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Browsing: Africa’s Economy
African countries have started recovering from the effects of the COVID-19 pandemic after most economies shrunk due to the crisis.
The continent is home to over a billion people who live in low, lower-middle, upper-middle, and high-income countries.
The economy in the Sub-Saharan Africa (SSA) region is projected to expand by 3.6 per cent in 2022, down from 4 per cent in 2021, according to World Bank.…
Because emigrants bring with them more than just economic needs from their home countries, migration is a trade stimulant in and of itself. With this movement, there is increased demand for housing, food, transportation and other services which are beneficial to local economies.
In addition, migrants can serve as bridges to a wider market because they promote trade and tourism in their home countries, thereby creating demand.
The diaspora population's needs can be met if the African economy is stimulated by the trade-in African heritage. While there are many reasons for migration, one of the most important is joblessness, both within Africa and to other parts of the world. …
HOW DONORS CAN DRIVE ECONOMIC GROWTH AND DEVELOPMENT IN AFRICA THROUGH A NEW MODEL OF PHILANTHROPY
Foreign aid has been a key driver for social and economic growth, as well as bridging the domestic development ﬁnancing gap in Africa. Unfortunately, the continent has not utilized the tremendous value of philanthropy to unlock market shaping and economic growth opportunities as it should. Countries in Africa therefore need to rethink how they approach development ﬁnancing by exploring philanthropy as a tool for the scale-up of impactful solutions driven by market-based, self-sustaining approaches.
One of the ways economies in the global south progressively leap out of poverty is by opening up spaces for more innovative use of philanthropic capital to spark up the ecosystem for innovation that delivers sustainable economic and social value.
Patient capital is an interesting new trend in development that is changing the way the world looks at
Imagine an Africa where farmers can detect parasites in their livestock by a simple scan of a handheld machine. Where road networks allow swift transportation of produce to markets. Where farmers can access finance and be adequately insured against natural disasters by a simple click of a button.
The reality across the continent is one of underdeveloped, underserved rural areas. Women dressed in traditional garb carry buckets of water over long distances. There is no electricity or running water and very little internet access. According to World Bank statistics 56% of Africans live in rural communities. Recent trends have shown a high rural to urban migration rate. This migration has resulted in high urban densities, rising crime rates and overcrowding in the urban areas. Neither of these situations is amenable. Which brings into light the need to empower rural communities to support economic resilience in Africa.
Also Read: COVID-19
The African continent takes pride in its rich natural resources. The continent boasts of a wide range of minerals, oil, gas, and wildlife among many other commodities. Most African economies are heavily dependent on these resources. Revenue for most is mainly commodity-driven for example, Botswana’s diamonds make up 90% of the country's total exports. In Nigeria, oil accounts for more than 80% of exports and Zambia is reliant on its copper mines for 70% of its exports.
In the majority of cases, African countries are net exporters of the raw commodity making them more vulnerable to the price shocks and changes in demand. Facilitating trade within Africa may be the roadmap to unlocking Africa’s economic potential.
Two of Africa’s largest trading partners, the US and China, have been dueling for world economic dominance. There
The disproportionate and negative impact of the pandemic on women and girls, especially in the economic sphere, creates a need to place women at the centre of all response initiatives.…
For almost a decade now, China’s presence in Africa continues rumbling the West which has been relegated to an almost observer state by the Asian giant.
As the latest scramble for the resource-rich continent gathers pace and with the shift from aid dependence to homegrown solutions, China has been a welcome handyman in fixing problems through expensive infrastructural projects commissioned by leaders who have a huge legacy stake in them. However, these projects are raising more questions than answers from citizens and observers.
The questions arise from the fact that in real life, the economies have not been growing as much as they are depicted in papers and flamboyant GDP plans. Again, many nations are now stuck in the red since in a state of distress as loans fall due and with no means to service them.
These African nations are having …
We are in a recession!
This is the stark reality that the world is facing and it has come sooner than many have predicted thanks to the covid-19 coronavirus. Already, the world is reeling from shock at the sheer magnitude of effect the virus has had on every aspect of life.
In addition to the lives and man-hours lost, the world will take a long time to recover from the hit. The global economy has suffered massive losses since the WHO announced the threat of the disease which was made public globally on December 31, 2019.
Already, airlines have started manifesting the effects of the coronavirus outbreak with Kenya Airways (KQ) staff taking a pay cut starting with newly appointed CEO Allan Kilavuka who will see his salary whittled down by 80 per cent from the 35 per cent he had announced earlier.
Somaliland economic growth is on the rise despite the country’s unique economic constraints.
Somaliland President Musa Bihi during his annual address to the nation, said in fiscal 2019 its revenue increased by 4.5% which shows the efforts and capabilities of the National Revenue Authority.
“The economy is the basis for the development and transformation of life and society in every country. Therefore, the government is focusing on the development of the Republic and the promotion of the national economy,” Bihi said.
“The GDP growth rate in the UK has increased by 2% in the last two years, whereas the economic growth in Africa is estimated at 3.4% in 2019 by the United Nations. This indicates that Somaliland’s economic growth is on the rise, despite the unique economic constraints of the Republic of Somaliland.”
President Bihi said that in 2019, his government …