Author: James Ndwaru

• South Africa inflation has fallen to a more than four-year low.
• South Africa’s economy has experienced a thrill of positivity since the Government of National Unity (GNU.
• S&P Global Ratings endorsed the positivity by raising the view of the nation to positive from stable.

South Africa’s inflation has fallen to a more than four-year low, signaling another reduction in borrowing rates by the monetary policy committee on Thursday.

Consumer prices surged 2.8 per cent in October from a year earlier, compared with 3.8 per cent in the preceding month, according to Pretoria-based Statistics South Africa through a statement on their website.

The decline below the lower end of the central bank’s 3 per cent to 6 per cent target range will likely influence the monetary policy committee to ease the monetary policy benchmark for the second time in as many months. The widespread expectation is for the MPC to …

• Central banks across Africa weighing interest rates in the next three weeks are poised to lower them, cautious that the opportunity to ease further may dissipate after President Trump formally assumes office.
• The Trump presidency is anticipated to strengthen the dollar further, primarily due to his commitment to significantly raising tariffs on imported goods.
• A new wave of inflation, driven by the strengthening dollar from the Trump effect, would exacerbate the already high inflation rates in many African countries.

Donald Trump’s return to the Whitehouse sent the dollar surging against both G10 and emerging market currencies in a change that has potentially far-reaching macroeconomic repercussions for African nations.

As Trump’s victory became evident, the “Trump Trade” pushed 10-year Treasury yields up by 0.16 per cent to 4.44 per cent. Meanwhile, the dollar index, which measures the dollar’s performance against a basket of major currencies, saw its largest single-day increase since …

• Gabon’s referendum has extended the presidential term to seven years with a two-term limit from the previous five years.
• The referendum represents a crucial first step as the nation seeks a return to civilian rule since Ali Bongo’s ouster in August 2023.
• Gabon’s Interior Minister Hermann Immongault has said that 92 per cent of voters backed the proposed constitution.

Gabon’s Referendum Extends Presidential Term Limit

Voters in Gabon have agreed to extend the country’s presidential term limit to seven years from five years in a referendum on a new constitution. The referendum represents a crucial first step as the nation seeks a return to civilian rule since Ali Bongo’s ouster in August 2023. Bongo had governed Gabon since 2009, taking over the presidency from his father, Omar Bongo, who died after ruling the country for over 55 years.

The referendum also clears the path for military leader Brice …

• Mozambique political unrest has caused losses of nearly $390 million, or 2.2 per cent of the gross domestic product.
• According to S&P Global Ratings, this situation has escalated the already high risks that the government will meet its domestic debt obligations.
• The ongoing post-election unrest continues unabated, and any currency devaluation is likely to exacerbate inflation and risk further destabilization.

Mozambique Political Unrest

Since last month’s disputed elections, deadly protests have rocked Mozambique’s economy. According to S&P Global Ratings, this situation has escalated the already high risks that the government will meet its domestic debt obligations.

The company lowered its assessment of the gas-rich nation’s local currency debt to CCC on 18 October before widespread political unrest shut down large parts of the economy. This situation will squeeze the government’s already tight finances, S&P analyst Leon Bezuidenhout said.

“Unless there’s some type of sharp fiscal adjustment or windfall revenue, they …

• Meg Whitman, the US envoy to Kenya, has resigned with one year left in her term.
• Whitman became the second female American ambassador to Kenya.
• Despite her accomplishments in economic diplomacy, Ambassador Whitman faced sustained criticism of her stance on sensitive issues such as corruption, police brutality, and extrajudicial killings.

Meg Whitman, the US envoy to Kenya, has tendered her resignation with one year left in her term amid criticisms over her handling of human rights issues in the country. This resignation comes a week after Donald Trump returned to the White House and also comes on the back of sustained calls from angry Kenyans for her ouster. In a statement to newsrooms, Whitman indicated that she had already submitted her resignation to President Joe Biden.

