Tuesday, March 19


How African football is turning into an economic engine

Industry and Trade
By
African football AFCON

  • Sports industry in Africa is expected to grow by 8 percent in 3 to 5 years according to advisory giant PwC
  • Currently, milions of Africans, including businesses based in the continent that have pumped millions into the tournament, are following the TotalEnergies CAF AFCON 2023 finals in Ivory Coast.
  • In 2021, Cameroon invested over $800 million in preparations for that year’s AFCON finals.

The 2021 African football continental showpiece—Cup of Nations (AFCON)—saw Cameroon attract millions of spectators both physically and virtually, a scenario that is music to the ears of sponsors. This further fortifies the fact that sports in Africa have the potential to generate billions of dollars.


Fast forward to 2030, Morocco is poised to become the second African country to ever stage a World Cup after South Africa in 2010, marking a historic step in African football and the business value chain that …


Read More

new world order friend-shoring

Global pivot: How Africa can shape the new world order narrative

  • Every so often, Africa is being forced to choose sides between China, Russia, and the West. 
  • However, to win big, Africa must speak in one voice and trade as a unit in the new world order
  • What’s more, Africa’s vas resource endowments can strengthen the continent’s resilience of its Transatlantic Alliance.

From friend-shoring brought about by COVID-19, then the Russia-Ukraine war, and now escalations in conflict in the Gaza strip, a new world order is taking shape, and Africa must align itself.


The big question for Africa is who to ally with and who to forego. Alignments with China are almost unavoidable, yet they place African economies at loggerheads with the West. While support for Israel pays off, it turns African countries into easy targets for the increasingly complex terror networks taking root on the continent.

Then there is the need to diversify sources of …

Kenya's debt distress

Kenya’s Debt Distress Threat to its Long-Term Development Agenda -Experts

  • Kenya’s debt distress has escalated, with loan repayments falling due amid a depreciating shilling against the dollar.
  • Other impediments include Kenya’s vulnerability to climate shocks such as drought and floods, which may derail growth over the long term.
  • On the expenditure side, fiscal consolidation in the past two years has led to a real per capita spending decline.

Experts have warned that Kenya risks missing its economic growth targets in the medium term as it grapples with high debt distress and a deteriorating macroeconomic operating environment.


The country finds itself in a tight spot following years of successive borrowing, coupled with the inability of the private sector to create sufficient jobs for millions of young people entering the job market annually.

The latest finding by an economic think tank, the Institute of Public Finance (IPF), shows that since 2014, persistent high fiscal deficits have resulted …

Kenya's distressed debt levels

Kenya’s distressed debt levels a threat to development – experts

  • Kenya’s distressed debt levels are pushing the country in a tight spot following years of successive borrowing, the Institute of Public Finance (IPF) says in its latest Macro Fiscal Analytical Snapshot Report.
  • This is compounded by the inability of the private sector to create woefully insufficient jobs for millions of young people entering the job market annually.
  • The report notes that since 2014, persistent high fiscal deficits have resulted in a swift escalation of public debt, now standing at 70 per cent of the GDP.

Kenya risks missing its economic growth targets in the medium-term as the country grapples with high debt distress and a deteriorating macroeconomic operating environment.


According to the Institute of Public Finance (IPF) in its latest Macro Fiscal Analytical Snapshot Report, the country finds itself in a tight spot following years of successive borrowing.

This is coupled with the inability of …

East Africa trade

Kenya, Tanzania and Congo corridors to drive East Africa trade growth by 2035

  • Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.
  • Within the Southern Africa region, higher integration will drive its share of total intra-Africa exports to a third by 2035.
  • The MENA Region and the Middle East-East Africa corridors will also be substantial, with combined trade volume expected to reach almost USD200 billion by 2035.

Increased infrastructure interconnectivity by the African states has been identified as the key driver that will lead to success of the African Continental Free Trade Area (AfCFTA). Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.


This comes after members after some member states expressed concern that the African trade system has failed to grow beyond the estimated 14–15 per cent over the last three to four years.

