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- Since President Félix Tshisekedi took power in January 2019, DRC has been pitching and welcoming international and regional investors in Kinshasa.
- President Tshisekedi has struck mining and agriculture investment agreements with Chinese companies.
- In July, UAE signed a $1.9 billion deal with a state mining firm in the DRC to develop four mines in eastern Congo. South Africa struck electric batteries deal with DRC in July, too.
Across the Democratic Republic of Congo—the second largest country in Africa—the weather is friendly, and the policymakers in Kinshasa have been steadily turning the tide, making DRC a hub for investments.
A stroll down the streets of Kinshasa, a city of over 13 million bustling with activity, heavy clouds are keeping the glare of the tropical sun at bay. The capital’s streets are busy and crowded. The traffic is congested and millions rub shoulders on the sidewalks. To my utter shock, in Kinshasa,…
In recent years, Africa has emerged as a promising destination for global investment, with its vast natural resources, expanding consumer markets, and growing middle class. As the continent’s economies continue to strengthen and diversify, global players increasingly recognise the potential for mutually beneficial partnerships. The United States has significantly contributed to Africa’s economic transformation among these partners.…
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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.…
In the last 20 years, Africa’s external debt has grown fivefold to about $700 billion. According to Chatham House, a policy centre in London, Chinese lenders account for about 12 per cent of that amount. As of November 2022, the International Monetary Fund (IMF) and the World Bank considered 22 low-income African countries to either be in debt distress or facing potential external debt distress.…
In recent months, the discourse about de-dollarisation has gained momentum. The sanctions against Russia have exposed the danger of over-dependence on the US dollar in international trade. The recent foreign exchange challenges have also recharged the growing efforts to bolster other currencies.
De-dollarisation could soon become a reality. A BRICS substitute to the dollar could enjoy high prospects for success, a former White House adviser, Joseph Sullivan, has noted. Sullivan served as a staff economist at the White House Council of Economic Advisers during the Trump administration. According to him, a potential BRICS currency poses a unique threat to the dominance of the US dollar in international trade.…
The global financial landscape has undergone a remarkable transformation in recent times. Remarkably, the issue of the de-dollarization of international trade is slowly but steadily gathering momentum. A rising trend toward de-dollarization is challenging the longstanding supremacy of the United States in the international financial system. As the dominant global reserve currency, the US dollar remains pivotal in international trade, investment, and financial transactions.…
- Trade between China and Tanzania grew by 23.7% year-on-year, reaching US$8.31 billion in 2022
- China pledges increased cooperation under its Global Development Initiative
- As of 2022, trade volume between China and Africa reached US$282 billion dollars, an 11.1% year-on-year growth.
China-Tanzania relations can be measured in growing trade portfolios and can be seen in Chinese President Xi Jinping’s choice to make Tanzania the first African country to visit when he came into power in 2013.
Not only was Tanzania President Xi’s first African country to visit but his first overseas trip since assuming the presidency.
In his speech 10 years ago, delivered at the Julius Nyerere International Convention Center which was built with Chinese assistance, President Xi cemented relations between the two long-term friends and partners.
In his speech titled; “Be Trustworthy Friends and Sincere Partners Forever,” President Xi emphasized the principles of sincerity, goodwill, good faith, and pursuing the …
- The prospect of establishing a common currency will be a top agenda at the upcoming BRICS Summit in Durban, South Africa later this year.
- The Shanghai Cooperation Organization (SCO) is working towards trading in their own national currencies.
- Roughly 40 percent of international trade transactions in goods are invoiced in dollars
The prospect of establishing a common currency will be a top agenda at the upcoming BRICS Summit in Durban, South Africa later this year.
Should the common currency be formed, it will be based on a basket of the currencies of the BRICS countries; the Chinese RMB Yuan, the Russian Ruble, the Indian Rupee, the Brazilian Real, and the South African Rand.
Russian Foreign Minister Sergey Lavrov has on several occasions announced plans by the BRICS countries to unify their currencies and untangle themselves from dollar dependency.
At a media conference during his Africa tour at the start of …
- Tanzania inflation hits five year high
- Zanzibar bans export of food commodoties ahead of Holy Month
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Tanzania’s annual inflation rate has hit its highest point in five years clocking 4.9% in January 2023 and at the close of February the rate was no better.
According to the Tanzania Central Bank The Bank of Tanzania (BoT), the prices of food & non-alcoholic beverages went up by 9.9% up from 9.7% in December of last year.
The BoT monthly economic update report showed similar increase in prices across all sectors and indicator that the cost of living in Tanzania has increased drastically. Wit no matching increase in income, this means that the burden of acquiring daily basic needs like food has become worse for Tanzanians.
With percentages in the brackets here are how several sectors are suffering from price increase in Tanzania: Transportation (6.2% …
- 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.