<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="584" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-820x584.jpg" alt="" class="wp-image-505311" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-820x584.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-300x214.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-126x90.jpg 126w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-768x547.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-1536x1094.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/NW2AS3N47ZIR7LBODI45CSJWAM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">ECOWAS President Omar Alieu Touray addresses the Heads of State and delegates during the Economic Community of West African States (ECOWAS) summit in Abuja, Nigeria July 7, 2024. REUTERS/Marvellous Durowaiye</figcaption></figure>



ABUJA, July 8 (Reuters)&nbsp;&#8211;&nbsp;The Economic Community of West African States (ECOWAS) said it was disappointed with a lack of progress in reconciling with breakaway, junta-led Burkina Faso, Mali and Niger and will make &#8220;more vigorous&#8221; reconciliation efforts.



ECOWAS commission president Oumar Touray said at the start of a summit in the Nigerian capital Abuja on Sunday the region risks disintegeration and worsening insecurity after the three Alliance of Sahel States (AES)signed a confederation treaty.



That treaty underscored the juntas&#8217; determination to exit the near 50-year ECOWAS after also severing military and diplomatic ties with Western powers while seeking greater ties with Russia.



&#8220;The Authority expresses disappointment with the lack of progress in engagements with the authorities of Burkina Faso, Mali and Niger and instructs the President of the Commission to facilitate a more vigorous approach,&#8221; ECOWAS said in a communique released on Monday.



But ECOWAS would &#8220;develop a forward-looking contingency plan&#8221; regarding all eventualities in relations with the AES.



Juntas in Burkina Faso, Niger and Mali seized power in a series of military coups between 2020-2023.



It is not clear how closely the AES will harmonise political, economic and defence policies as it struggles to contain a decade-old battle with Islamist insurgents and grow economies that are among the world&#8217;s poorest.



Their departure could weaken ECOWAS and Touray said the freedom of movement and a common market of 400 million people offered by the bloc were under threat.



ECOWAS re-elected Nigerian President Bola Tinubu chairman for another year and tasked Senegalese and Togolese leaders to negotiate with the juntas to try bring them back into the bloc.



The ECOWAS leaders approved a decision to mobilise a 5,000 strong regional standby counter-terrorism force. The force would start as a 1,650-man brigade to be increased over time.



Member countries are expected to fund the force and will also approach the African Union for financial support.



(Editing by MacDonald Dzirutwe and Angus MacSwan)

Leaders from West African bloc ECOWAS meet at summit in Abuja

West Africa’s ECOWAS decries lack of progress with junta states

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1366" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-scaled.jpg" alt="" class="wp-image-504220" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/07/GettyImages-1932805483-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">Heineken Lokpobiri, Nigeria&#8217;s oil minister, during a Bloomberg Television interview on day two of the World Economic Forum (WEF) in Davos, Switzerland, on Wednesday, Jan. 17, 2024. The annual Davos gathering of political leaders, top executives and celebrities runs from January 15 to 19. Photographer: Stefan Wermuth/Bloomberg via Getty Images</figcaption></figure>



ABUJA, July 4 (Reuters)&nbsp;&#8211;&nbsp;Nigeria has been chosen to host the newly formed Africa Energy Bank (AEB), its oil minister said on Thursday, as Africa’s top oil producer beat three rival countries for rights to the multilateral lender.



The decision, reached at an extraordinary meeting of the Council of Ministers of the African Petroleum Producers Organization (APPO), places Nigeria at the forefront of Africa&#8217;s energy future, Minister of State Petroleum Resources Heineken Lokpobiri, said in a statement.



Nigeria&#8217;s bid to host the AEB was strengthened in late May after it ratified the bank&#8217;s charter and President Bola Tinubu approved a $100 million investment to the bank, greater than the required $83.33 million for member states.



The fossil fuel-focused bank, a partnership between Afrexim Bank and APPO, aims to fund energy projects on the continent and support its energy transition goals.



&#8220;This decision reflects our collective ambition to create African solutions to African energy challenges,&#8221; Lokpobiri said.



&#8220;The African Energy Bank will be instrumental in providing the necessary financial backbone for energy projects that will drive growth and development across the continent,&#8221; he added.



The AEB initially has $5 billion to spend when it takes off later this year.



Analysts said that Nigeria, as a founding member of APPO and Africa&#8217;s top energy producers, has shown strong interest in the bank as the country makes a new push for investment into its lagging oil and gas industry.



&#8220;Hosting the bank would be a vote of confidence in Nigeria at a time its energy industry badly needs a boost,&#8221; Clementine Wallop, director for sub-Saharan Africa at political risk consultancy Horizon Engage, said before the announcement was made.



The three other countries that vied to host the AEB are Algeria, Benin and Ghana, after Ivory Coast and South Africa didn&#8217;t meet the necessary requirements.



(Additional reporting by Isaac Anyaogu in Lagos, Wendell Roelf in Cape Town; Editing by Elisha Bala-Gbogbo and David Gregorio)

Day Two Of The World Economic Forum (WEF) 2024

Nigeria beats rivals for bid to host new Africa Energy Bank

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg" alt="" class="wp-image-459116" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/02/76KI5H4MAFL5ZK7OGV4LXR2UG4-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County, Texas, U.S., November 22, 2019. REUTERS/Angus Mordant/File Photo</figcaption></figure>



BRUSSELS/LONDON, July 4 (Reuters) &#8211; Nigeria&#8217;s debt to gasoline suppliers has surpassed $6 billion &#8211; doubling since early April &#8211; as state oil firm NNPC struggles to cover the gap between fixed pump prices and international fuel costs, six industry sources said.



