Severe drought in Horn of Africa

28 June 2011 Last updated at 14:31 GMT The drought has forced thousands to cross borders, like these Somalis in Dadaab, Kenya Some parts of the Horn of Africa have been hit by the worst drought in 60 years, the UN says.

More than 10 million people are thought to be affected across the region.

The UN now classifies large areas of Somalia, Ethiopia, Djibouti and Kenya as a crisis or an emergency.

Charity Save the Children says drought and war in Somalia has led to unprecedented numbers fleeing across the border into Kenya, with about 1,300 people arriving every day.

Three camps at Dadaab, just inside Kenya, are home to well over 350,000 people, but they were built to hold just 90,000 and are severely overcrowded.

A prolonged failure of rains, which began in late 2010, is now taking its toll.

The UN's Office for the Co-Ordination of Humanitarian Affairs (Ocha) warns that the situation is continuing to deteriorate, and the number of people in need will continue to increase.

The numbers now affected are huge, Ohca says: 3.2m in Ethiopia, 3.2m in Kenya, 2.6m in Somalia and more than 100,000 in Djibouti.

Every month during 2011, about 15,000 Somalis have fled their country, arriving in Kenya and Ethiopia, according to Ocha.

While conflict has been a fact of life for them for years, it is the drought that has brought them to breaking point. Many have walked for days, are exhausted, in poor health, desperate for food and water.

Nearly one third of all children in the Juba region of Somalia are acutely malnourished, while in parts of Ethiopia the figure is even higher, the UN research says. Parts of Uganda are also suffering from the drought.

Hassain, Ali and Sareye are among the 390,000 Somalis to seek refuge in Kenya

The UN refugee agency is dealing with the exodus.

A new refugee camp primarily for Somalis was opened at Kobe in Ethiopia last Friday, near an existing camp at Melkadida.

More than 3,500 refugees and their belongings were moved there over the weekend.

The UNHCR says this is the sixth camp for Somalis in Ethiopia, which is currently housing some 130,000 displaced people.

Food prices have risen substantially across the region, pushing many moderately poor households over the edge.

The price of grain in affected areas in Kenya is 30-80% above average.

The spokeswoman for Ocha, Elizabeth Byrs, said appeals for Somalia and Kenya, each about $525m (?328m), are barely 50% funded, while a $30m appeal for Djibouti has raised just 30% of the needed funds.

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Indian pledges billions to Africa

24 May 2011 Last updated at 14:05 GMT Mr Singh is also likely to take up the issue of Somali pirates India will offer $5bn (?3.1bn) credit to African nations to help them meet development goals, Prime Minister Manmohan Singh has said.

Speaking at a meeting with African heads of state in Ethiopia, Mr Singh also pledged to support African education and infrastructure.

He is in Africa in a bid to expand India's trade with the continent.

Analysts say India is lagging behind its rival China in trying to invest in and access African markets.

Mr Singh is at the beginning of a six-day visit to the continent.

India's commerce with Africa is worth $40bn (?25bn) a year, but it is dwarfed by China, which does roughly three times as much business with the continent.

Manmohan Singh spoke of a unique relationship between India and Africa, which he said owed its origins to a common struggle against colonialism, apartheid and poverty.

He said Africa had the potential for major growth.

"Africa possesses all the prerequisites to become a major growth pole of the world. There is good news in the struggle against HIV and Aids, as well as in improving literacy, reducing infant mortality and building institutions of representative government," he said.

The BBC's Will Ross, in Nairobi, says that despite the global downturn, India and Africa have been fairly resilient - economies are steadily growing although many of the poor would say they are not feeling the benefit in their own pockets.

While India's economy expanded by more than 8%, India's business links in Africa are also growing - one example being Bharti Airtel spending $10bn (?6.2bn) in 2010 to take over mobile phone operations across Africa from the Kuwaiti firm, Zain.

The challenge for African leaders, our correspondent says, is how to boost the trade and move away from an over-reliance on single commodities - the continent's raw materials.

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World Bank: $6bn for North Africa

24 May 2011 Last updated at 16:19 GMT The World Bank move is explicitly aimed at bolstering the Arab Spring democratic revolutions The World Bank has pledged $6bn in loans for Egypt and Tunisia in a move explicitly to bolster the Arab Spring.

Egypt, which will receive $4.5bn over two years, is also speaking to the International Monetary Fund (IMF).

Meanwhile, Qatar has offered to make up to $10bn in investments in Egypt.

It comes after the European Bank for Reconstruction and Development - set up to aid post-Communist Eastern Europe - said at the weekend it would start lending to emerging Arab democracies.

Egypt and Morocco had already applied to the EBRD for financial assistance.

But while the lender said it hoped eventually to provide up to 2.5bn euros ($3.5bn) a year to the region, any such wholesale geographic reorientation of its mandate would need the approval of all of its 63 members.

Funding gap

Like the EBRD, the World Bank explicitly stated its desire to support the Arab Spring of democratic revolutions.

"Our support, and that of others, can sustain momentum and accelerate progress, but only if coupled with real reform," said Robert Zoellick, World Bank president.

The World Bank money will be made conditional on the countries' progress in modernising their economies.

Tunisia - which was the first country to oust its former dictator - will receive $1.5bn from the international lender, of which $500m is part of a previously-announced $1.2bn package put together with the African Development Bank and European donors.

Continue reading the main story $10bn expected funding shortfall in 2011-12$4.5bn new loans from the World Bank over two years$1.2bn in existing World Bank support$1bn debt forgiveness by US, plus $1bn loan guarantees$4bn aid package from Saudi Arabia$10bn investments from QatarMulti-billion dollar loans from the IMF to be agreedTwo tranches of $1bn, to be provided directly to the Egyptian government this year and next, would be linked to "governance and openness reforms".

The other money would be provided in other formats, such as guarantees, private business loans and infrastructure financing.

Egypt's financing needs are daunting, thanks to a collapse in the economy - notably the tourism industry - triggered by the recent political turmoil.

Elevated demands of the people after the revolution were adding to pressure on the budget, Finance Minister Samir Radwan told the BBC earlier this month.

The country expects to run a deficit of 9-10% of economic output in the coming year and faces a financing gap of $10bn-12bn, which it has already formally applied to the IMF to help plug.

Gulf support

Qatar's planned investments in Egypt are expected to be consummated during a visit to Egypt by Qatar's emir this Saturday.

"I believe these projects, when implemented, will surpass $10bn and they will be productive products in Egypt," said the Qatari ambassador, Saleh al-Buainein.

The emirate may also buy up Egyptian government bonds in order to help fund its deficit.

It comes after the US and Saudi Arabia offered the new Egyptian government financial support.

The US said it would cancel $1bn in debts and provide a further $1bn in loan guarantees to support infrastructure finance.

Meanwhile, Saudi Arabia has offered a $4bn aid package.

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