TDB launches a $100 million facility aimed at agricultural growth in Africa. The Trade and Development Bank (TDB), a financial institution focused on Africa, has partnered with British International Investment (BII) to establish a $100 million finance facility.

TDB Launches $100 Million Facility in Africa

The Trade and Development Bank (TDB) and British International Investment (BII) have joined forces to launch a $100 million finance facility aimed at bolstering economic resilience, promoting agricultural development, and addressing food security challenges through vital trade finance support.

This initiative comes at a crucial time for Africa, as the continent grapples with issues like inflation, currency depreciation, and mounting debt. Over the years, TDB has played a significant role in financing trade, fostering sustainable growth, and advancing regional integration in Africa through various financial services.

In March 2024, TDB extended a three-year $2 million term loan to MPower Ventures Zambia Limited via the Trade and Development Fund (TDF) to enhance access to modern and affordable energy solutions in Zambia.

TDB Aims To Provide Additional Financial Assistance to Local Businesses and Financial Institutions
With the support from BII, TDB aims to provide additional financial assistance to local businesses and financial institutions operating in key African markets, thereby contributing to economic development and addressing pressing challenges.
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Andrew Mitchell, UK Minister of State for Development and Africa, highlighted that this investment underscores the UK Government’s commitment to promoting economic and agricultural growth in Africa. By lowering trade barriers and helping businesses access resources, the initiative aims to spur expansion and tackle food security concerns.

The Collaboration between BII and TDB

The collaboration between BII and TDB reflects their shared objective of empowering critical economic sectors, particularly small and medium-sized enterprises, to foster inclusive growth across Africa.

Inflation Rates in African Countries in Recent Years and Its Economic Effect
Inflation rates in African countries have been notably high in recent years. Zimbabwe and Sudan experienced significant inflation increases in 2023, with Nigeria also grappling with rising inflation rates.

To address such challenges, the World Bank provided TDB with a $300 million facility in February 2024 to support private sector projects in renewable energy and clean cooking in eligible member countries.

Reference - https://www.makeoverarena.com/tdb-launches-100-million-facility-aimed-at-agricultural-growth-in-africa/

Organized Labor Fight against New Electricity Tariff Hikes for Urban Customers

Organized labor fight against new electricity tariff hikes for urban customers. The Nigerian government, through the Nigerian Electricity Regulatory Commission (NERC), has announced a big increase in electricity prices for customers in Band A.

Organized Labor Fight against Electricity Tariff Hike

The new rate is ₦225 per kilowatt-hour (kWh), which is a 240% increase from the previous rate of ₦68 per kilowatt-hour (kWh).

Organized Labor Fight against Electricity Tariff Hikes
The Nigerian Electricity Regulatory Commission (NERC) has announced a significant increase in electricity tariffs for Band A customers, who typically receive up to 20 hours of power supply daily. This group makes up about 15% of Nigeria’s over 12.82 million registered electricity consumers.

The price hike has caused concern among organized labor and manufacturers across the country. The Nigeria Labor Congress (NLC) and the Trade Union Congress (TUC) have voiced their opposition, warning of negative impacts on the economy.

They fear that the increase could lead to business closures, worsen the economic downturn, and hinder the growth of small and medium enterprises (SMEs) nationwide.

[b]Doubts Surrounding the Whole Development
[/b]There are doubts about whether Band A customers actually receive the promised 20-hour daily power supply. NLC spokesperson Benson Upah criticized the hike, suggesting that only international financial institutions like the World Bank and the International Monetary Fund (IMF) would benefit from such actions.

[b]The Reason for the Price Hike
[/b]NERC Vice Chairman Musiliu Oseni explained that the government could no longer afford the subsidy on electricity and needed to reduce the projected ₦2.9 trillion subsidy expenditure for 2024.

Consequently, Band A consumers affected by the tariff increase will no longer receive government subsidies for their power bills, effective April 3, 2024.

[b]The Tariff Adjustment Would Not Affect Customers in Other Categories
[/b]NERC assured that the tariff adjustment would not affect customers in other categories, such as Bands B, C, D, and E, at least for now. However, Oseni mentioned that some Band A consumers might be downgraded to lower bands due to the failure of power distribution companies to meet the required 20-hour electricity supply.

“We have over 3,000 Discos feeders. There are over 875 Band A feeders, but upon reviewing the feeders’ performance, the commission has reduced it to under 500 feeders now, which qualify as feeders that currently meet the 20-hour average service.”

The Ministry’s Strategy to Settle Outstanding Debts Owed To Power Generation and Gas Supply Companies
In March 2024, Bayo Adelabu, Nigeria’s Minister of Power, revealed the ministry’s [size=1pt]https://www.goody.com.ng[/size] strategy to settle outstanding debts owed to power generation and gas supply companies. This initiative aims to alleviate financial burdens and enhance power generation levels across the country.

Reference - https://www.makeoverarena.com/organized-labor-fight-against-new-electricity-tariff-hikes-for-urban-customers/