Nigerian President Bola Tinubu announced an end to expensive fuel subsidies last year, allowing pump prices to triple. But state oil company NNPC capped pump prices shortly afterward as citizens chafed under rising cost of living.



The cap, coupled with a naira currency crash, allowed the subsidy to creep back. Tinubu&#8217;s government expects the subsidy to cost at least $3.7 billion this year.



Analysts, NGOs and even government officials have slammed the subsidy for years as wasteful and corrupt. But Nigerians, who get few government services, have long seen cheap fuel as their right, especially in the current cost-of-living crisis.



Last week, deadly riots forced Kenya&#8217;s debt-burdened government to cancel planned tax rises, casting a shadow over efforts elsewhere to inflict any further pain on citizens stung by rising inflation.



Senegal&#8217;s energy subsidy bill remains high, at 3.3% of GDP, while Egypt and Angola are also trying to axe subsidies to shore up state finances.



NNPC began struggling early this year when late gasoline payments surpassed $3 billion.



The company has still not paid for some January imports, traders said, and the late payments amount to $4 billion-$5 billion. Under contract terms, NNPC is meant to pay within 90 days of delivery.



NNPC declined to comment.



&#8220;The only reason traders are putting up with it is the $250,000 a month (per cargo) for late payment compensation,&#8221; one industry source said.



At least two suppliers already stopped participating in recent tenders after hitting self-imposed debt exposure limits to Nigeria, the sources said, meaning they will not send more gasoline until they receive payments.



Traders thrive in risky environments, but they place limits on how much credit they allocate per trade in order to avoid too much exposure on one borrower. These limits vary by company based on their size and where they operate.



As a result, Nigeria&#8217;s tenders to buy gasoline in June and July were smaller, traders said. NNPC will import via tender about 850,000 tonnes in July, two of the sources said, down from the typical 1 million tonnes in previous months.



Fresh fuel queues have already started to form in Lagos this week.



Nigeria, Africa&#8217;s largest oil exporter, imports virtually all its fuel due to years of neglect at its state-owned oil refineries. The newly opened 650,000 barrel per day Dangote refinery has not yet produced marketable gasoline, and is selling other fuels abroad.



The country has few savings to fall back upon as corruption and wasteful spending have eaten up decades of oil revenues. Cash-strapped NNPC has also mortgaged much of its spot oil cargoes, limiting what it can sell for cash.



In late 2023, NNPC secured its biggest-ever oil-backed loan worth $3.3 billion from Afreximbank and a consortium of traders, including Gunvor, to shore up the country&#8217;s foreign exchange.



(Reporting by Julia Payne and Libby George; Additional reporting by Isaac Anyaogu in Lagos; Editing by Jan Harvey)

FILE PHOTO: The sun is seen behind a crude oil pump jack in the Permian Basin in Loving County

As Nigeria’s gasoline debt hits $6 billion, some traders back out, say sources

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg" alt="" class="wp-image-422301" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GVVD7RTPANKEHJR4J5T4JRVGHA.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana, June 15, 2015. Picture taken June 15. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, June 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana has reached an agreement in principle with&nbsp;two bondholder&nbsp;groups to restructure&nbsp;some$13 billion of&nbsp;international debt,&nbsp;it said on Monday,&nbsp;taking it a step&nbsp;closer to completing its debt overhaul that has been years in the making.



Under the agreement, bondholders will forego about $4.7 billion of their claims and provide cash flow relief of about $4.4 billion during the period of Ghana&#8217;s current financial support programme with the International Monetary Fund that is scheduled to end in 2026.



&#8220;The formal launch of the consent solicitation is expected in the upcoming weeks,&#8221; the government said in a statement.



The agreement will provide Ghana a path to economic recovery through significant debt relief and provision of cash flow, the committee representing international bondholders said in a statement, while welcoming the deal.



The deal comes a week after Ghana struck another agreement with its bilateral creditors, paving the way for the IMF&#8217;s executive board to sign off on a $360 million disbursement after the second review of Ghana&#8217;s $3 billion programme.



The board is scheduled to meet on June 28.



The West African gold and cocoa producer defaulted on most of its $30 billion in external debt in 2022,&nbsp;after&nbsp;the&nbsp;fallout from&nbsp;the COVID-19 pandemic, the war in Ukraine and higher global interest rates&nbsp;exacerbated economic strains.



It started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however,&nbsp;had&nbsp;stalled in April after the proposed deal failed to meet the&nbsp;IMF&#8217;s&nbsp;debt sustainability analysis requirements, and both sides were under pressure to finalise an agreement before December elections in Ghana.



Investors are watching Ghana&#8217;s debt restructuring closely after Zambia&#8217;s bondholders signed off on the southern African nation&#8217;s own debt overhaul which was more than three years in the making.



Ghana&#8217;s international bonds inched higher on the day, reversing earlier losses, with most of the curve bid between 51-53.5 cents in the dollar, Tradeweb data showed.



(Reporting by Maxwell Akalaare Adombila in Accra and Duncan Miriri in Nairobi, additional reporting by Marc Jones, MaPrerna Bedi, Shanima A and Alexander Winning in Johannesburg; Editing by Karin Strohecker and Anil D&#8217;Silva)

GVVD7RTPANKEHJR4J5T4JRVGHA

Ghana reaches agreement in principle on $13 bln bond rework

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg" alt="" class="wp-image-498805" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/IJVJN3SG2BNFJFNACAXCPMV3RA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view of the Makola market, one of the country&#8217;s largest trading centres in Accra, Ghana March 26, 2022. Picture taken March 26, 2022. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 20 (Reuters) &#8211; Ghana has reached an agreement in principle with its bondholders for the restructuring of $13 billion worth of international debt, three sources told Reuters on Thursday, on the heels of a deal finalised with official creditors earlier this month.



