Browsing: Africa’s Economy

The flower industry is among the most affected in Kenya. The IMF says that the coronavirus pandemic will cause a recession in 2020 that could be worse than the one in 2008-2009. www.theexchange.africa

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.

Tala’s next mission after freezing operations in

Somaliland economic growth on the rise

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.”

Also Read: 10 companies revolutionising blockchain technology in Africa

President Bihi said that in 2019, his government …

Africa’s CEOs forecast low revenue growth

Chief executives of firms operating in Africa are concerned about weaker than expected growth in revenues in 2020, largely due to policy uncertainty, over-regulation, exchange rate volatility and instability in the global financial markets.

According to A global survey of chief executives released by consultancy firm PricewaterhouseCoopers, over 50 per cent of top company executives in Africa see uncertain global economic growth and policy uncertainty as key threats to their continental operations, followed by social instability, geopolitical uncertainty and exchange rate volatility.

The global annual survey seeks to understand the environment in which companies operate globally. Other issues facing Africa’s CEOs are inadequate basic infrastructure, protectionism, cyber threats and tax uncertainty.

According to the report, 3 per cent of African CEOs say to expect the global growth to remain the same while 53 per cent say it will decline this year and 20 per cent say global growth will improve.…

ATIGS Dubai 2020

One of the biggest issues in many African countries is economic inclusion. Regardless of whether we are talking about development, sustainability or natural resources, finding equilibrium between economic growth and social development has been a challenge for both governments and foreign investors alike. One of the most successful ways to create and sustain this equilibrium is through entrepreneurship.

With the majority of African nations diversifying from traditional sources of income, entrepreneurship is increasingly seen as a key to economic growth. FurtherAfrica spoke to Bako Ambianda, a rising star of African entrepreneurship. Born in Cameroon, the son of a politician, Mr. Ambianda started his first small business in Cameroon when he was only 18 years old and never looked back. Today he is the Chairman and CEO of Labacorp Group, an African holding company that he founded, with a diverse portfolio in key economic sectors including renewable energy, …

In addition to the tragic toll on human lives, the coronavirus outbreak in China brings potential economic and market implications for China and beyond. Franklin Templeton Emerging Markets Equity team has been monitoring the situation and weighs in with some thoughts, comparing it to the outbreak of SARS in 2003.

We are closely monitoring the impact on emerging market economies and equity markets from the outbreak of the coronavirus in China and other parts of the world. The situation is at an early stage and is evolving quickly. Both market and macro implications depend on the severity and duration of this epidemic episode.

What We Know So Far

  • Since the first cases of the 2019 Novel Coronavirus (2019-nCoV) were notified to the World Health Organization (WHO) on December 31, 2019, over 4,500 confirmed cases have been reported in China, with over 5,700 suspected cases and 106 deaths.1Based on

Ahead of the Baker McKenzie African Transactional Summit taking place in Johannesburg in May 2019, Baker McKenzie lawyers based in Africa, alongside the Firm’s global Africa specialists, as well as lawyers from our African Relationship Firms from across the continent, share their knowledge about what investors should consider when transacting in Africa.

Accept the uncertainty and gather knowledge

Investors in Africa must consider geo-political and economic uncertainty on the continent as well as a plethora of country and region-specific governance, compliance and regulatory challenges when investing in the region. They must also contend with a critical lack of infrastructure and poor integration when transacting across borders in Africa.

In order to close deals on the continent, investors need access to the right information and data. The success of a transaction depends on having real knowledge instead of relying on market perception. For markets where there is a lack of …

World Bank has projected that by the year 2060, Africa’s population will be as much as 2.7 billion people; Sub-Saharan Africa’s population is estimated to be at 860 million.

At the moment, at least 60 percent of Africa’s population is under the age of 25. This figure also indicates that Africa has one of the largest youth populations in the world.

Africa’s economy has to be in proportional progression to keep up with the ever-rising population. Needless to say, the digital economy is indispensable as it intertwines creative and innovative technological solutions that not only reshape traditional marketing endeavors but also changes people’s lives completely.

It is not surprising to see that there is very little understanding of the digital economy in some African countries. Youth are most likely victims in less democratized regimes as such systems impede democracy by limiting active digital spaces for public participation through constructive dialogue …