidation of the fiscal primary balance. Recent progress in mobilising tax revenues, reining in recurrent spending, and anchoring financial stability is promising. The authorities’ commitment to modernise the taxation regime, including the adoption of value-added tax, will play a crucial role in creating fiscal space for higher investments, while preserving debt sustainability. The authorities’ renewed commitments to urgently tackle issues in weak banks and improve governance in public institutions are encouraging. Addressing the large and persistent non-performing loans stock remains a priority to enhance financial stability.

Source: IMF

Nigeria / Niger / Algeria

Algeria, Nigeria, Niger sign deal to fast-track Trans-Saharan Gas Pipeline

Algeria, Nigeria, and Niger have signed agreements to advance the Trans-Saharan Gas Pipeline (TSGP), a project aimed at linking Africa's gas reserves to European markets. The signing ceremony in Algiers followed a ministerial meeting of the TSGP Steering Committee, Algeria's energy ministry said. Algerian Energy Minister Mohamed Arkab called the 4 000 km pipeline a "strategic bridge between Africa and the world," saying it would transport 20 to 30 billion cubic metres of natural gas annually and enhance regional and global energy security. The TSGP would move gas from Nigeria through Niger to Algeria, with potential supplies to Europe and other markets.

Source: Xinhua

Rwanda

Rwanda broadens tax base to fuel economic growth

The Rwandan Cabinet has approved tax policy reforms to bolster the country's financial resources and drive economic growth, the finance ministry said recently. The changes, to take effect in the 2024/2025 fiscal year and beyond, aim to broaden the tax base, enhance revenue mobilisation, and streamline tax administration, according to the statement, which followed a Cabinet meeting. The measures include a 15% excise duty on imported cosmetic and beauty products (with exemptions for critical pharmaceutical beauty products), increased vehicle (including electric vehicles) registration fees, and a shift in the fuel levy from a fixed fee to 15% of cost-insurance-freight, the statement said. Value-added tax, which was previously exempted, will be reintroduced on mobile phones and select information and communications technology (ICT) equipment. The government has pledged to work with stakeholders to ensure continued growth in smartphone ownership and usage and will consult with the Ministry of ICT and Innovation on exemptions for specific ICT equipment, it added.

Source: Xinhua

Tanzania

Tanzania hosts inaugural Power and Electric Technology Exhibition

The inaugural Power and Electric Technology Exhibition (Power and Electric Tanzania 2025) was held in Dar es Salaam, focusing on creating opportunities and promoting environmental conservation. The three-day exhibition, organised by the Tanzania Renewable Energy Association (TAREA), took place at the Diamond Jubilee Hall. TAREA’s secretary general Matthew Matimbwi said the exhibition aims at unlocking various economic and social opportunities in the country. "This is the first exhibition of its kind and will be a continuous event involving various businesses from Tanzania and India. The goal is to encourage the use of high-quality electric products and promote the adoption of clean energy," he said. Among the items showcased were modern construction equipment, an electric stove that operates for just TZS200, and an electric-powered tricycle, which were major highlights of the event. These products are particularly relevant as the world grapples with climate change caused by environmental degradation linked to the use of diesel and petrol.

Source: The Citizen

Tanzania

Tanzania’s insurance market grows by 19.11%

Tanzania’s insurance market recorded a 19.11% growth last year, driven by the entry of new companies and an expanding range of insurance solutions, according to industry stakeholders. An unaudited report compiled by the Association of Tanzania Insurers indicates that Gross Premium Written (GPW) rose to TZS1.47-trillion in 2024, up from TZS1.24-trillion the previous year. The increase was attributed to multiple factors, including market expansion and the introduction of diverse insurance products. The report further revealed that out of 30 non-life insurance companies, only three experienced a decline in performance. Meanwhile, all but one of the six life insurance firms recorded positive growth. CRDB Insurance Co Ltd, which entered the market two years ago, demonstrated remarkable growth, increasing its GPW from TZS1.8-billion to TZS26.8-billion. Speaking to The Citizen, insurance specialist Jumanne Mbepo said: “The growth rate is a positive sign, but it remains below the 22% target needed to achieve and attain a 5% insurance premium-to-GDP penetration by 2030.” Mr Mbepo emphasised that the expansion of new insurance companies had widened market reach and solutions.

Source: The Citizen

Uganda

Notice of deregistration of companies from the register

In a Notice dated 7 February 2025, the Uganda Registration Services Bureau indicated that pursuant to Section 130(6) of the Companies Act (Cap. 106) and by notices dated 20 July 2023, 14 August 2023 and 30 August 2023, the Registrar of Companies has deregistered 10 001 companies for failure to file annual returns for a period of five years. Companies desirous of being restored onto the register were required to apply to the Registrar of Companies to be restored within 12 months from the date they were struck off. Companies that failed to apply for restoration were subsequently deregistered in accordance with Regulation 43(1) of the Companies Regulations, 2023.

Source: Uganda Registration Services Bureau

Uganda

Regulatory update – Ugandan Electricity Act

Uganda’s Electricity Regulatory Authority (ERA) has recently published a notice specifying the category of consumers that can purchase electricity in bulk directly from generation licensees, the bulk supplier or uncontracted generators (known as eligible sellers). For a consumer to be eligible to purchase electricity in bulk, the consumer must have an average demand of at least 1 500 kVA (approximately 1 350 kW). This will likely cover consumers engaged in industry and manufacturing business. If such an eligible consumer is connected to the national grid, that consumer can purchase only 30% of its electric energy directly from an eligible seller. If, however, the eligible consumer is not connected to the national grid, such consumer can purchase 100% of its electric energy directly from an eligible seller. This development follows amendments to the Electricity Act in 2022 which allowed consumers to purchase electricity in bulk directly from generation licensees, the bulk supplier or uncontracted generators. Prior to this amendment, Uganda operated a single buyer model – the Uganda Electricity Transmission Company Limited held the licence to purchase all electricity generated in Uganda.

Source: ENS