4 African Business January 2017
IMF demands Mozambique concessions The IMF has demanded more fiscal consolidation from Mozambique in return for a funding package. The fund said that government wage bill reductions, the elimination of subsidies and the curtailment of tax exemptions would be required to make progress in talks. The IMF halted support for the country in April after the discovery of over $1.4bn of secret loans, a number which has since risen.
$552m Ghana power plant launches Ghanaian power firm Amandi Energy has reached financial close and begun construction on a $552m power plant in Aboadze. The 200MW plant is expected to provide power for up to 1m homes and will sell power to the Electricity Company of Ghana under a 25-year power purchase agreement. The plant will be fuelled with light crude oil, but will transition to gas.
RAMAPHOSA SUGGESTS LEADERSHIP BID South African deputy president Cyril Ramaphosa (above right) has given the first sign that he may stand for president. The former union leader and mining magnate told radio station Power FM that he is “available to stand.” “It would be very humbling to get into a key position like that, to lead,” he said. Opposition factions within the ANC are looking for a figurehead to take on Jacob Zuma at next year’s party congress, where he hopes to anoint a successor.
Green tech could boost Uganda growth Uganda could boost its economy by 10% by 2040 if it adopts a green growth model, according to a government report. The research argues that 23 green interventions, in areas ranging from agriculture to industry, energy and urban infrastructure could create 4m extra jobs and reduce greenhouse gases by 28%. The report says that policymakers will need to use new technologies to control emissions, which are expected to double even under the model.
Buhari announces ambitious budget Nigeria’s President Buhari predicts that aggregate revenues to fund the budget will be 28% higher than 2016. Unveiling his 2017 budget, Buhari said that the figure was based on projected oil output of 2.2m barrels a day and a benchmark crude oil price of $42.5 per barrel anchored by an exchange rate of N305 to the dollar. Capital Economics said that the budget is “overly ambitious” and “unlikely to be realised.”