The deal will see bondholders take a haircut on principal of up to 37% and maturity of the bonds lengthened, two of the sources said.



The West African gold and cocoa producing nation defaulted on most of its $30 billion in external debt in 2022, under the strain of the COVID-19 pandemic, the war in Ukraine and higher global interest rates and surging debt.



Like Zambia, Ghana also signed up for debt treatment under the G20 Common Framework, a process designed to facilitate quick debt overhauls and to bring the newest large bilateral lender, China, into the process.



Zambia&#8217;s bondholders signed off on its restructuring earlier this month, after the southern African copper producer became the first African country to default during the pandemic.



For Ghana, &#8220;things are pretty close. We can expect an announcement by next week,&#8221; one source said, asking not to be named because they were not authorised to speak to media.



The other two sources said the announcement could come as soon as Friday.



Ghana&#8217;s finance ministry and the Paris Club, an alliance of creditor nations, could not immediately be reached for comment due to the late hour.



Ghana started formal talks with two groups of bondholders in mid-March &#8211; a group of Western asset managers and hedge funds and another one including regional African banks.



The negotiations, however, stalled in April after the proposed deal failed to meet the International Monetary Fund&#8217;s (IMF) debt sustainability analysis requirements, forcing both sides to regroup to find a suitable solution.



The three sources said the deal had since fit into a revised IMF debt framework on Ghana shared with bondholders earlier, resulting in the agreement in principle.



The world&#8217;s No.2 cocoa producer earlier this month agreed a pact with its official creditor committee to formalise a debt restructuring deal reached in January.



The outlines of the agreement paved the way for the IMF executive board to hold a June 28 meeting on Ghana to consider a second review of its $3 billion loan, three-year package and the release of the next tranche of $360 million.



(Editing by Alessandra Prentice, Shri Navaratnam and Jamie Freed)

FILE PHOTO: FILE PHOTO: People make trade in Accra

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-820x547.jpg" alt="" class="wp-image-497815" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/SU6XM3FG2VIQ7PJBFXDGABCTFM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Customers peruse goods at Makola market in Accra, Ghana, June 15, 2015. REUTERS/Francis Kokoroko/File Photo</figcaption></figure>



ACCRA, June 18 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s economy grew 4.7% year-on-year in the first quarter of 2024, the country&#8217;s statistics agency said on Tuesday.



Samuel Kobina Annim, the government statistician said the first quarter growth rate was driven by strong performance in industry and services sectors.



The gold-, oil- and cocoa-producer and its bondholders will restart talks this week to hash out a debt restructuring deal on $13 billion of international bonds.



The west African nation defaulted on most of its $30 billion in external debt in 2022, weighed by the COVID-19 pandemic, the war in Ukraine and rapid global interest rate hikes that boosted borrowing costs.



(Reporting by Christian Akorlie; Writing by Maxwell Akalaare Adombila Editing by Bate Felix)

Customers peruse goods at Makola market in Accra

Ghana’s economy grew 4.7% in the first quarter of 2024

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-820x547.jpg" alt="" class="wp-image-497812" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/FVASB46IHROJZMH44F6CQPKGAQ-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The buildings of the central business district of Plateau are pictured ahead of the presidential elections in Abidjan, Ivory Coast October 27, 2020. Picture taken October 27, 2020. REUTERS/Luc Gnago</figcaption></figure>



ABIDJAN, June 18 (Reuters)&nbsp;&#8211;&nbsp;Ivory Coast expects a more than threefold increase to its oil output by 2027, boosted by recent oil and gas discoveries at the West African nation&#8217;s Baleine and Calao offshore fields, President Alassane Ouattara said on Tuesday.



The world&#8217;s top cocoa-producing nation is hoping to become a major regional oil and gas producer and regional energy hub.



Ouattara told a joint session of parliament that more than $15 billion is expected to be invested in the country&#8217;s oil sector, adding that output would grow to about 200,000 barrels per day (bpd) from 60,000 bpd by 2027.



&#8220;It will be a spectacular leap,&#8221; Ouattara said.



Italy&#8217;s Eni has said it would invest $10 billion in developing the Baleine field, which will take place in three phases from 2023 to 2027.



Certified reserves of the Baleine field, discovered by the Italian energy group in 2021, are estimated at 2.5 billion barrels of oil and 3.3 trillion cubic feet of natural gas.



The group announced its Calao discovery in March, with preliminary assessments indicating potential resources ranging between 1 billion and 1.5 billion barrels of oil.



Ivory Coast&#8217;s economic growth is forecast around 7% between 2024 and 2027, President Alassane Ouattara also said, adding that the country is expected to remain the economic powerhouse of the French-speaking West Africa region.



