Africa > Economy

Economy in Africa

  • Rise of middle class, fact or fiction

    BOTSWANA, 2017/04/26 White-walled tyres on his bike appear to elevate a trendy young man from the lower classes but the question is whether he is contributing towards sustainable economic increase. THE middle classes in the world south have gained growing attention since the turn of the century, mainly through their rapid ascendancy in the Asian emerging economies. A side result of the economic increase during these “fat years” was a relative increase of monetary gain for a growing number of households. This as well benefited some lower gain groups in resource-rich African economies. A lot of part these crossed the defined poverty levels, which were raised in late 2015 from $1.25 (R16) a person a day to $1.90. As some economists had suggested, from as little as $2 they were considered as entering the “middle class”.
  • Reforms boost nation’s standing as a top regional destination for doing business

    RWANDA, 2017/04/19 Since 2006, Rwanda has jumped from 139th to 56th in the World Bank’s Doing Business Index, and has been the second top reformer over the last 12 years in introducing measures to improve the relieve of doing business Rwanda’s economy has taken off over the completed decade, and following fundamental changes to the country’s regulatory framework, numerous opportunities across communications, power, and transport infrastructure have emerged. Red tape has been cut, corruption has been curbed, and tax incentives have been introduced, creating new possibilities for foreign direct investment in a variety of industries.
  • World Bank president Jim Yong Kim at a news conference in Berlin.

    WORLD, 2017/04/15 Failure to meet the internet-inspired aspirations of people in poor nations runs the risk of creating the conditions for war, terrorism and increased migration, the president of the World Bank has warned. Speaking in London ahead of the Bank’s spring conference next week, Jim Yong Kim said an urgent development push was needed in order to meet the demands for a better life by those in developing nations, increasingly aware through their smartphones of how rich people lived. The Bank is particularly worried about recent low increase in Africa and Kim said official aid money should be used to turn the billions of dollars provided by western nations into trillions of dollars of investment from the private sector.
  • Sierra Leone Achievements A new beginning. A resilient nation

    SIERRA LEONE, 2017/03/22 This year Sierra Leone celebrates the 15th anniversary of the end of the civil war as a unified country and beacon of democracy and social evolution in Africa. Next a major setback with the Ebola crisis in 2014 and 2015, which led to economic contraction of over 20 %, the country was officially declared Ebola-free in March, and has resumed on a path to building sustainable and inclusive economic growth If the essence of this West African country were to be distilled into a single word, that word would be resilience. Next the devastating civil war, which tore through the country between 1991 and 2002, Sierra Leoneans quickly set about rebuilding their communities, repairing infrastructure, constructing new schools and clinics, and even restarting mining operations.
  • African bankers scrutinize German minister’s ‘Marshall Plan with Africa’

    GERMANY, 2017/03/08 German Development Minister Gerd Müller has been canvassing support for his ‘Marshall Plan with Africa’ at the African Development Bank in Ivorian capital city of Abidjan. Some bankers thought his discussion paper lacked detail, reports Adrian Kriesch. In the modern premises of the African Development Bank (AfDB) in the Ivorian commercial hub of Abidjan, around twenty board members are gathered around an enormous table. Almost all of them are bankers with years of experience in development finance. They meet each week to discuss applications for loans, around 300 each year. Last year they disbursed almost US$11 billion (10.5 billion euros) in loans.
  • TIME FOR AFRICAN ECONOMIC MIRACLE

    AFRICA, 2017/03/07 In the 20th century, Africa gained political independence but fell behind economic boom. In the 21st century, it is Africa’s turn – but not without stronger national and new external push. Next struggle against corruption, lawlessness and terror, President Buhari’s government has outlined an economic recovery plan targeting 7 % GDP increase rate from 2017 to 2020. While a lot of African economies are hoping for takeoff in the coming years, Nigeria represents the region’s greatest economic potential.
  • Gabon looks to tax reforms and non-oil growth to boost revenues

    GABON, 2017/03/06 Approved by Parliament on January 10, Gabon’s budget for 2017 seeks to pare back spending, maintain stable monetary conditions and engender economic diversification. The budget caps total spending for this year at CFA2.47trn (€3.8bn), a 5.7% decrease on last year. This readjustment comes despite the Gabon government expecting revenue to hit CFA1.85trn (€2.8bn) in 2017 – a 10% increase on the IMF’s 2016 estimate of CFA1.68trn (€2.6bn). Gain from oil is expected to total CFA478.6bn (€727.5m) this year. Meanwhile, capital spending will be significantly reduced year-on-year, from CFA562bn (€854.2m) in 2016 to CFA372bn (€565.4m) this year, while current spending will as well be scaled back by CFA185.6bn (€282.9m) to CFA1.4trn (€2.1bn).
  • International Economic Week In Review: Good News Abounds

    WORLD, 2017/03/06 This week's news continued in a positive trend. All signs from the EU point to an uptick in in general activity. Canada continues to grow modestly but is still dealing with negative business investment . Japanese inflation was positive this month - a very welcome development for a country trying to undo decades of deflation. And finally, the UK continues to confound those (myself included) who predicted a post-Brexit recession. EU news continued its positive trend. Most significant were the Markit numbers: the composite reading was 56, a 70-month high. The service sector was as well near a 5-year high with a 55.5 reading. New orders and business activity increased, as did employment. Rising prices were the only negative. The manufacturing number rose .2 to 55.4; both production and new orders were higher. But like the service statement, prices were a problem, with some commodities described as "seller's markets". Unemployment was steady at 9.6%; loan increase and money both increased. Thanks to a 9.2% increase in energy prices, CPI rose 2% Y/Y. And while retail sales declined .1% M/M, they increased 1.2% Y/Y, which continues this data series' near 4-year continuous increase:
  • Hit by soft oil prices, rudderless Nigeria struggles with a leadership crisis and recession

    AFRICA, 2017/03/06 "Who's running Nigeria?" blared a headline in this week's The Economist, aptly summarizing the national of affairs in beleaguered Nigeria — a major oil producer and African economic powerhouse whose economy appears to be as stricken as its ailing leader. With Nigerian President Muhammadu Buhari in absentia suffering from an undisclosed illness, the country's National Bureau of Statistics reported this week that the economy contracted 1.5 % last year for the initial time in nearly 25 years. Although Vice President Yemi Osinbajo is handling day-to-day management of the country, analysts say Nigeria's mounting woes require steady leadership.
  • Insurance in Cote D’Ivoire Nurturing a culture of insurance in Cote D’Ivoire

    ABIDJAN, 2017/03/04 Bernard Asso Abouo, Managing Director of La Loyale Group in Côte d’Ivoire, discusses the evolution of the insurance industry in the country Over the past few years, there has been strong growth in the insurance sector in Cote D’Ivoire, which is a very competitive market. How do you explain this outstanding development in insurances in Côte d’Ivoire? Insurance is a bit of culture, which is the nature of Africa. Here, insurance is akin to solidarity, because the African person and solidarity go hand in hand; that is to say that an African cannot remain indifferent to a problem, he will try to provide assistance as well as he can. Unlike this help that comes after the harm is done, we act through preventive measures: the money you have set aside little by little will help you in case of need. Therein lies all the difference with the African understanding of solidarity. Since the moment we understood this, we have tried to follow the example, because we have been to Europe and all around the world, and this is how it works.