News Guide Africa

Tag: international monetary policy

  • Springfield refutes ACEP’s Afina Field appraisal discrepancy claims

    Springfield

     

     

    Springfield Exploration and Production Limited has denied recent assertions made by Benjamin Boakye, Executive Director of the Africa Centre of Energy Policy (ACEP), regarding an alleged contradiction in the company’s appraisal of the Afina field.

     

    The claims arose during the ongoing International Monetary Fund and World Bank Annual Meetings in October 2024.

     

    Mr. Boakye suggested in a recent interview that Springfield’s latest appraisal report conflicted with the original data presented to justify the unitisation of the Afina field.

     

    However, Mr Kevin Okyere, Chief Executive of Springfield, addressed the media to clarify the company’s position.

     

    Mr Okyere stated that Springfield had only just begun its appraisal programme and had not yet gathered the necessary data to produce an official report.

     

    He dismissed ACEP’s claims as “blatantly false,” and added that no new appraisal report existed at this stage.

     

    “There have been recent media reports implying that Springfield has completed an appraisal of the Afina field and that this report contradicts the original data. This is blatantly false,” Mr Okyere said.

     

    The CEO further revealed that Springfield had formally requested that Mr Boakye retract his comments and issue an apology, warning of potential legal action if he failed to comply.

     

     

    “We have just commenced implementation of our appraisal programme and are yet to acquire the relevant data, process it, and submit our appraisal report,” Mr Okyere added.

     

    Springfield Exploration and Production Limited and its partners GNPC and EXPLORCO made the Afina field discovery around five years ago. It followed the successful drilling of the Afina-1x Well at the West Cape Three Points Block 2 offshore.

     

    Following the discovery, Springfield became involved in a dispute with Eni over the unitization of the Afina and Sankofa fields.

     

    The appraisal of the Afina discovery was deferred pending the outcome of this unitization dispute.

     

    A subsequent arbitral tribunal ruling directed all parties involved to submit and conduct an appraisal programme by their Petroleum Agreement.

     

     

     

  • IMF predicts global inflation decline by 2025

     

    Inflation

     

    The International Monetary Fund (IMF) has declared that the global battle against inflation is nearing victory, with inflation projected to fall significantly by 2025.

     

    Mr Pierre-Olivier Gourinchas, the IMF’s Chief Economist, said global headline inflation, which peaked at 9.4% in the third quarter of 2022, is expected to drop to 3.5% by the end of next year.

     

    Speaking at the release of the World Economic Outlook during the 2024 IMF and World Bank Annual Meetings in Washington, DC, Mr. Gourinchas noted that most countries were now seeing inflation within their central banks’ targets.

     

    For 2024, the IMF has forecasted a global inflation rate of 5.8%, which is set to decline further to 3.5% in 2025.

     

    “The decline in inflation without a significant recession is a major achievement,” he remarked, crediting the global economy’s resilience, which is expected to maintain steady growth at 3.2% for both 2024 and 2025.

     

    Mr. Gourinchas attributed the disinflation to the easing of supply and demand shocks that had previously driven inflation, along with improvements in labour supply, particularly in advanced economies, where immigration played a key role.

     

    He also pointed to the decisive impact of monetary policy in managing inflation expectations.

     

    However, the IMF’s chief economist warned that risks remain.

     

    He highlighted the potential for regional conflicts to disrupt commodity markets, and expressed concerns over shifts in trade and industrial policies that could negatively impact economic output.

     

    Such risks, he noted, could tighten global financial conditions and derail the progress made in combating inflation.

     

    To mitigate these risks and strengthen global growth, Mr. Gourinchas proposed a “policy-triple-pivot.”

     

    This would involve a cautious easing of monetary policy rates, stabilisation of debt through fiscal policies, and the implementation of growth-enhancing reforms.

     

     

    He also stressed the importance of fostering trust between governments, citizens, and corporations, as well as enhancing international cooperation to maintain momentum in reducing inflation and sustaining economic growth.