(Reporting by Loucoumane Coulibaly and Bate Felix; Writing by Anait Miridzhanian; Editing by Kirsten Donovan and David Goodman)

FILE PHOTO: The buildings of the central business district of Plateau are pictured ahead of the presidential elections in Abidjan

Ivory Coast expects threefold oil output increase by 2027

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg" alt="" class="wp-image-423316" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/02/F4TO3YKQWNK6NCNXZJUQ2UEGC4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A man walks past the International Monetary Fund (IMF) logo at its headquarters in Washington, U.S., May 10, 2018. REUTERS/Yuri Gripas/</figcaption></figure>



ACCRA, June 12 (Reuters)&nbsp;&#8211;&nbsp;Ghana&nbsp;has finalized&nbsp;a&nbsp;pact with its official creditor committee to&nbsp;formalise a debt restructuring deal agreed in January,&nbsp;smoothing the path towards a release of further funding from the International Monetary Fund,&nbsp;its finance ministry said on Wednesday.



The&nbsp;outlines of the agreement&nbsp;pave the way for approval by the&nbsp;IMF&#8217;s executive board for a&nbsp;second review of a $3 billion loan package and release of the next tranche of $360 million.



&#8220;The IMF Board&#8217;s approval should also trigger more financial assistance from our development partners, particularly the World Bank,&#8221; the finance ministry said in a statement.



The announcement confirms a Reuters report last week that a memorandum of agreement was about to be formalised.



Ghana is restructuring its debt to help it emerge from its worst economic crisis in a generation after defaulting on&nbsp;much of&nbsp;its overseas debt in 2022 amid soaring servicing costs.



Each creditor nation is now expected to sign the agreement individually, the ministry said, adding it would&nbsp;also bolster ongoing restructuring discussions with private creditors.



Ghana&#8217;s sovereign dollar bonds were little changed by 0837 GMT, with most issues trading between 50-51 cents on the dollar, a distressed level that suggests the market expects trims on private debt.



The financial terms of the agreement with official creditors remained unchanged from the deal agreed in January, the ministry said, adding it provided &#8220;significant debt service relief&#8221; during the period of the IMF-supported programme.



Ghana, the world&#8217;s second largest cocoa producer, is also facing cocoa delivery delays due to poor harvests, a move that could cut its income and compound debt distress



(Reporting by Maxwell Adombila Akalaare; Additional reporting by Libby George in London; Writing by Sofia Christensen and Duncan Miriri; Editing by Bernadette Baum)

FILE PHOTO: Man walks past the IMF logo at HQ in Washington

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg" alt="" class="wp-image-495905" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/VHFMCME3UZO7DANJAKAOCLCA2U-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigeria&#8217;s President Bola Tinubu looks on after his swearing-in ceremony in Abuja, Nigeria May 29, 2023. REUTERS/Temilade Adelaja/File Photo</figcaption></figure>



ABUJA, June 12 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s President Bola Tinubu said on Wednesday economic reforms would continue despite increasing hardships that have fuelled public anger, and promised to send an executive bill to parliament soon to set a new minimum wage.



Tinubu, who came to power a year ago, removed a decades-old petrol subsidy that kept prices artificially low and devalued the currency, sending inflation soaring to 33.69% in April, its highest level in nearly three decades and eroding incomes.



In a television broadcast to mark Democracy Day, Tinubu acknowledged hardships caused by the reforms, which also include higher interest rates and the partial removal of electricity subsidies, but he said this would create a stronger foundation for future growth.



&#8220;Our economy has been in desperate need of reform for decades. It has been unbalanced because it was built on the flawed foundation of over-reliance on revenues from the exploitation of oil,&#8221; Tinubu said.



&#8220;As we continue to reform the economy, I shall always listen to the people and will never turn my back on you.&#8221;



Nigeria is grappling with the worst cost-of-living crisis in decades and labour unions last week suspended a strike called to pressure the government to agree a new monthly minimum wage.



The government has offered to double the minimum wage to 62,000 naira ($41.89) a month against labour demands of 250,000 naira, and Tinubu said his government had negotiated in good faith. The last minimum wage was set in 2019.



&#8220;We shall soon send an executive bill to the National Assembly to enshrine what has been agreed upon as part of our law for the next five years or less,&#8221; Tinubu said.



He did not say whether the bill would contain the government minimum wage proposal or a new figure.



Labour union leaders have said they would wait to hear back from Tinubu before deciding on next steps.



($1 = 1,480.0000 naira)



(Writing by MacDonald Dzirutwe; Editing by Jamie Freed)

FILE PHOTO: Nigeria’s President Bola Tinubu looks on after his swearing-in ceremony in Abuja

Nigeria’s president says economic reforms will continue despite hardships

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="550" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg" alt="" class="wp-image-495374" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-820x550.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-300x201.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-134x90.jpg 134w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-768x515.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-1536x1031.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/WFQYVBPXURJ57NHQPRJRSOJRI4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A general view shows Tata Steel Port Talbot steel production plant, ahead of its planned transition from blast furnace to electric arc furnaces, at Port Talbot, Wales, Britain, March 11, 2024. REUTERS/Toby Melville/File Photo</figcaption></figure>



LONDON, June 5 (Reuters)&nbsp;&#8211;&nbsp;A group of 10 West African countries has weighed into a debate over whether companies around the world should be allowed to use carbon offsets to cut emissions, arguing they are critical to attracting financing for climate and conservation efforts.



While some scientists and technical advisers have criticised offsets as undermining efforts to rein in climate change by permitting continued greenhouse gas emissions, others see them as a necessary tool to boost crucial finance.



In a letter to the Science-Based Targets initiative (SBTi), the world&#8217;s top corporate climate-target verifier, the 10 countries called on its trustees to ensure offsetting is included within net-zero guidance to companies.



The letter, signed by Burkina Faso, Cape Verde, Ivory Coast, Gambia, Guinea-Bissau, Guinea, Liberia, Mali, Senegal and Togo, said recent reports questioning the validity of offsetting emissions were the work of &#8220;misguided activists&#8221;.



