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Author: Martin Mwita
Economies the world over have made significant recoveries from the effects of the Covid-19 pandemic, Russia-Ukraine conflict and disruptive supply chains with positive growth recorded in 2022.
Many of these key economies are in Africa.
However, majority of the African continent remains highly exposed to risks that could hinder growth in 2023.
One of the major concerns is debt serving, where African nation’s debt as a percentage of GDP has been rising faster than expected over the past decade.
It is estimated on average that most African nations’ Debt to GDP ratio, as of 2022, stands at 24.1 per cent with some countries having even higher rates.
About 35 per cent of the continent’s external debt is owed to banks, asset managers and oil traders in the West, with Chinese lenders accounting for around 12 per cent.
Of the about $444 billion in debt repayments governments in the continent will
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Nearly 90 per cent of the world’s trade is carried by the global shipping industry.
Without shipping, global cargo trade via imports and exports would essentially cripple nations and international markets.
The sector was heavily hit by the Covid-pandemic disrupting global supply chains yielding a sharp increase in freight costs.
This came with the partial closure of key ports in China, one of Africa’s leading market sources.
Despite this, data shows China-Africa trade reached $185.2 billion between January and September 2021, up 38.2 percent year-on-year.
As shipping lines suspended operations, many factories followed suit essentially shutting down much of the global international trade.
Following the 2020 global shipment shutdown, another shipping crisis forced goods to be locked down for weeks.
The blockage of the Suez Canal by giant cargo vessel, the 400 meter-long-Ever Given operated by global shipping firm Evergreen, became wedged across the Suez after being blown off course
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- Remittance flows to developing regions were shaped by several factors in 2022 including reopening of host economies as the COVID-19 pandemic receded.
- Remittances as a share of GDP are significant in the Gambia (28%), Lesotho (21%), and Comoros (20%).
- Industry data shows most of the funds go towards supporting families in purchase of food and household goods
Remittances to Sub-Saharan Africa grew by 5.2 percent to $53 billion in 2022 defying the effects of the global crisis.
World Bank’s report on Migration and Development however noted that the growth slowed from the 16.4 percent that was recorded in 2021.
“Remittances in 2023 are projected to soften to 3.9 percent growth as adverse conditions in the global environment and regional source countries persist,” noted the report.
Flows to Nigeria and Kenya have continued to dominate remittances to Sub-Saharan Africa although the region remains highly exposed to the effects of the global …
The index signalled a solid decline in operating conditions, albeit one that was slower than those seen in April 2021 and during the second quarter of 2020.
“Economic activity started 2022 on a subdued note as evidenced by the Stanbic PMI reading that fell to the lowest level in nine months. The reading was below 50 which indicated a deterioration in business conditions from December,” Kuria Kamau, Fixed Income and Currency Strategist at Stanbic Bank commented.
While export demand grew marginally, domestic demand fell significantly as client spending was negatively affected by rising inflation and a resurgence in Covid-19 due to the Omicron variant, he noted.…
Tony Elumelu, the Founder of the Tony Elumelu Foundation, has urged African, Caribbean and Pacific (ACP) Heads of State to improve the business environment in their countries in order to drive industrialisation and wealth creation.
Elumelu who is also the Chairman of the United Bank for Africa and Heirs Holdings said this whilst presenting the keynote speech on the theme “Industrialisation and Private Sector Engagement for Economic Transformation of ACP States” at the Presidential Dialogue of the 9th ACP Business Summit in Nairobi, Kenya.
READ ALSO:African, Caribbean and Pacific nations to defend trading systems
Elumelu stated that industrialisation will not be achieved without support for Small and Medium scale Enterprises (SMEs) and improved access to electricity.
“We cannot hope to industrialise if we do not fix the issue of power. If our entrepreneurs are spending so much of their resources to power their businesses, how …
Africa, Caribbean and Pacific (ACP) group of nations will strongly defend multilateral trading systems in order to protect themselves from unfair trade practices, its leadership has said.
