Bangladesh to receive $1.3 billion under third and fourth reviews, IMF says
The IMF has approved a $1.33 billion disbursement to Bangladesh following a review of its economic programs. This includes $884 million under the ECF and EFF, and $453 million under the Resilience and Sustainability Facility. An additional $567.2 million SDR augmentation was also approved to address external financing needs amid macroeconomic pressures like high inflation and low growth.
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The International Monetary Fund said on Monday that Bangladesh will have access to $1.33 billion as the fund has concluded a combined third and fourth review of the country under three facilities.Bangladesh will have immediate access to $884 million under the IMF's Extended Credit Facility and Extended Fund Facility, and receive another $453 million under the Resilience and Sustainability Facility, the fund said.IMF also approved an augmentation of 567.2 million special drawing rights or SDRs under its ECF and EFF arrangements with a six-month extension.Bangladesh had requested the augmentation in May to address rising external financing needs and support macroeconomic stability."Bangladesh's program performance has been broadly satisfactory despite the difficult political and economic context and increased downside risks," the IMF said in a statement.The move comes amid persistent macroeconomic pressures, including high inflation, low growth and an external financing gap.Bangladesh turned to the IMF in 2023 for the $4.7 billion bailout as its foreign reserves were pressured by a global surge in commodity prices triggered by Russia's invasion of Ukraine, straining its ability to pay for key imports of fuel and gas.
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Business Standard
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- Business Standard
Bangladesh pays $384 mn to Adani Power to clear major portion of power dues
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Indian Express
a day ago
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India-Africa partnership for agricultural development and food security
— Samir Bhattacharya Amid rising challenges such as food insecurity, climate change, and the urgent need for agricultural transformation, the India-Africa partnership in agriculture and food security has become increasingly vital. The two countries have a long history of collaboration in this sector. Although agriculture is a backbone for industrialisation and poverty alleviation in Africa, it remains highly vulnerable to climate risks, weak infrastructure and limited access to finance and technology. Over the past decades, extreme weather events, including droughts, erratic rainfall, heat waves, and storms, have severely affected African agriculture. Between 1970 and 2020, droughts and heavy rain were the most frequent climatic threats, especially as much of Africa's agriculture depends on rainfall rather than irrigation. These unpredictable weather patterns cause sharp declines in productivity. Compounding this, farmers often lack access to modern infrastructure, reliable market data, financial services, and agricultural extension support. The consequences of climate change extend beyond farmers to the entire agricultural value chain, including processors, distributors, and consumers. Addressing these challenges requires an integrated, value chain–based approach that supports climate adaptation and mitigation to ensure competitiveness and sustainability. Africa faces a paradox. While agriculture employs nearly 65 per cent of the workforce, its contribution to the continent's GDP remains low, about 15 per cent. Additionally, Africa heavily depends on food imports. Since 2000, food imports in Sub-Saharan Africa have surged relative to domestic production. Until last year, the continent imported around $50 billion worth of food each year, and with conflicts across the world, this figure is poised to reach $90-$110 billion by the end of this year. Africa's dependence on food imports renders the continent particularly susceptible to external shocks. For example, the COVID-19 pandemic and the Russia-Ukraine conflict severely disrupted Africa's food supply chains. The Russia-Ukraine war, which interrupted global exports of wheat and fertilisers, led to a substantial increase in food prices across African markets. According to the International Monetary Fund (IMF), between 2020 and 2022, food prices in sub-Saharan Africa surged by nearly 24 per cent. Consequently, addressing post-harvest losses that frequently exceed 30 per cent and advancing climate-smart agricultural practices are essential to revitalise the sector and create sustainable employment opportunities for Africa's expanding youth population. Recognising the importance of agriculture, the African Union (AU) and the African Development Bank (AfDB) have prioritised agricultural development through flagship initiatives. One of AU's 'High-5' agenda, the 'Feed Africa' initiative aims to transform agriculture into a business by adding value to commodities. The initiative also seeks to lift 320 million people out of hunger while unlocking Africa's agribusiness potential, estimated to exceed $100 billion by the end of this year. Similarly, the Comprehensive Africa Agriculture Development Programme (CAADP), under Agenda 2063, targets hunger elimination and poverty reduction by promoting sustainable land and water management, improving market access, increasing food availability, and advancing agricultural research and technology transfer. India has become a strategic partner for Africa in its agricultural transformation. Although the partnership evolved gradually, significant growth has been witnessed in cooperation in recent years in areas such as agricultural development, food processing, training, technology transfer, and private investment. 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ZimGold invested $40 million in Zimbabwe's edible oil and margarine production, employing over 500 people. Varun Beverages committed $250 million towards bottling plants and puree processing facilities in Zimbabwe. Raha Cooking Oil opened a processing plant in Norton, Zimbabwe. Indian firms like the Asian Tea Company, Pure Diets, Rajarambapu Group, and HK Jalan Group are exploring further investments in commercial agriculture in the region. Further, India's agricultural engagement in Africa increasingly involves trilateral cooperation with international agencies such as USAID, the UK's Department for International Development (DFID), and the Supporting India's Trade Preferences for Africa (SITA) programme. For example, through a tripartite agreement with the Food and Agriculture Organization (FAO), India sent agricultural experts to Lesotho to support improvements in food security and irrigation planning. 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By combining India's agricultural expertise with Africa's vast natural and human resources, this partnership can become a cornerstone for feeding the future, reducing hunger, and advancing economic prosperity in both continents. Why has the India-Africa partnership in agriculture and food security gained greater significance in recent years? How do shared challenges like climate change and food insecurity shape the strategic importance of India-Africa cooperation? How have Indian Lines of Credit (LoCs) been used to build agricultural infrastructure and capacity in Africa? What is the significance of India's private sector investment in food processing and agri-business in Africa? How has grassroots collaboration, such as SEWA's women-to-women empowerment programs, contributed to rural development in Africa? Read other articles from the series Conflicts in Africa Conflicts in Africa | The Sahel crisis and implications for India Conflicts in Africa | India's growing role in Africa's development Conflicts in Africa | Rising tensions in the Great Lakes Region Conflicts in Africa | Instability in Great Lakes region and implications for India Conflicts in Africa | Sahel's strategic drift towards Russia (Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.) Share your thoughts and ideas on UPSC Special articles with Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
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- Business Standard
India's forex reserves dip by $1.01 bn to $697.93 bn in week to June 20
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