There is growing debate over the ethics and efficacy of offsets, also called carbon credits, to excuse some corporate emissions. Offsets are generated by investing in projects that lower or prevent carbon emissions and can be traded.



On Wednesday, U.N. Secretary-General Antonio Guterres weighed into the fray, warning about &#8220;dubious carbon offsets that erode public trust while doing little or nothing to help the climate.&#8221;



&#8220;We need high integrity carbon markets that are credible and with rules consistent with limiting warming to 1.5 degrees. I also encourage scientists and engineers to focus urgently on carbon dioxide removal and storage – to deal safely and sustainably with final emissions from the heavy industries hardest to clean.&#8221;



The letter&#8217;s main author told Reuters that the lack of certainty in the SBTi&#8217;s guidance was damaging corporate confidence and slowing financing.



&#8220;The SBTi is, rightly or wrongly, the gatekeeper that can unlock finance from corporations around the world that wish to contribute to climate action &#8230; at the same time as (and not instead of) taking action to decarbonise their valuation,&#8221; said Ousmane Fall Sarr, coordinator of the West African Alliance on Carbon Markets and Climate Finance.



The SBTi&#8217;s current guidance only allows very limited use of renewable energy certificates which a company can use to reduce so-called Scope 2 emissions, those related directly to the energy it uses.



But SBTi&#8217;s board of trustees said on April 9 that, subject to certain rules and guidance, it would allow them for Scope 3 emissions, those associated with their supply chains, distribution and product use. This was welcomed by both companies and developing countries that are relying on carbon offset projects to generate cash.



Uncertainty remained, however, because the board had not followed SBTi&#8217;s normal procedure for policy-setting. SBTi has said it is reviewing the scientific research and debating the issue before making a final call.



In a statement to Reuters, it said it welcomed feedback from all stakeholders, and would open a public consultation once its research was complete.



<h2 class="wp-block-heading" id="h-no-alternative">&#8216;NO ALTERNATIVE&#8217;</h2>



The SBTi, formed by a coalition of non-profit organisations, is seen as a key player in global efforts to scale up the market for voluntary carbon credits by addressing quality concerns and ensuring they deliver the benefits they claim.



The United States added momentum on&nbsp;May&nbsp;28 by unveiling its own guidelines for voluntary carbon credits.



In their May 24 letter, the West African countries reminded the SBTi board of its pledge in April, which is still on its website. &#8220;To us, carbon markets is climate finance,&#8221; the letter said. &#8220;There is no alternative. We are at a pivotal moment.&#8221;



With climate financing still far below needed levels, the letter said offset revenues were crucial to supporting poor communities, encouraging conservation, making the transition to clean energy and adapting to the conditions of a warmer world.



The OECD has said poor nations&#8217; actual climate investment needs could total $1 trillion per year by 2025.



Ousmane said the lack of clarity on offsets would also hold up country efforts to calculate and update their national climate plans ahead of the COP29 United Nations climate summit in November in Baku, Azerbaijan.



Countries must update these &#8220;nationally determined contributions&#8221; before next year&#8217;s COP30 summit in Brazil, but are being encouraged to submit them this year.



(Reporting by Virginia Furness in London; Editing by Katy Daigle, Simon Jessop, Alexander Smith and Rod Nickel)

FILE PHOTO: Views of Tata Steel Port Talbot steel production plant in Port Talbot, Wales

West African nations call for firms to be able to offset carbon

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg" alt="" class="wp-image-493619" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-120x90.jpg 120w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-1536x1152.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/06/ZHFRG3BTB5JXRNXZVXU4QXPJNI-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A member of the Nigeria Labour Congress dances in front of the domestic airport which has been shut down as Nigeria&#8217;s main labour unions called for an indefinite strike from Monday after failing to agree to a new minimum wage with the government, in Lagos, Nigeria. June 3, 2024.REUTERS/Seun Sanni</figcaption></figure>



LAGOS/ABUJA, June 3 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s main labour unions on Monday shut down the national grid and disrupted airline operations across the country as they began an indefinite strike over the government&#8217;s failure to agree a new minimum wage.



This strike is the fourth embarked upon by the Nigerian Labour Congress (NLC) and the Trade Union Congress (TUC), two of the country&#8217;s biggest unions, since President Bola Tinubu took office last year.



The Transmission Company of Nigeria (TCN) said union members drove away operators at the country&#8217;s power control rooms and shut down at least six substations, which eventually shut the national grid at 02:19 am (0119 GMT).



Nigerian airline Ibom Air said it was suspending flights until further notice due to the strike, while another, United Nigeria, said airports across the country have been shut down and that striking workers had permitted none of its flights to operate.



Electricity and aviation unions said in a statement on Monday they had directed their workers to withdraw their services in compliance with the indefinite strike.



Since taking office Tinubu has embarked on Nigeria&#8217;s boldest reforms, which has fuelled a rise in inflation to an almost 30-year high and worsened a cost-of-living crisis in Africa&#8217;s most populous nation.



He has been under pressure from unions to offer relief to households and small businesses after scrapping subsidies on petrol, which kept fuel cheap but cost the government $10 billion last year.



Unions declared an indefinite strike on Friday after talks for a new minimum wage meant to cushion the impact of reforms collapsed. They said the strike would last until a new minimum wage was in place.



The TCN said it was making effort to recover and stabilize the national grid, but unions were obstructing grid recovery nationwide.