This has emerged from the 9th African Caribbean and Pacific Summit of Heads of State and Government in Nairobi.
READ:Africa, Caribbean and Pacific leaders expected in Nairobi for ACP Summit
Kenya’s President Uhuru Kenyatta, who has taken over the chairmanship of the group of 79 countries said.
He will spearhead reforms and reinvigoration of the ACP for the next three years.
He said that under his stewardship, Kenya will seek to promote and protect the interests of the group at the regional, continental and international levels.
“I will also champion the group’s solidarity and unity; advocate for an enhanced intra-ACP and South-South and Triangular Cooperation; Champion a Reform Agenda for the ACP Group; push for the integration of our States into …
Kenya’s President Uhuru Kenyatta has underscored the need for East African Community member states and the wider region to nurture peace and unity, saying colonial boundaries should not divide people.
The President said the region stands to achieve faster development if its people work together in peace and harmony.
READ ALSO:EAC countries rank among world’s rising stars of global trade
“We need to live together as brothers and sisters and respect all communities in the region,” the President said.
The President was speaking at State House, Nairobi, during a meeting with King Abdile Wabar Abdi, the Ethiopian-based traditional leader of the Degodia community found in Kenya, Ethiopia, Somalia and Djibouti.
King Abdi, who was accompanied by a huge delegation of members of the Degodia community from Kenya and Ethiopia, delivered a message of peace and unity to the President.
President Kenyatta said cultural diplomacy should be used as a …
Kenya’s low-cost carrier Jambojet on Monday made its first trip to Kigali International Airport as it launched scheduled flights between the Rwanda’s capital and Nairobi, bringing competition to RwandAir.
With the launch of once daily flights from its Jomo Kenyatta International Airport hub, Jambojet officially becomes the first low-cost carrier to fly the route.
READ ALSO:Jambojet cuts fares by 50 per cent in 72 hour sale offer
This now brings competition to RwandAir’s doorstep which also flies to Nairobi at least three times a day. It operates domestic and international services to East Africa, Central Africa, West Africa, Southern Africa, Europe the Middle East and Asia, from its main base at Kigali International Airport in Kigali.
READ ALSO:RwandAir eyes more presence in New Zealand and Australia
READ:Qatar Airways plans to buy shares from RwandAir
Jambojet which recently expanded their fleet with two brand new De Havilland Dash …
India’s national airline has re-launched commercial operations to Kenya’s capital Nairobi, making a return to the route it abandoned a decade ago.
Air lndia’s flight from Mumbai to Nairobi landed at the Jomo Kenyatta International Airport (JKIA) on Wednesday with 100 passengers on board.
READ ALSO:KQ boosted by increased India flight deals
This marked the return of the airline to Kenya after 10 years. It return is now seen a s a major boost for trade, investment and tourism activities between the two countries which have shared trade and economic ties for many years.
The airline will offer four direct flights a week-Tuesday, Wednesday, Friday and Sunday with plans to offer additional flights in the pipeline, it said during the launch.
READ ALSO:Kenya woos India in agribusiness trade ties
According to tourism industry players, Air India will be instrumental in increasing uptake from both Tier I and II …
Standard Chartered Bank (SCB) Kenya has launched a prestigious product offering – the Standard Chartered Visa Infinite credit card.
The Standard Chartered Visa Infinite credit card, targets the affluent segment by offering a range of value added benefits, including best-in-class privileges.
Targeting high net-worth customers SCB Visa Infinite credit card, comes with unparalleled advantages and rewards.
“We are constantly working towards bringing to our clients the highest quality of services available on the global market. The launch of the Visa Infinite credit card shows our bank’s commitment to bringing payment solutions that meet and exceed the expectations of our ever-expanding clientele,” CEO Kariuki Ngari said on Wednesday.
“As a leading issuer of credit cards in Kenya, we continually look at ways of becoming more customer centric,” he added.
The new Standard Chartered Visa Infinite credit card is in-line with the bank’s strategy to consistently deliver premium services to its “valued …