“Today, I announced to my team at the US embassy that I submitted my resignation to President Biden,” the statement read in part. “It …

• Waste Management in Uganda is beset with the same challenges that most developing countries face.
• Tree Adoption Uganda (TAU) is a youth-based non-governmental organization that operates as a non-profit.
• WasteAid expanded its reach into Uganda earlier this year, launching programs to support a more robust circular economy and address the country’s growing waste problem.

Waste Management Challenges in Uganda

Waste Management in Uganda is beset with the same challenges that most developing countries face. Rapid urbanisation, a growing population, and limited resources have overexerted legacy waste disposal systems.

Urban waste collection in Uganda is 600,000 tons, of which 40 percent is collected while the remaining 60 percent is dumped in open areas, water bodies, or informal dumps. The uncollected waste leads to environmental degradation and poses serious health risks.

In addition, poor infrastructure, a lack of investment, and low community interest in proper waste disposal create a perfect …

• South Africa’s budget update has revealed that public finances face a mounting strain. 
• The tax revenue for the current fiscal year is projected to be $1.27 billion.
• President Cyril Ramaphosa has vowed to transform the country into a giant construction site.

South Africa’s Budget Reveals Strain to Public Finances

South Africa’s latest budget update has revealed that public finances are facing mounting strain, emphasizing the urgency for the newly formed coalition government to attract additional investment into the region’s largest economy.

The medium-term budget policy statement presented by Finance Minister Enoch Godongwana on Wednesday indicates that the fiscal deficit is anticipated to expand to 5 per cent of the gross domestic product in the fiscal year ending in March. This figure is an increase from the 4.5 per cent predicted in February and exceeds the predictions of most economists.

The rand weakened with rising bond yields. The nation’s currency fell …

• Authorities need to rework Senegal’s program with the IMF after an audit revealed a higher budget and debt deficit than previously reported.
• During former President Macky Sall’s rule, a review of Senegal’s finances showed that the country’s public and budget deficit was more than 10 percent of the gross domestic product, almost double the 5.5 percent reported under Sall.
• Shortly after taking office, President Faye initiated a review of Senegal’s natural resources sector.

Reworking Senegal’s program with the IMF

Senegal needs to rework its program with the International Monetary Fund after an audit revealed a higher budget and debt deficit than previously reported.

Senegalese authorities hope to meet all the prerequisite conditions to reach a new agreement with the IMF by Q1 2025. This is according to Senegal’s Finance Minister Cheikh Diba, who attended the IMF’s annual meeting in Washington.

“The current program must be updated,” Diba said. “We’re in …

• Global economic growth will emanate from powerhouse BRICS economies over the next five years as per the IMF predictions.
• The ten BRICS nations comprise more than a quarter of the world economy and almost half the global population.
• China will contribute most significantly to global growth over the next half-decade, with its 22 per cent share outpacing all G7 countries combined.

The countries comprising BRICS— Brazil, Russia, India, China, and South Africa, with five new members—are an informal grouping of emerging economies hoping to increase their sway in the world order.

The BRICS group has become a major political force in the last two decades, building on its desire to counter Western influence in global institutions.

BRICS’ 2024 expansion has come with a range of geopolitical implications. It forms a rising economic and demographic heft: the ten BRICS nations comprise more than a quarter of the world economy and almost …

• Experts have warned of a refugee crisis in Chad as escalating violence and a food crisis in Sudan compel large numbers to flee across the border.
• Since April 2023, conflict has persisted between the Sudanese army, led by the nation’s de facto leader Abdel Fattah al-Burhan, and the paramilitary Rapid Support Forces (RSF).
• Despite the challenges faced by refugees in Chad, the escalating violence in Sudan is compelling an increasing number of individuals to seek refuge there.

Refugee crisis in Chad

Refugees and aid organizations have warned of worsening conditions in the overcrowded and underfunded camps of Chad as escalating violence and a food crisis in Sudan compel large numbers to flee across the border.

In the first week of October alone, approximately 25,000 individuals, primarily women and children, sought refuge in eastern Chad, marking an unprecedented influx for a week in 2024. Chad, ranked among the poorest nations …