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- Zambia reduces interest rates on student loans by 5 per cent
Browsing: African economies
Indeed, African governments are reaping a plethora of benefits from the inclusion by international financial markets to broaden the scope of their funding sources, swiftly abandoning foreign aid and traditional multilateral institutions.
International financial markets have opened a window thereby providing a suitable platform for African governments to borrow, chiefly for capital spending through Eurobonds issuance. However, this opportunity has been watered down by overexploitation through excessive borrowing. Consequently, debt has been accumulating devoid of a meticulous assessment of risks posed and the consequences thereof, such as exchange rates and the real repayment costs for the piling debt.
The International Monetary Fund (IMF) has pinpointed a total of 17 African countries, with outstanding Eurobonds as near or under debt distress. African governments have been borrowing through issuing Eurobonds which are international bonds supplied by a country in a foreign currency, commonly in US dollars and euros which allows them
Economic transformation in Zimbabwe requires the nation to look carefully at where the rest of the world is going. The rest of the world is in the middle of the third industrial revolution driven by technology and services. These two comprise what is now known as the knowledge economy and represent a clear departure from the significance of the primary/extractive and secondary industries. These same industries are what have anchored the economy from the time the southern African country became a nation. Technology and services are where the greatest value can be appropriated, and it is in technology and services where the key to exponential growth in productivity lies.
The most magnificent thing about technology and services is that it pervades every sector of the economy and we have seen it converge with just about every area of the economy in recent times. The concept of the internet of things…
Africa has a sustainable development opportunity for business valued at US$7.7 trillion by 2030.…
For the first time in 25 years, growth in Sub-Saharan Africa (SSA) could fall to -5.1 per cent this year due to the Covid-19 which will cost the region anywhere from US$37 billion to US$79 billion in lost output.
This is a sharp drop from last year’s figure of 2.4 per cent showing that SSA is now facing its first recession in two and a half decades. Politically unstable countries are the most adversely impacted with those dependent on the export of commodities such as oil and metals, as well as the tourism sector coming in second.
An analysis by the Global Trade Review (GTR) shows that the risk of sovereign default is growing across Africa because of higher debt levels and currency risk.
In addition, reduced demand and lower commodity prices have affected oil and metals export pushing some African countries which are particularly reliant on these commodities into
The African economies are not diverse enough to help them navigate tough times like the one posed by the covid-19 coronavirus pandemic.
This means that when the sectors that are popular in these economies are hit, the countries suffer immensely and take longer to recover. This is no different now and with projections that the economies will slow to about 2 per cent growth continent-wide.
Despite Africa’s immense wealth of natural resources and human capital, limitations still remain since the countries have no capacity to add value to these resources. For instance, Africa should be producing steel but it does not since it has to export the raw materials to be processed elsewhere denying the continent the much-needed revenues.
Speaking in Kigali, Rwanda last December, the African Union Infrastructure Envoy Raila Odinga said that Africa needs to go beyond just producing the raw …
Looking for growth opportunities? Africa is a continent with huge economic potential.
It has been gradually transformed in the past 20 years and we are on the cusp of significant growth, with blossoming entrepreneurship and plenty of opportunities for smart and simple business solutions.
Africa is on the rise
Africa is a 1.2bn-person market, a number expected to double over the next 30 years. Generally, business leaders tend to overestimate the challenges of doing business in Africa and underestimate the size and potential on the African continent. Thereby not stating that the African markets are easy to do business in, but emphasising that they are worth the effort, and companies not engaged in African markets risk losing out on one of the 21st century’s great growth opportunities.
One of the fastest growing economies in Africa
Mozambique is one of the poorest countries in the world but it will see large-scale …