![]() This was also reflected in the growth of purchasing activity, which saw an increase for the first time in five months. Firms sought to build workforce sizes and support higher activity, reflecting a more positive outlook for the private sector. Job Creation and Purchasing Activity Increaseĭespite the challenges posed by price pressures, the survey data indicated a quicker rate of job creation in August. These factors have weighed on economic performance and contributed to the inflationary pressures experienced by businesses. The high cost of raw materials was attributed to the sustained weakening of the Kenya Shilling against the US Dollar, higher taxation, and escalating fuel prices at the pump. This has led to the fastest increase in selling prices since the survey began, as businesses passed on higher purchase prices to clients to maintain stable margins. Raw material prices continued to rise at a historically strong pace, causing the sharpest increases since June 2022. (Read: PMI Reports Rise in Kenyan Businesses’ Confidence) Price Pressures Offset Improvement in Business ConditionsĪlthough there was an improvement in business conditions, price pressures remained a pressing concern. Despite these positive trends, the rate of growth was only fractional, as the negative impact of price increases offset the improvements arising from reduced political unrest and stronger demand conditions. ![]() Inflows of new work also expanded, ending a six-month sequence of decline. Surveyed companies in Kenya reported that greater political stability had helped to boost demand and lead to higher activity, particularly in the services and manufacturing sectors. However, it is a significant improvement from the previous months of decline. While this indicates an expansion in business conditions, the growth was only marginal. The PMI, which measures the health of the private sector, rose to 50.6 in August from 45.5 in July. Private Sector Activity Ticks Up in August This positive development can be attributed to the relatively calm political environment and the initiation of formal talks between the Kenya Kwanza administration and the opposing Azimio political outfit. The August Stanbic Bank Kenya Purchasing Managers Index (PMI) reveals that the private sector recorded an expansion in business conditions for the first time since January. Kenya’s private sector activity has shown signs of improvement, signaling a potential recovery in the country’s economy. The African Development Bank’s share of renewable energy projects in the electricity financing portfolio has increased from 14% between 20, to 70% between 20. The bank’s intervention complements the support already provided to the Ivorian energy sector through productive investments in the Côte d’Ivoire-Sierra Leone-Liberia-Guinea Interconnection Project (CLSG), approved in 2013 as well as the Reinforcement of Transmission and Distribution Grids (PRETD) Project approved in 2016. The commissioning of the Singrobo-Ahouaty hydroelectric dam will reinforce Côte d’Ivoire’s status as an electricity exporting country in the sub-region. It is also consistent with the Country Strategy Paper for Côte d’Ivoire (2013 – 2017) as well as the Bank’s Ten Year Strategy. The construction of the Singrobo-Ahouaty Hydropower Plant Project harmonizes with the African Development Bank’s High5 strategic priorities, including the “Light up and power Africa” pillar. The project will also connect communities in the vicinity to the power grid, reduce fossil fuel dependency, and environmental pollution. ![]() Another expected value add is the easy evacuation and marketing of agricultural products to local market. In the long term, the road project will facilitate the movement of people in neighboring villages, and reduce travel time from one and half hours to just 10 minutes. The loan, granted under the private sector window of the African Development Bank, also aims to promote and support Ivorian private entrepreneurship, through financial support and expertise provided to the local promoter of the hydroelectric power station.įor the African Development Bank, the project will create jobs and ancillary infrastructure, including the asphalting of a 4-km road axis close to the plant. Located at about 148 km north of Abidjan, the Singrobo-Ahouaty Hydropower Plant Project, to be commissioned in 2021, will support the thermal production of electricity during periods of high demand as well as diversify the country’s energy mix.Ĭôte d’Ivoire intends to increase its share of renewable energy from 15% to 42% by 2021. The African Development Bank, on Wednesday, 6 September 2017, approved a €50 million funding loan to support a 44-megawatt hydroelectric power project in Abidjan, Côte d’Ivoire to boost the country’s elctricity production. ![]()
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