18th April 2024
Good morning. A World Bank and African Development Bank partnership aims to electrify millions, while inflationary easing prompts rate cut conversations in South Africa and Namibia. Acre Impact Capital's raises $100mn for African climate fund, while Italian Premier Giorgia Meloni's visits Tunisia for the fourth time in a year. Here is your Roosters Crow.
World Bank and AfDB to Power 300 million
The World Bank Group and African Development Bank Group have joined forces to provide electricity access to 300 million Africans by 2030. The World Bank aims to connect 250 million through renewable energy or the grid, with the African Development Bank supporting an additional 50 million. Access to electricity is crucial for development, with 600 million lacking access. World Bank President Ajay Banga highlights the importance of partnerships and investments. The initiative demands $30 billion in public investment, with significant private sector opportunities, emphasizing the essential role of electricity in economic growth.
Rand Steady amid Inflation Ease
South Africa's rand held steady as March inflation data met expectations, with the currency trading at 19.0475 to the U.S. dollar. Analysts suggest the central bank is unlikely to cut interest rates soon, expecting inflation to hover between 5.0-5.5%. Despite retail sales dipping 0.8% in February, South Africa's 2030 government bond strengthened, yielding 10.705%. Meanwhile, Namibia maintains its repo rate at 7.75% as inflation eased to 4.5% in March driven mostly by food and transport prices. The Namibian dollar's peg to the rand remains a priority for its central bank.
Acre Impact Capital Raises $100 Million
Former BNP Paribas bankers have amassed nearly $100 million for Acre Impact Capital, targeting climate-aligned projects in Africa. Acre aims to bridge the continent's $100 billion annual infrastructure funding gap by providing crucial unsecured finance for export projects. Export credit agencies typically guarantee most loans, but banks are hesitant due to high capital charges. Acre's fund, backed by European Investment Bank and commercial lenders, seeks to mobilize $5.60 of private capital for every dollar invested. Export credit agencies are vital for emerging market financing, while multilateral banks provide additional support.
Italian Premier Visits Tunisia Again
Italian Premier Giorgia Meloni visited Tunisia, acknowledging it can't be a migrant "dumping ground." Visiting for the fourth time in a year she praised joint efforts to combat human traffickers and signed agreements under Italy's "Mattei Plan" for Africa. The accords included education initiatives and 50 million euros for renewable energy. Meloni emphasized fighting modern-day slavers but avoided migration tensions. Tunisian President Kais Saied, rejecting the "border guard" role, opposes migrant centers. Despite EU pledges, Tunisia's bailout standoff delays aid, including migration support. Migrant interceptions rise, with Tunisia resisting being Europe's migrant buffer.
