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IMF Concludes Staff Mission to Burkina Faso
OUAGADOUGOU – An International Monetary Fund (IMF) team led by Ms. Laure Redifer visited Ouagadougou from March 14-26 to carry out discussions with the Burkinabè authorities on the first review of their economic and financial program supported by the IMF under the Extended Credit Facility (ECF) and a surveillance review required every two years.
The mission met with Mr. Luc-Adolphe Tiao, Prime Minister; Mr. Lucien Bembamba, Minister of Economy and Finance; Mr. Salif Kaboré, Minister of Mines; Ms. Clotilde Ki-Nikiéma, Minister of the Budget; and Mr. Charles Ki-Zerbo, National Director of the Central Bank of West African States, as well as other senior officials, parliamentarians, private sector and civil society representatives, and development partners.
At the end of the mission, Ms. Redifer, issued the following statement in Ouagadougou:
“Burkina Faso has experienced several years of rising and less volatile growth despite numerous shocks, thanks to strong economic and structural reform policies. Despite slight downward revisions, growth remains strong for the period 2013-14. Estimates for 2013 growth were revised to 6.6 percent, based on flat growth in grain production due to erratic rainfall. For 2014, growth is projected at 6.7 percent, and could be higher in case of good rainfall and strong domestic demand. These more cautious projections reflect the outlook for continued subdued international prices for gold and cotton, which are also expected to cause a further deterioration in external balances.
The deterioration would be worse in the absence of stronger exports of cash crops (cotton and sesame) and new minerals (zinc). In December, inflation was 0.5 percent, influenced primarily by lower food prices than a year previously, and should remain below 2.0 percent in 2014.
“Revenue collection was somewhat lower than anticipated in 2013. This, combined with delayed disbursements of external budget support, required additional domestic financing to maintain planned spending, as well as additional spending undertaken in the course of the year, including 1 percent of GDP in additional social spending undertaken in the second half of the year. Revenue shortfalls and additional transfers to public enterprises meant that two end-December 2013 targets of the IMF-supported program were not met, although all other quantitative targets were met and all structural reforms for end-January 2014 were implemented.
“For 2014, large spending increases linked to wage bill negotiations and additional social measures total approximately 2 percent of GDP. To finance these expenditures and maintain the fiscal deficit around 3 percent of GDP, the authorities are identifying spending offsets in other non-priority areas. In addition, they are considering other measures to ensure sustainability of the wage bill and the budget over the medium term, and preserve sufficient resources for valuable investments in people and infrastructure.
“The mission particularly encouraged the authorities to make more transparent budgetary transfers to support the operations of public enterprises facing fixed consumer prices. These untargeted subsidies constitute a growing share of budgetary resources that could be better directed to social spending and investment to create jobs and growth.
“In discussions with the authorities, the mission expressed concern that the new Mining Code had not been passed by Parliament by the end of the year. The mission strongly urged that the new Mining Code be formulated to ensure optimal resource mobilization needed to finance growth-enhancing investment and to ensure that the majority of Burkinabe – in this generation and in those to come — benefits from the extraction of these non-renewable resources.
“The mission had fruitful and collaborative discussions with the authorities on these and other topics. Discussions will continue in the coming weeks to finalize the policy framework for 2014 that would form the basis for completion of the first review of the program supported by the IMF Extended Credit Facility and regular surveillance under the IMF’s Article IV. “
In a sharp turn of events, the Nigerian Naira took a significant tumble on Tuesday, plunging to N1,416.57 against the US dollar at the official market.
This staggering drop of N62.36 from the previous trading day represents a 4.60 percent loss, sparking concerns among investors and analysts alike.
Data from the FMDQ Exchange, overseeing the Nigerian Autonomous Foreign Exchange Market (NAFEM), revealed this unsettling trend.
Despite the currency’s downward spiral, trading activity surged, with the daily turnover soaring to $160.77 million, compared to Monday’s $84.83 million.
Meanwhile, at the Investor’s and Exporter’s (I&E) window, the Naira’s performance remained volatile, trading between N1,445 and N1,301 against the dollar, underscoring the currency’s precarious position in the market.
The management of Dangote Cement Plc., Ibese Plant has assured that it would continue to complement the efforts of the Ogun State Government in the development of its host communities through capacity building for the people, especially the youths.
In a statement, the company declared its commitment to development for the prosperity of the people and host communities for which it is placing a premium on the developmental needs of the communities and empowerment of their indigenes.
During a capacity development workshop for Host Community Representatives, General Manager, Human Asset Management/Admin, Aina Olugbenga, said, Dangote Cement remained committed to implementing value-adding empowerment programs to uplift the people and develop the host communities.
The workshop themed: “Team Building, Inclusivity and Stewardship, a panacea to effective Community Representatives” according to him, was to equip the Community reps with the right skills to offer quality representation for their people. He stated: this capacity building workshop is aimed at developing and strengthening the skills, instincts, and abilities of the communities through their representatives adapt and thrive in a fast-changing world.
Olugbenga noted that the workshop is part of the management’s strategy to improve relationships with the host communities and urged the participants to leverage the knowledge acquired from the workshop to improve service delivery to their people and the Cement plant.
According to him, Dangote Cement, Ibese Plant is committed to building the capacity of the people and institutions in the communities by identifying skill gaps and partnering to up their skills for economic prosperity. This, he stated, was in anticipation that other stakeholders will continue to play their part by partnering and supporting the Company to ensure peaceful co-existence and shared prosperity for all.
Said he, “Apart from reciprocating the good gesture of Dangote Cement by ensuring peace at all times and keeping an open and trusting mind towards the organization, we also desire from our community leaders and representatives who are present here, the ownership of all Social Investment programme, be it training or infrastructure because they are meant for the betterment of our people.”
On behalf of the Community Representatives, Hon. Dayo Ogunyinka thanked the Dangote Cement management for the workshop while assuring continued commitment to effective, efficient and selfless discharge of their roles and responsibilities to their various communities and the Plant.
The Nigeria Deposit Insurance Corporation (NDIC) has announced revisions to the Maximum Deposit Insurance Coverage for banks operating within the country.
NDIC’s Managing Director, Bello Hassan, disclosed the updated coverage benchmarks during a media briefing in Abuja on Thursday.
The coverage for Deposit Money Banks has been increased from N500,000 to N5 million, for Microfinance Banks from N200,000 to N2 million, for Primary Mortgage Banks from N500,000 to N2 million, and for Mobile Money Operators subscribers’ pass-through from N500,000 to N5 million per subscriber.
Hassan underscored that the objective of the update is to enhance depositor safety, foster public trust, promote the inclusivity of financial services, and ensure the overall stability of the financial sector.
More to follow.. . .. .
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