However, prospects are now positive that intra-Africa …

currency weakness

Africa braces for prolonged currency weakness till Q3 — IMF

Money Deals

  • The IMF anticipates a peak in interest rates at the beginning of 2024, following a slower climb in 2023 across major economies.
  • This will likely exert pressure on already struggling currencies across Africa.
  • Notably, the US Federal Reserve is expected to witness interest rates reaching around 5.4%, with plans for rate cuts in Third Quarter.

Pressure on the weakening local currencies in African economies may persist for much of this year, with further depreciation against major currencies anticipated until the third quarter.


According to the International Monetary Fund (IMF), their latest interest rates forecast update for major economies covering the period from 2024 to 2028 projects a peak in interest rates at the beginning of 2024. This comes after rates continued to climb at a slower pace late last year.

US Federal Reserve interest rate

For instance, the US Federal Reserve is expected to witness …

Featured

African football AFCON

How African football is turning into an economic engine

Industry and Trade

  • Sports industry in Africa is expected to grow by 8 percent in 3 to 5 years according to advisory giant PwC
  • Currently, milions of Africans, including businesses based in the continent that have pumped millions into the tournament, are following the TotalEnergies CAF AFCON 2023 finals in Ivory Coast.
  • In 2021, Cameroon invested over $800 million in preparations for that year’s AFCON finals.

The 2021 African football continental showpiece—Cup of Nations (AFCON)—saw Cameroon attract millions of spectators both physically and virtually, a scenario that is music to the ears of sponsors. This further fortifies the fact that sports in Africa have the potential to generate billions of dollars.


Fast forward to 2030, Morocco is poised to become the second African country to ever stage a World Cup after South Africa in 2010, marking a historic step in African football and the business value chain that …


Untitled

Industry & Trade

food security climate change agriculture

Enhancing food security in developing countries

Opinion

  • Food security is increasingly under threat as extreme weather events, shifting agro-ecological zones and changes in rainfall patterns accelerate the risk of food insecurity.
  • In response to the challenges posed by climate change, various adaptation measures have been identified and implemented.
  • These aim to improve livelihoods and enhance food security while mitigating the impact of climate change.

Climate change is an undeniable reality, and its consequences have far-reaching effects on various sectors, particularly agriculture and food security. RSK Tanzania Senior Social Consultant Geofrey Mutayoba says developing countries are particularly vulnerable to the impacts of climate change, as their economies heavily rely on agriculture. However, innovative adaptation measures are being introduced that are yielding benefits that go beyond climate resilience.


Food security is increasingly under threat as extreme weather events, shifting agro-ecological zones and changes in rainfall patterns accelerate the risk of food insecurity. Developing countries …

Countries

Kenya's debt distress

Kenya’s Debt Distress Threat to its Long-Term Development Agenda -Experts

Countries

  • Kenya’s debt distress has escalated, with loan repayments falling due amid a depreciating shilling against the dollar.
  • Other impediments include Kenya’s vulnerability to climate shocks such as drought and floods, which may derail growth over the long term.
  • On the expenditure side, fiscal consolidation in the past two years has led to a real per capita spending decline.

Experts have warned that Kenya risks missing its economic growth targets in the medium term as it grapples with high debt distress and a deteriorating macroeconomic operating environment.


The country finds itself in a tight spot following years of successive borrowing, coupled with the inability of the private sector to create sufficient jobs for millions of young people entering the job market annually.

The latest finding by an economic think tank, the Institute of Public Finance (IPF), shows that since 2014, persistent high fiscal deficits have resulted …


Read More

Kenya’s distressed debt levels a threat to development – experts

  • Kenya’s distressed debt levels are pushing the country in a tight spot following years of successive borrowing, the Institute of Public Finance (IPF) says in its latest Macro Fiscal Analytical Snapshot Report.
  • This is compounded by the inability of the private sector to create woefully insufficient jobs for millions of young people entering the job market annually.
  • The report notes that since 2014, persistent high fiscal deficits have resulted in a swift escalation of public debt, now standing at 70 per cent of the GDP.