Unions have also demanded a reversal of an electricity tariff hike effected last month for better-off consumers who use the most power, as the government tries to wean the economy off subsidies.



On Thursday, Nigeria&#8217;s privatisation body said the country had secured a World Bank loan of $500 million for its electricity sector.



(Writing by Chijioke Ohuocha; Editing by David Goodman and Jan Harvey)

Nigerian unions shut down power grid, disrupt airlines with strike over minimum wage

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-820x547.jpg" alt="" class="wp-image-430849" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/11/3K2CS37WYNNUVIVKGJN5PCM5CM-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Nigerian President Bola Tinubu arrives for the closing session of the New Global Financial Pact Summit, Friday, June 23, 2023 in Paris, France. Lewis Joly/Pool via REUTERS/File Photo</figcaption></figure>



LAGOS, May 30 (Reuters)&nbsp;&#8211;&nbsp;Nigerian Josephine Akiga looks around her empty restaurant in Abuja, where a sole customer sits eating, longing for the days when the place was filled with people.



Business has been so tough since President Bola Tinubu took office a year ago that she sometimes lets customers pay what they have for a meal just to keep business ticking along.



&#8220;When &#8230; you have not sold anything since morning, it&#8217;s better to have that money than to allow the person to go,&#8221; said Akiga. &#8220;So you just ask the person to sit and then give him food for the money he has.&#8221;



Since taking office in May last year, Tinubu has implemented reforms including slashing fuel and electricity subsidies and devaluing the naira currency twice NGN=D1 to try to increase investment and boost output. He says the policies are necessary to put Nigeria on a long-term growth path.



But the economy is growing well short of the 6% annual expansion targeted by Tinubu, while the reforms have driven inflation to a 28-year high, worsening a cost-of-living crisis.



Analysts&nbsp;say&nbsp;economic hardship&nbsp;is&nbsp;also fuelling crime which in turn is hurting people&#8217;s livelihoods.



Bismarck Rewane, a prominent economic analyst who was appointed to Tinubu&#8217;s economic council in March, agreed with the need for economic reforms but said more attention should have been paid to their implementation.



&#8220;The reforms came too quickly but there was no concrete plan to deal with the impact these reforms would have on the people,&#8221;&nbsp;he said.



The end of the fuel subsidy, which for decades made petrol very cheap for Nigerians, has hit people particularly hard. Petrol is widely used in the country to power not only cars but also generators for small businesses and homes.



Anthony Idowu, a 47-year-old bank employee, said the cost of filling his car had nearly quadrupled to 36,000 naira ($30) since the petrol subsidy was removed&nbsp;last year.



He now runs his petrol generator at home for only four hours a day to save money even if it means sleeping without a fan in the sweltering heat of Lagos, he said.



<h2 class="wp-block-heading" id="h-vicious-cycle">VICIOUS CYCLE</h2>



The government has also been criticised for not doing enough to sort out the country&#8217;s security problem, which&nbsp;some people&nbsp;say is affecting their livelihoods.&nbsp;The government insists the security situation is improving, saying it has eliminated thousands of armed gang members and Islamist fighters.



Abdulrasheed Isa Gora, a 32-year-old petty trader and farmer in the Birnin Magaji area of northwest Zamfara state, said attacks by armed gangs were on the rise, making it difficult to farm or travel to other communities to sell his wares.



Earlier this week, he and members of his community paid 50 million naira ($42,000) to free 18 family members and some residents who were kidnapped on March 10. Some 40 others remain missing, he said.



&#8220;We are living by God&#8217;s favour, not the government&#8217;s,&#8221; said Gora.



Nigeria has long struggled with insurgency and attacks by armed gangs who kidnap for ransom in the north, where poverty levels are higher.



But data from the Armed Conflict Location &amp; Event Data Project showed the number of kidnappings doubled to 7,086 in Tinubu&#8217;s first year in office.



Security analysts say economic hardship and the allure of ransom payments are driving mass abductions.



&#8220;That could well be the case,&#8221; said Information Minister Mohammed Idris, when contacted by Reuters.



&#8220;That is why the president is encouraging everyone not to pay ransom because when you pay ransom you are going to continue on this cycle of violence,&#8221; he said.



Back in the restaurant, it was economic uncertainty that was at the&nbsp;top&nbsp;of Akiga&#8217;s worries.



From daily sales of 100,000 naira ($84) a year ago, she was hardly making 20,000 naira ($17) now and that was quickly used up buying more stock.



&#8220;Any money you make you take it back to the market,&#8221; she said.



(Reporting by MacDonald Dzirutwe in Lagos and Abraham Achirga in Abuja, additional reporting by Ahmed Kingimi in Maiduguri; Editing by Ana Nicolaci da Costa)

FILE PHOTO: Summit for a new global financing pact takes place in Paris

Hardship, insecurity cloud Nigeria president’s first year in office

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-820x547.jpg" alt="" class="wp-image-491240" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/VFKU2JNBTBIDVNPMOMLDRAUIO4.jpg 960w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Pedestrians walk in front of Ghana&#8217;s central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko</figcaption></figure>



ACCRA, May 27 (Reuters)&nbsp;&#8211;&nbsp;Ghana&#8217;s central bank held its main interest rate steady at 29%&nbsp;GHCBIR=ECI&nbsp;for the second meeting in a row&nbsp;on Monday,&nbsp;as a slide in the local cedi currency has slowed inflation&#8217;s decline.



The West African cocoa, gold and oil producer,&nbsp;which defaulted on most of its external borrowing in December 2022,&nbsp;has been restructuring its debts as it tries to emerge from its worst economic crisis in a generation.



