Author: The Exchange

Employment in Egypt’s private sector contracted in November, marking the fastest decline since February 2024. This dip was largely attributable to companies opting not to replace departing staff due to weakened sales and subdued optimism. Across the industry, purchase prices of goods increased partly due to a stronger US dollar against local currency. Egypt’s private sector continued to face persistent challenges in November, with a drop in employment levels reflecting waning optimism across industries. According to the latest S&P Global Egypt Purchasing Managers’ Index (PMI), economic uncertainty and weak customer demand stifled growth prospects for the North African country, forcing…

The Lobito railway project is central to Biden’s inaugural visit to Africa. President Biden seeks to enhance United States influence through the establishment of an additional rail connection to Zambia. A primary reason for the investment is to secure access to Africa’s abundant mineral resources. Lobito Railway Central to Biden’s Africa Visit President Biden, undertaking the inaugural visit to Africa by a sitting U.S. president in nearly a decade, considers the trip as an opportunity to mitigate Chinese influence in the continent and gain access to essential minerals that are vital for transitioning the global economy away from carbon-based fuels. Central…

Namibia elections on Wednesday might be the most competitive election yet for the ruling SWAPO party. SWAPO has seen its popularity dwindle in Namibia as the populace grows increasingly frustrated with corruption, excessive inequality, and a lack of employment opportunities. Namibia’s election system allocates the 96 elected seats in the National Assembly based on the percentage of the votes won by each party. Socioeconomic Political Dynamics in Namibia Elections According to the World Bank, Namibia is an upper-middle-income country with high levels of poverty and inequality. According to a government study in 2021, 43 percent of the population lives in…

Zimbabwe hosted creditors, partners, and finance executives to discuss an ambitious move to pay off $12.7 billion in foreign debt.  Zimbabwe, once a regional breadbasket but now struggling to feed its people, must get back on track with bilateral creditors to access finance. Zimbabwe aims eventually to again tap international capital markets. Zimbabwe debt repayment plan In a long-anticipated move, Zimbabwe’s president met with creditors and financial executives on Monday in Harare to discuss ambitious plans to pay off $12.7 billion in foreign debt and get the country back on track to access international capital markets. With a debt-to-GDP ratio…

More than 200 countries agreed upon the COP29 climate deal despite the chaos. The deal would provide $300 billion yearly by 2035, increasing rich nations’ earlier pledge to provide $100 billion annually in climate finance by 2020. Rising inflation and geopolitics like Russia’s war in Ukraine and growing turmoil in the Middle East have caused Western countries to view global warming slide down their list of national concerns. A $300 Billion COP29 Climate Deal On Sunday, countries attending COP29 in Baku set a $300 billion annual global financing target to assist less developed countries in dealing with the effects of…

Unlike conventional bonds that generate returns through fixed interest payments, Sukuk generates returns through the ownership of underlying assets, thereby avoiding the prohibitions of Riba (interest) and excess Gharar (uncertainty). Global Sukuk market has witnessed significant growth over the last two decades, diversifying its presence across regions such as the Middle East, Southeast Asia, Europe, and Africa. The outlook for the sukuk market indicates a continued upward trend, with projections suggesting it will reach $2,160.55 billion by 2028. Sukuk, commonly known as Islamic bonds, represent a unique financial instrument in the context of Islamic finance, distinguished by their adherence to…

The Adani Group indictment points to serious irregularities, including corruption, financial misconduct, and possible violations of international trade laws. Kenya’s president William Ruto has cancelled the deeply unpopular Adani’s multimillion-dollar deals for power transmission and airport modernisation projects. The indictment against the Adani Group marks a turning point, not just for the conglomerate but for its stakeholders globally. The Adani Group, headquartered in India, is a multinational conglomerate with varied interests in ports, energy, logistics, and agriculture. Known for its aggressive expansion approach, the company has been crucial in developing critical infrastructure projects globally. The multi-billion empire, now faces one of…

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…

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…

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…