Kenya risks missing its economic growth targets in the medium-term as the country grapples with high debt distress and a deteriorating macroeconomic operating environment.


According to the Institute of Public Finance (IPF) in its latest Macro Fiscal Analytical Snapshot Report, the country finds itself in a tight spot following years of successive borrowing.

This is coupled with the inability of …

Food inflation showing a slight decrease despite fluctuations

  • General cost of living in Africa has increased driven by food inflation.
  • Researchers project a possible decline in food prices in 2024.
  • Food security in Africa is threatened by possible escalation of conflict in Gaza.

The cost of living in Tanzania is steadily increasing, driven by the rise in the prices of basic foods. As of August 2022, Tanzania’s food inflation was reported at 7.8 per cent by the World Bank. The inflation rate worsened, reaching a peak of 9.7 per cent as of December 2022.


“This upward trajectory of food prices persisted into January 2023, where the food inflation rate reached 9.9 per cent,” reports Tanzania Investment and Consultant Group Ltd (TICGL), an economic research institute.

Food inflation is not only affecting East Africa but also most of the rest of the world. The World Bank states, “Inflation higher than 5per cent is experienced …

The nexus between the Israel-Hamas war and food security in Africa

  • The ongoing conflict in the Gaza Strip, Palestine, is threatening to impose a new burden on food security systems in Africa.
  • African economies find themselves compelled to choose sides between Israel and Palestine carefully.
  • However, our analysis indicates that Africa faces a no-win situation when dealing with instability and the worsening conflict in the Gaza Strip.

The aftermath of the Israel-Hamas war is having devastating effects on Africa’s economic and political spheres, with food inflation being the first tangible negative impact.


As African economies are still recovering from the effects of the global COVID-19 lockdown and grappling with the consequences of the Russia-Ukraine war, the Israel-Hamas war is further destabilizing fragile food security systems in the continent.

The disruption in trade is attributed to new security challenges and what economists describe as investors opting for a “flight to safety.” These investor actions are strengthening …


Regional Markets

East Africa's insurance sector

East Africa keen to grow region’s insurance sector

Industry and Trade

  • East Africa’s insurance sector regulators held the 7th Special Meeting of the Executive Committee (ExCo)of the East African Insurers Supervisors Association (EAISA) in Kenya on Friday.
  • The East African insurance supervisors have resolved to promote the development of cross-border insurance products and services jointly.
  • The members have also agreed to coordinate joint innovation initiatives relating to insurance development in member states.

Joint resolve for East Africa’s insurance sector supervisors 

The East African insurance supervisors have resolved to jointly promote the development of cross-border insurance products and services to address the challenges of low insurance uptake and penetration in the region.


The members have also agreed to coordinate joint innovation initiatives relating to insurance development in member states.

Working under the auspices of the East African Insurance Supervisors Association (EAISA), the supervisors, at their 7th Special Meeting of the Executive Committee (ExCo) meeting held in Eldoret, …


Read More

Tech & Innovation

college assignments

Leveraging Tech Tools for Streamlining College Assignments

Tech & Business

  • The digital revolution has transformed how we approach education. Today, we have the world at our fingertips – literally.
  • From researching to drafting and editing, every step of creating a college assignment can be enhanced with technology.
  • Utilizing these resources saves time and ensures that your references are credible and up-to-date.

Navigating through the labyrinth of college assignments can be quite a challenge. It’s like being an explorer in the vast world of academia, where each assignment is a new territory to conquer.


But what if you had a map and compass in the form of technology? In today’s digital age, tech tools are not just accessories but essential allies in the quest for academic success.

The Digital Revolution in Education

Remember the days of poring over stacks of books in the library? While traditional methods are charming, the digital revolution has transformed how we …


Read More

Editor’s Picks

African football AFCON

How African football is turning into an economic engine

Industry and Trade

  • Sports industry in Africa is expected to grow by 8 percent in 3 to 5 years according to advisory giant PwC
  • Currently, milions of Africans, including businesses based in the continent that have pumped millions into the tournament, are following the TotalEnergies CAF AFCON 2023 finals in Ivory Coast.
  • In 2021, Cameroon invested over $800 million in preparations for that year’s AFCON finals.

