Africa on the Spot: IMF, Uganda Close $1B Deal as Tanzania Joins EAC’s One Network Area

Uganda has reached a staff-level agreement for a $1 billion program with the International Monetary Fund (IMF) under a three-year extended credit facility, to complements its shaky finances.

According to the IMF, Uganda applied for a loan in May to bolster its unstable finances resulting from the negative impacts of the COVID-19 pandemic on its economy.

“The IMF-supported program supports the next phase of the COVID-19 response and strengthens the fundamentals of a more inclusive private sector-led growth,” said Amine Mati, head of the IMF team that held virtual missions to Uganda earlier this year.

The lender noted that strengthening governance and budget transparency will be key to fostering public sector efficiency while preparing the ground for sound management of oil revenues.

Last year, the Fund loaned Uganda over $490 million. Read More Here

Tanzania joins EAC’s One Network Area for lower cross-border call tariffs

Tanzania has finally joined the East African Community’s One Network Area for lower cross-border call tariffs. The network guarantees cheaper calls across the EAC thanks to the harmonized calling rates.

What this means is that phone call charges while roaming in Kenya, Rwanda, South Sudan, Uganda, and Tanzania will be eliminated. The upside includes easier and cheaper communication bound to promote and enhance trade across the bloc.

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Also read: East Africa Lost $4.8 Billion In Tourism And Hospitality An 2020

Finding alternative financing options for African economies

The effects of the COVID-19 pandemic on most economies in Africa has brought many countries face to face with recession. And with no clear end in sight, some have predicted that the road to recovery will make do with a consolidated but creative economic model.

But what alternative financing options are there for the economies in the continent? Do these opportunities provide an avenue for laying the foundation for a green, resilient, and inclusive future given that many countries trying to rebuild their economies after COVID-19?

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SA’s unemployment rises to a 13-year high

South Africa’s unemployment rate increased by 0.1 percentage points pushing it up to a 13-year high after rising slightly from 32.5 percent in the fourth quarter of 2020 to 32.6 percent in the first quarter of 2021.

According to the data from Statistics South Africa (StatsSA) released on Tuesday, this was the highest unemployment rate since 2008 during the global financial crisis. The report went ahead to state that the number of unemployed persons rose by 8 000 to 7.2 million while employment fell by 28 000 to 15 million during the period.

Officially, the unemployment rate among youth (15-34 years) was 46.3 percent in the first quarter. It, however, remained elevated at 9.3 percent among university graduates.

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Also read: Impact Of Covid-19 On Agriculture And Manufacturing