&#8220;The latest forecast shows a slightly elevated inflation profile on account of recent exchange rate pressures,&#8221; Bank of Ghana Governor Ernest Addison told a news conference, adding that inflation was expected to fall to between 13% and 17% by the end of 2024.



Consumer inflation fell marginally last month to 25.0% year-on-year GHCPIY=ECI from 25.8% in March, but it remains well above the central bank&#8217;s 8% target with a margin of error of 2 percentage points either side.



Addison said the cedi&nbsp;GHS=&nbsp;had been partly hurt by speculative foreign currency buying but that the central bank had enough reserves to support the market.



Godfred Alufar Bokpin, professor of finance at the University of Ghana, said there was not much scope to ease monetary policy given current risks to the cedi and a general election later this year.



Last week Ghana received a draft memorandum of understanding from its bilateral creditors including China and France to restructure $5.4 billion of debt, which it is currently reviewing before signing.



Once agreed, the document will pave the way for the International Monetary Fund&#8217;s executive board to meet next month to approve a disbursement of $360 million under the country&#8217;s $3 billion bailout programme, which Addison said helped clear uncertainty.



&#8220;We are very happy and quite certain that the Fund meeting will happen in June,&#8221; Addison told Reuters on Monday.



In addition to the restructuring memorandum with official creditors, Ghana is seeking a deal with holders of about $13 billion in international bonds. It has&nbsp;restructured most of its local debt.



(Writing by Anait Miridzhanian; Editing by Bate Felix, Alexander Winning and Andrew Heavens)

VFKU2JNBTBIDVNPMOMLDRAUIO4

Ghana central bank holds rate as currency slide slows disinflation

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="555" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-820x555.jpg" alt="" class="wp-image-469888" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-820x555.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-300x203.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-133x90.jpg 133w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-768x520.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-1536x1040.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/03/QHXVUHX3MJJHRDRSFYCEORRMQ4-2-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">People walk past the Bank of Ghana in Accra, Ghana, November 28, 2018. REUTERS/Zohra Bensemra/File Photo</figcaption></figure>



ACCRA, May 24 (Reuters)&nbsp;&#8211;&nbsp;Ghana has agreed a memorandum of understanding (MoU) with its bilateral creditors, including China and France, to restructure $5.4 billion of debt, two government sources said on Friday, one-and-a-half years after the West African country defaulted.



The MoU paves the way for the executive board of the International Monetary Fund (IMF) to approve the disbursement of $360 million under Ghana&#8217;s $3 billion, three-year bailout programme, which is expected next month.



Once signed, the agreement would form the basis of a deal to restructure loans its official creditors, including China and France under the Paris Club of creditor, agreed in January.



Ghana&#8217;s Finance Minister Mohammed Amin Adam is due to hold a press briefing on Friday morning.



Ghana was the second country in Africa to default on most of its $30 billion external debt during the pandemic as the exporter of gold, cocoa and oil battled to emerge from its worst economic crisis in a generation. The first country was Zambia.



Ghana&#8217;s economy has since started to recover, with inflation easing from 54.1% in December 2022 to 25% in April 2024 and 2023 growth of 2.9% exceeding the IMF&#8217;s 2.3%.



Together with Zambia and Ethiopia, the world&#8217;s second-biggest cocoa producer is reworking its debt under the G20 Common Framework, a process set up during the pandemic to speed up debt overhauls.



However, progress has been slow, holding back the countries&#8217; economic recoveries and access to much needed overseas loans, aid and investment.



The IMF declared Ghana&#8217;s debt unsustainable in its Debt Sustainability Analysis (DSA) and is aiming for the country to restore itself to a &#8220;moderate&#8221; risk of debt distress by 2028.



This would bring Ghana&#8217;s public debt-to-GDP ratio from 88.1% at the end of 2022 to 55% by 2028.



Terms with official creditors will be of interest to Ghana bondholders, who are next in line for a deal, as they will seek an equitable solution under the comparability of treatment principle, a key element of the Common Framework for debt restructuring.



Ghana did in April find common ground with some of its biggest bondholders, including Western asset managers and hedge funds as well as regional African banks. But the IMF said that the interim deal was outside the DSA threshold and needed to be tweaked.



The regional African banks had also rejected parts of the deal, including an option to retain the original value of the bonds with a longer maturity and lower coupon.



The government said it was working to satisfy the IMF&#8217;s requirements.



The country concluded a domestic debt restructuring in October, during which 206 billion Ghanaian cedi ($17.5 billion) was swapped for longer-dated, lower-interest debt, resulting in 61 billion Ghanaian cedi of savings, then Finance Minister Ken Ofori-Atta said.



(Reporting by Maxwell Akalaare Adombila; Writing by Sofia Christensen, Karin Strohecker and Portia Crowe; Editing by Alison Williams and Subhranshu Sahu)

People walk past the Bank of Ghana in Accra

Ghana seals debt restructuring deal with official creditors, sources say

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg" alt="" class="wp-image-486652" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GettyImages-1763140582-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">SAINT PETERSBURG, RUSSIA &#8211; 2023/11/02: The national flag of the Federal Republic of Nigeria as a participating country at the 12th St. Petersburg International Gas Forum (SPIGF 2023). (Photo by Maksim Konstantinov/SOPA Images/LightRocket via Getty Images)</figcaption></figure>



ABUJA, May 21 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s central bank raised its benchmark lending rate&nbsp;by 150 basis points to&nbsp;26.25% from 24.75%&nbsp;NGCBIR=ECI, in a decision announced on Tuesday.



