Friday, June 14

Economic Growth

Pullman Hotel Nairobi
  • Pullman Hotel Nairobi will begin operations in June 2024
  • Kenya has 31 hotels with a total of 4,268 rooms in the pipeline with an average room size of approximately 138 square feet.
  • Pullman Hotel Nairobi Upper Hill has similarly adopted the concept of “workspitality” under the co-working spaces brand WOJO.

French multinational hospitality group, Accor will unveil its first premium Pullman branded hotel in Kenya next month. This will add to Accor’s offering in the Kenyan market, which includes Fairmont the Nofolk and Mövenpick Hotel & Residences in Nairobi among others.

According to Pullman Hotels & Resorts Director of Sales and Marketing Susan Waringa, the Pullman Hotel Nairobi Upper Hill which is set to open its doors to guests in June this year will have 162 rooms offering premium hospitality.

“We’re excited about the opening of Pullman Hotel Nairobi Upper Hill, catering to the needs of the hyper-connected business and …

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Hotel room developments
  • New hotel room developments in Kenya have dropped.
  • With continued signing activity (19 hotels with about 5,200 rooms in 2023) Egypt now accounts for 28 per cent of the total pipeline.
  • When it comes to hotels under construction, Marriott International leads the way, with 138 hotels (15,011 rooms) currently being built.

Kenya has ranked seventh in Africa among the countries with the highest number of hotel room developments by international hotel chains, a drop from position five in 2022.

This is according to the latest survey by Lagos-based W Hospitality Group, in association with the Africa Hospitality Investment Forum (AHIF). From the survey, Kenya has 31 hotels with a total of 4,268 rooms on the pipeline with an average room size in these hotels is approximately 138 square feet.

North Africa continues to dominate the planned supply, with Morocco and Egypt together comprising almost 31 per cent of the …

Uganda National Oil Company
  • The Uganda National Oil Company (UNOC) is directly importing petroleum products from Vitol Bahrain, aiming to reduce reliance on Kenyan firms and mitigate high fuel prices. 
  • UNOC’s direct importation and sale of fuel to OMCs in Tanzania and Uganda is a significant step towards fostering stronger regional ties, promoting economic growth, and ensuring energy security. 

Uganda National Oil Company (UNOC) has started the sale of petroleum products to oil marketing companies in both Uganda and Tanzania.

This is part of a broader strategy to test the waters before UNOC embarks on a direct importation agreement with the global oil titan, Vitol Bahrain. This maneuver signals a new era in East Africa’s energy dynamics, especially following a cooling of relations between Uganda and Kenya over fuel supply mechanisms.

Breaking New Ground: Uganda National Oil Company Direct Importation Deal

For years, Uganda’s fuel supply chain was heavily dependent on Kenyan OMCs. However, …

SGR FINANCING
  • Kenya and Uganda agree to add 2,746 kilometers to the SGR, increasing overall cost of the project to over $19.4 billion.
  • SGR extension is part of the larger $24.1 billion Lamu Port South Sudan-Ethiopia Transport (Lapsset) plan.
  • Uganda will extend the SGR to its border with Rwanda, South Sudan, and the DRC.

Kenya and Uganda have jointly signed a communique on SGR extension financing, paving the way for an ambitious infrastructure project connecting the two economies. The initiative will guide the development of two significant railway projects, the Naivasha-Kisumu-Malaba and the Malaba-Kampala Standard Gauge Railway (SGR) links. Once the SGR extension financing is secured, the projects will be implemented in the respective countries.

The deal was formalized with the presence of Kenya’s Transport minister Kipchumba Murkomen and his Ugandan counterpart Edward Katumba-Wamala.

While Kenya has already signed commercial contracts for its SGR sections, Uganda is on track to finalize the …

Cyclone Ana causes flooding in Southern Africa Climate Home News
  • Civil unrest, electricity crisis and natural disasters in South Africa deal a body blow to the regional economy growth prospects.
  • The 2023 Southern Africa Economic Outlook indicates that the Southern Africa region’s GDP growth barely reached 2.7 percent. This level is much lower than global and African averages of 3.4 percent and 3.8 percent respectively.
  • According to the African Development Bank, Southern Africa region is now lagging behind its peers across the continent. 

The Southern Africa zone has continued to experience a slowdown in economic growth in the past year largely driven by increasing challenges in regional powerhouse South Africa. 

The south-most country on the continent has seen civil unrest, electricity crisis and natural  disasters worsen the region’s economic slowdown. Neighbouring Zimbabwe, Zambia, Malawi, Madagascar, and São Tomé and Príncipe, have also experienced intense adverse weather events.

According to a report by the African Development Bank, climate change-related crisis has

Africa's financial literacy deficit

Financial knowledge remains paramount in an era in which increasingly complex financial products have become readily available to many. Governments in different countries have put more effort into expanding access to financial services. Consequently, the number of individuals with bank accounts and access to credit products is increasing.

Financial literacy remains crucial to personal and economic empowerment, enabling people to make sound financial choices and manage their finances effectively. Africa suffers from a significant shortage of financial literacy, which hinders its economic growth and development.…

Johannesburg South Africa
  • Experts warn South Africa’s growth is too low to create enough jobs to absorb new workers entering the labor market.
  • The country’s fiscal position is projected to deteriorate due to weakening mineral revenue. Utility Eskom’s debt bailout, wage bill, and rising debt pile more pressure.
  • As a result, public debt is not expected to stabilise. And headline inflation will return to the midpoint of the target range by end 2024.

South Africa’s real GDP growth is projected at 0.1 percent in 2023, reflecting a significant increase in the intensity of power outages, and weaker commodity prices and external environment.

According to the International Monetary Fund (IMF), annual growth is expected at about 1.5 per cent over the medium term. The country is under vice-like grip of long-standing structural impediments.

South Africa’s power outage woes

For instance, South Africa is struggling with product and labor market rigidities. It …

Africa's economic growth

The implications of fragmentation and polarization on Africa’s economic growth and whether these trends will continue are unknown. What is certain is that multilateral organizations will need to continue encouraging international dialogue to promote economic integration and collaboration. As a result, one problem that emerges is whether African nations would adopt a unified stance or take a non-aligned approach in the Sino-American dispute.…

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