Browsing: Africa

Strong US dollar

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.…

The World Bank is getting a new president, potentially it will be the United States nominated Ajay Banga who for his first global tour, chose to visit Africa first, what does that maiden tour mean for the continent? Photo/Bloomberg
  • US World Bank President nominee Ajay Banga chooses Africa for his first tour
  • AfDB president Dr. Akinwumi Adesina calls for a new measure of economic growth
  • AfDB launches Adesina Africa Industrialization Index (AII)

The World Bank is getting a new president and it will be likely US-nominee Ajay Banga who for his first global tour, chose to visit Africa. What does this maiden tour mean for the continent?

Back in February, US President Joe Biden announced Ajay Banga as the United States’ nominee for President of the World Bank Group. Should he be approved, Ajay Banga will be replacing the incumbent president, David Malpass, whose term ends in June.

Among his first moves on his way to the top office in the world’s largest financial institution, Banga, is making a strategic visit to Africa.

For the first stop of his World tour, Mr. Banga flew to Abidjan Côte d’Ivoire on …

Wealth in Kenya
  • Kenya’s ultra-wealthy performed better than their counterparts elsewhere in the world in 2023 
  • The world’s wealthiest saw their fortunes slashed globally by 10% in 2022 owing to challenges including post-pandemic property price falls, soaring energy prices, and surging inflation 
  • Africa’s super wealthy saw the lowest losses, recording an overall drop of just 5%

Kenya’s wealthy fared better than the wealthy anywhere else in the world during the economic turmoil of 2022, retreating from international citizenships and foreign property in favour of Kenya and Africa as safe havens.

This is according to the 2023 attitudes survey issued with Knight Frank’s annual Wealth Report. As per the survey, the world’s Ultra-High Net Worth Individuals (UHNWIs) saw their fortunes slashed globally by 10% in 2022 on a cocktail of post-pandemic property price falls, soaring energy prices, falling stock markets, and surging inflation and interest rates.

The super-wealthy in Europe were by far the …

The much acclaimed African Continental Free Trade Area (AfCFTA) that came into being last year may just have saved Africa from the new unfolding World trade order. Photo/UN
  • The change in patterns of trade triggered by these two major events is now forcing the MNCs to go back to the drawing board.
  • MNCs need to reconfigure their trade routes. They have to re-lobby for assured capital and they have to broker new destinations for their goods.
  • With the changing global trade polarities, the MNCs are rethinking China, and eyeing future giants like Africa. 

The much acclaimed African Continental Free Trade Area (AfCFTA) that came into being last year may just have saved Africa from a new world trade order.

Thanks to the global pandemic and then the Russia-Ukraine war, the plate tectonic of global trade is shifting. The resulting divergence and convergence are squeezing and pulling in different directions.

Multinational Companies (MNCs) have, for the last three decades or more, controlled trade. These international corporations have enjoyed the fruits of globalization more than any other business entity.

They

Youth unemployment in Africa

Over the past decade, addressing the three pressing needs of the youth—education, engagement, and livelihoods—has become a central tenet of global and continental policy discussions. The United Nations Sustainable Development Goals (SDGs) consider youth as essential partners for achieving inclusive and peaceful societies.

Africans of all ages seem to understand that if the youth are suffering and unable to establish productive livelihoods, it becomes a societal problem. As such, many agree that there is a need for intervention from the government and other stakeholders in addressing the challenge of youth unemployment in Africa.…

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Argentina & Brazil Joint Currency Lessons for Africa

The two south American nations are exploring methods to increase bilateral commerce and wean themselves off the mighty US currency. Its announcement has been widely criticized since they are not a natural fit for a single currency. This is due to one country's relative economic prosperity and the other's economic upheaval. This experience between Brazil and Argentina is instructive and illustrative for African nations with comparable aspirations to develop a single currency.