The 2021 African football continental showpiece—Cup of Nations (AFCON)—saw Cameroon attract millions of spectators both physically and virtually, a scenario that is music to the ears of sponsors. This further fortifies the fact that sports in Africa have the potential to generate billions of dollars.


Fast forward to 2030, Morocco is poised to become the second African country to ever stage a World Cup after South Africa in 2010, marking a historic step in African football and the business value chain that …

Africa

World Bank

World Bank downgrades global growth in 2024 to 2.4 per cent

Africa

  • The World Bank attributes the downgrade to the recent conflict in the Middle East, which has heightened geopolitical risks and raised uncertainty in commodity markets.
  • Growth for Sub-Saharan Africa is projected to accelerate to 3.8 per cent in 2024 and firm further to 4.1 per cent next year.
  • The lender has upgraded Kenya’s GDP growth to 5.2 per cent due to easing inflation.

Global growth is projected to slow for the third consecutive year, decreasing from 2.6 per cent last year to 2.4 per cent this year, according to the World Bank.


In its January 2024 Global Economic Prospects report, the lender states that following a sharp slowdown in 2022 and a further decline last year, global output growth is set to decrease slightly this year.

This is occurring as global economic activity continues to soften due to the impacts of tight monetary policies, restrictive …

Industry & trade

African football AFCON

How African football is turning into an economic engine

Industry and Trade

  • Sports industry in Africa is expected to grow by 8 percent in 3 to 5 years according to advisory giant PwC
  • Currently, milions of Africans, including businesses based in the continent that have pumped millions into the tournament, are following the TotalEnergies CAF AFCON 2023 finals in Ivory Coast.
  • In 2021, Cameroon invested over $800 million in preparations for that year’s AFCON finals.

The 2021 African football continental showpiece—Cup of Nations (AFCON)—saw Cameroon attract millions of spectators both physically and virtually, a scenario that is music to the ears of sponsors. This further fortifies the fact that sports in Africa have the potential to generate billions of dollars.


Fast forward to 2030, Morocco is poised to become the second African country to ever stage a World Cup after South Africa in 2010, marking a historic step in African football and the business value chain that …

Money Deals

currency weakness

Africa braces for prolonged currency weakness till Q3 — IMF

Money Deals

  • The IMF anticipates a peak in interest rates at the beginning of 2024, following a slower climb in 2023 across major economies.
  • This will likely exert pressure on already struggling currencies across Africa.
  • Notably, the US Federal Reserve is expected to witness interest rates reaching around 5.4%, with plans for rate cuts in Third Quarter.

Pressure on the weakening local currencies in African economies may persist for much of this year, with further depreciation against major currencies anticipated until the third quarter.


According to the International Monetary Fund (IMF), their latest interest rates forecast update for major economies covering the period from 2024 to 2028 projects a peak in interest rates at the beginning of 2024. This comes after rates continued to climb at a slower pace late last year.

US Federal Reserve interest rate

For instance, the US Federal Reserve is expected to witness …

Investing

East Africa trade

Kenya, Tanzania and Congo corridors to drive East Africa trade growth by 2035

Investing

  • Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.
  • Within the Southern Africa region, higher integration will drive its share of total intra-Africa exports to a third by 2035.
  • The MENA Region and the Middle East-East Africa corridors will also be substantial, with combined trade volume expected to reach almost USD200 billion by 2035.

Increased infrastructure interconnectivity by the African states has been identified as the key driver that will lead to success of the African Continental Free Trade Area (AfCFTA). Kenya-DRC and Tanzania-DRC Corridors have been identified as the key links that will drive East Africa trade.


This comes after members after some member states expressed concern that the African trade system has failed to grow beyond the estimated 14–15 per cent over the last three to four years.

However, prospects are now positive that intra-Africa …

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