Author: James Ndwaru

According to SWIFT, African regions with strong integration saw increased use of local currencies and decreased use of hard currencies such as the US dollar. For instance, the use of the West African franc by the eight countries in the West African Economic and Monetary Union has overtaken the South African rand and the British West African pound.

This implies that boosting the use of regional currencies will shield the African trade market from adverse global conditions associated with the performance of US dollars. However, further regional coordination remains necessary to build a continental payment system that encourages the use of local correspondent banks and local currencies. These moves can help in managing currency depreciation to boost African trade finance. …

In recent months, the discourse about de-dollarisation has gained momentum. The sanctions against Russia have exposed the danger of over-dependence on the US dollar in international trade. The recent foreign exchange challenges have also recharged the growing efforts to bolster other currencies.

De-dollarisation could soon become a reality. A BRICS substitute to the dollar could enjoy high prospects for success, a former White House adviser, Joseph Sullivan, has noted. Sullivan served as a staff economist at the White House Council of Economic Advisers during the Trump administration. According to him, a potential BRICS currency poses a unique threat to the dominance of the US dollar in international trade.…

In the past decade, nations around the world have sought to transition to an investment-focused strategy in Africa, recognizing the continent’s substantial $100 billion annual infrastructure financing gap. In this era of a global transition towards investment-focused strategies in Africa, Japan emerges as a proactive player, steering the trajectory toward sustainable growth with its substantial financial commitments and innovative initiatives.

Japan’s Active Position for Investing in Africa

While China’s Belt and Road Initiative dominated the global scene, Chinese lending to Africa has been on the decline since 2016. This has prompted a series of “Africa+1” summits in 2022, with countries like the United States, the United Kingdom, India, and Russia placing significant emphasis on investment and trade deals.

Among these nations, Japan has taken a proactive stance, particularly highlighted at the Eighth Tokyo International Conference on African Development (TICAD) summit held in Tunisia last summer. Japan pledged an impressive $30 …

Therefore, investing in pro-poor development projects is one of the best ways to address poverty and the cost of living in Kenya. Economic empowerment of the various groups can improve families’ lives and address the country’s ever-rising poverty levels. Kenya desperately needs a solution to poverty and the cost of living. Therefore, actualizing socio-economic development could prove a viable approach.…

The global financial landscape has undergone a remarkable transformation in recent times. Remarkably, the issue of the de-dollarization of international trade is slowly but steadily gathering momentum. A rising trend toward de-dollarization is challenging the longstanding supremacy of the United States in the international financial system. As the dominant global reserve currency, the US dollar remains pivotal in international trade, investment, and financial transactions.…

An efficient crypto mining industry can generate more job opportunities in Africa as the demand for miners, blockchain specialists, and technology specialists increases, . This encourages nations to enhance their energy and technological capacities to support crypto operations. These enhancements can considerably benefit other industries and the economy as a whole.

African nations must embrace the chance to become a crypto mining hub. This can aid in the digital economy’s growth, citizens’ financial standing, and the infrastructure for energy production. Consequently, African governments can invest in cryptocurrencies to acquire alternative funding sources for developing renewable and alternative energy sources.…

The Arab Bank for Economic Development in Africa (BADEA) has been a key player in Senegal’s economic landscape since 1975, working diligently to promote economic and social development in the country. Dr. Sidi Ould Tah, the Director General of BADEA, sheds light on the bank’s mission, projects, and strategic partnership with Senegal in his conversation with African Business portal.

BADEA’s Mission and Operations in Senegal

As a multilateral development bank owned by 18 Arab States, BADEA’s mission is to foster cooperation between Arab countries and Africa through investments and trade. The bank operates in four main areas: infrastructure, private sector development, agricultural value chains, and support for SMEs, with a focus on women and youth entrepreneurship. However, such a business niche for investment as online gambling still remains untapped, so there is ample opportunity for new cooperation in this area. For example, the 7alalcasino website dedicates its various services to …

Africa is a strong contender for developing technologies such as blockchain and cryptocurrency owing to the continent’s growing mobile tech adoption rates. Considering the turbulent global financial markets, expensive remittance costs, and restricted banking access, blockchain in Africa offers alternatives to tackle their day-to-day issues.…

Currently, Africa is over-exposed to the impact of the US Dollar. Thus, African nations must either act individually or together to mitigate these effects. Dollar strength bursts are cyclical. Therefore, there should be enough time to implement efforts before the next one occurs. African governments have recognized the harm done in the previous year and should work round the clock to find a lasting solution.…

Regionalising the power balance between central and commercial banks can address the risks associated with the adoption of CBDCs in Africa. Commercial bank digital wallets can thus reduce the costs underlying the correspondent banking channels. These wallets can also promote cross-border trade in Africa by restricting the focus of central banks to the B2B and interbank payment ecosystems. Central banks have traditionally managed this well while incorporating these systems across borders. In such a scenario, each actor—public and private—does what it does best.…