  • Brazil and Argentina announced early last month that they would create a joint currency to increase trade and political relations.
  • Similarly Africa has expressed the same ambitions at different times. The advent of AfCFTA gives further impetus to the concept that Brazil and Argentina has reignited.
  • Brazil and Argentina first came up with the idea of a joint currency in the 1980s but it never took off because economic fundamentals.
  • The joint currency experiment by Brazil and Argentina
Africa and the African diaspora has and continues to make a global impact on culture and society around the world. Music, food, art, sports, architecture, science, business, agriculture are just a few of the industries that the impact and influence of Africa and the African diaspora can be seen. www.theexchange.africa
Economic growth in Sub-Saharan Africa (SSA) softened markedly in 2022 to 3.4 per cent as inflationary pressure, weak external demand, and tighter global financial conditions, tempered post-pandemic recoveries in many countries.
Food price pressures, already significant even before the pandemic, have intensified further because of adverse weather shocks, supply disruptions worsened by Russia’s invasion of Ukraine, increased fragility and insecurity, and, in some countries, large currency depreciations.
According to the World Bank, annual food price inflation exceeded 20 per cent in over a quarter of all countries last year, dampening growth in real income and consumer demand, and deepening food in security.
A substantial deceleration in global growth and falling non-energy commodity prices have weighed on economic activity across SSA, particularly in metal exporters.
Despite a recent easing of global food and energy prices, import costs remained elevated, contributing to widening current account deficits.
Pandemic-induced weakness in fiscal positions lingered,
Actor Idris Elba speaks after he received the Crystal Award at the World Economic Forum. www.theexchange.africa

Idris Elba and Sabrina Dhowre Elba were honoured with the 2023 Crystal Award at the World Economic Forum in Davos for their leadership in advocating for poor small-scale farmers worldwide. The Crystal Award recognizes exceptional artists and cultural leaders whose contributions to society have made a tangible impact on improving the state of the world.

As Goodwill Ambassadors for the United Nations’ International Fund for Agricultural Development (IFAD) since 2020, the Elbas have been vocal supporters of greater investment in agriculture and rural development, particularly in Africa, where severe weather events and conflicts have further impacted farmers’ ability to produce food for their families, communities, and countries. Despite the vital role these farmers play in ensuring global food security, 75 percent of the world’s hungry and poorest people live in rural areas of developing countries.

The Importance of Small-Scale Farmers in Africa

Small-scale farmers play a vital role in feeding …

medical tourism in Africa. www.theexchange.africa

The African continent is home to some of the most beautiful and diverse countries in the world. From its vast deserts and savannas to its lush rainforests, Africa has something for everyone. But what many people don’t know is that Africa has great potential as a medical tourism hub.

Medical tourism refers to travelling abroad for medical care or treatments not available at home or which are more expensive there than elsewhere. With this in mind, it’s easy to see why Africa could become an attractive destination for those seeking quality healthcare services at lower costs than they would find back home.

Medical tourists mainly seek services related to cosmetic surgery, fertility treatments, dental work, orthopaedics, and cardiac care. These services are often sought due to their relative affordability in the destination country and the expertise and high quality of care that can be found in some of these countries. …

A farmer in Ethiopia prepares his land for planting post Russia-Ukraine (Credit: Pixabay) https://theexchange.africa/

Africa's human development cannot proceed until the first and most basic need—food—is met. A report by AusAID titled Improving food security in Africa reveals that over two-thirds of the population relies on agriculture for income and basic food needs. With food, fuel, and fertiliser crises that have followed the extended Russia-Ukraine crisis, the World Bank has described the current conditions in sub-Saharan Africa as "the perfect storm," which includes the COVID-19 pandemic, skyrocketing inflation, a growing debt burden, and harsh weather.

The World Food Programme's 2022 Global Report on Food Crises estimates that 140 million people across Africa are experiencing food insecurity on a regular basis.

With many countries facing food security issues, many nations have partnered with the World Bank to implement a series of short-, medium-, and long-term actions to combat the effects of food insecurity, such as overreliance on imports and persistent drought. These measures are also…