Analysts had widely predicted another hike given inflation has continued to soar and the local naira currency&nbsp;NGN=D1&nbsp;has been highly volatile.



The decision is the third rate increase this year, after hikes of 200 basis points in March and 400 basis points in February.



Inflation&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3HI4A6&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reached</a>&nbsp;a 28-year high of 33.69% year-on-year in April&nbsp;NGCPIY=ECI, spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira.



(Reporting by Chijioke Ohuocha, Elisha Bala-Gbogbo, MacDonald DzirutweEditing by Bate Felix)

The national flag of the Federal Republic of Nigeria as a

Nigeria’s central bank raises benchmark rate to 26.25%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="541" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg" alt="" class="wp-image-487399" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-820x541.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-300x198.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-136x90.jpg 136w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-768x507.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-1536x1014.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/XHKXHIOUFZIJZAGULBLYUNLOQA-1-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Workers offload boxes with Oxford/AstraZeneca vaccines as the country receives its first batch of coronavirus disease (COVID-19) vaccines under COVAX scheme, at the international airport of Abuja, Nigeria March 2, 2021. REUTERS/Abraham Archiga</figcaption></figure>



ABUJA, May 16 (Reuters)&nbsp;&#8211;&nbsp;Dubai&#8217;s Emirates airline will resume flight schedules to Nigeria from Oct. 1, it said on Thursday, ending a close to two-year halt to flights.



The United Arab Emirates (UAE) stopped issuing visas to Nigerians in 2022 after Emirates suspended flights between the nations because of an inability to repatriate funds from Nigeria.



&#8220;We are excited to resume our services to Nigeria. We thank the Nigerian government for their partnership and support in re-establishing this route and we look forward to welcoming passengers back on board,&#8221; Adnan Kazim, the airline&#8217;s deputy president and chief commercial officer, said in a statement.



The Lagos-Dubai service has been popular with Nigerian customers in the past and Emirates said it hopes to reconnect travellers to Dubai and onwards to more than 140 destination with its resumption of services.



Nigerian President Bola Ahmed Tinubu and UAE President Mohamed bin Zayed Al Nahyan met last September in Abu Dhabi and discussed the lifting of the visa ban and new investments into Africa&#8217;s most populous country.



The resumption of schedules also includes cargo flights, the statement said.



(Reporting by Ope Adetayo; Additonal reporting by Elisha Bala-Gbogbo; Editing by Jason Neely and David Goodman)

Oxford/AstraZeneca vaccines against COVID-19 arrive in Abuja

Emirates to resume Nigeria flights after nearly two years

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="429" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg" alt="" class="wp-image-486962" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-820x429.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-160x84.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-768x402.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY-1536x804.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/05/GBZMQIYKR5O7TASYIDE6U6N6UY.jpg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /></figure>



ABUJA, May 15 (Reuters)&nbsp;&#8211;&nbsp;Nigeria&#8217;s headline consumer inflation&nbsp;NGCPIY=ECIaccelerated to a new 28-year high in April, hitting 33.69% year-on-year, up from 33.20% in March, statistics agency data showed on Wednesday.



Inflation in Africa&#8217;s most populous nation has been spurred by President Bola Tinubu&#8217;s administration&nbsp;slashing petrol and electricity subsidies and twice devaluing the local naira currency&nbsp;NGN=D1.



The central bank has raised interest rates twice this year, including its largest hike in around 17 years, as it struggles to contain the price pressures.



The central bank governor has indicated that rates will stay high for as long as needed to bring down inflation. The bank holds&nbsp;another rate-setting meeting next week.



Areport by the National Bureau of Statistics showed the food and non-alcoholic beverages category continued to be the biggest contributor to inflation in April.



Food inflation&nbsp;NGFINF=ECI, which accounts for the bulk of the inflation basket, reached 40.53% in annual terms, against 40.01% in March.



Price pressures have left millions of Nigerians grappling with the worst cost of living crisis in decades as they struggle to meet their basic needs.



To ease the pressure on government workers, Tinubu has announced a salary hike of up to 35% for civil servants. To help vulnerable households his government has also restarted a direct cash transfer programme and has distributed at least 42,000 tons of grains such as corn and millet.



(Reporting by Elisha Bala-Gbogbo; Additional reporting by Mohd Edrees; Editing by Alexander Winning and Gareth Jones)

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Nigeria inflation scales new 28-year peak in April

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West Africa

West Africa’s ECOWAS decries lack of progress with junta states

Nigeria beats rivals for bid to host new Africa Energy Bank

As Nigeria’s gasoline debt hits $6 billion, some traders back out, say sources

Ghana reaches agreement in principle on $13 bln bond rework

Ghana, bondholders reach agreement in principle to restructure $13 bln debt, sources say

Ghana’s economy grew 4.7% in the first quarter of 2024

Ivory Coast expects threefold oil output increase by 2027

Ghana, creditor panel agree on debt restructuring, paving way for IMF cash

Nigeria’s president says economic reforms will continue despite hardships

West African nations call for firms to be able to offset carbon

Nigerian unions shut down power grid, disrupt airlines with strike over minimum wage

Hardship, insecurity cloud Nigeria president’s first year in office

Ghana central bank holds rate as currency slide slows disinflation

Ghana seals debt restructuring deal with official creditors, sources say

Nigeria’s central bank raises benchmark rate to 26.25%

Emirates to resume Nigeria flights after nearly two years

Nigeria inflation scales new 28-year peak in April

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