Browsing: China

• Tanzania inflation hits five year high
• Zanzibar bans export of food commodoties ahead of Holy Month
• China reopens market, expected to speed global recovery

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.

They …

The Central Bank of Kenya (CBK) has retained the base lending rate in the country at 8.75 per cent, citing easing inflationary pressure and positive macroeconomics outlook.

CBK’s decision making orga­­­­­n –­­­­­­­­ Monetary Policy Committee (MPC) met on Monday  against a backdrop of a weak global growth outlook, decline in global commodity prices, easing inflationary pressures, geopolitical tensions, persistent uncertainties, and measures taken by authorities around the world in response to these developments.

This includes the back-to-back fed rate hikes witnessed in the US as the country navigated high inflation which hit a peak last year.

Kenya’s overall inflation decreased to 9.1 per cent in December 2022 from 9.5 per cent in November, mainly due to lower food prices.

Food inflation declined to 13.8 per cent in December from 15.4 per cent in November, largely driven by a decrease in prices of maize and milk products.

This is pegged on …

• China reopening after lifting restrictions under the zero-Covid-policy
• 2023 to be a tough recovery year for Beijing
• President Xi Jinping to lead China recovery

As China is about to finish the Year of the Tiger in January in what was meant to be a year of recovery, what is in store for Sino-Africa relations?

President Xi Jinping has had his hands full this past few years the least of reasons not been the Covid-19 that has severely slumped China’s otherwise skyrocketing economic trajectory.

To keep its people safe and to some extent, to show the world that it is taking all measures to prevent the mistakes of 2019 that led to the spread of the Covid-19 pandemic. Whether it is a US-Euro politically triggered compliance, or its own strong arm, China has gone over and above the general world’s response post the pandemic.

Beijing, initiated its zero-Covid-policy, characterized by widespread …

Xi Jinping has elevated the China-Africa friendship to its most significant level since Mao Zedong’s reign. With Xi getting a third five-year term and perhaps staying in power even longer, those relations will strengthen further. Thus, Africa will remain pivotal in China’s plans for global economic control.…

The diplomatic Somalia-China relations have played a crucial role in the Chinese government’s development of over 80 infrastructure projects in Somalia, including the national stadium, Banadir hospital, and north-south highway.…

Kenya is one of 23 African nations at risk of debt distress. The major causes of debt distress include poor fiscal management and macroeconomic frameworks to sustain growth, a shift in debt structure toward more costly financing sources, and excessive government expenditure levels.

Kenya’s debt was at about 70 per cent of GDP in 2021, up from 50 per cent in 2015. China is Kenya’s biggest bilateral creditor. It accounts for 67 per cent of the bilateral debt (primarily for infrastructure projects), an increase from 13 per cent in 2011.…

Policymakers must advocate for pooling resources to support the most affected, particularly in Africa. They can financially support and share land restoration and climate adaptation technologies. Collaborations to expand inclusion that can attain a new paradigm in climate change mitigation.

The leaders of the major polluting nations and donor countries, as well as the leaders of African nations—must commit to implementing policies, allocating resources, and taking the necessary actions to address the deteriorating climate situations globally.…

The signal coming from the CCP congress is that the world should not expect a change in policy against Covid anytime soon despite its important ramifications for the global economy. On the domestic front, the economy of China has not been doing well. Ever since its economy started to slow down, unemployment has been on the uptick, with at least 20% of young people in China said to be unemployed. 

China is also in the throes of a housing crisis, with several large property developers on the brink of financial ruin and or bankruptcy. The case of the Evergrande Group is the most prominent. The property company rose to prominence by developing massive housing projects fueled by the availability of cheap credit from the government first and from private lenders.

The urbanization of China through the migration of citizens to urban areas drove demand for apartments. Developers eager to satisfy …

The rising commodity prices, surging inflationary pressures, and the contracting global financial situation have risked African trade and production capabilities. Moreover, the rising threat of sovereign defaults poses a severe risk to the growth of African trade. Thus, African trade prospects remain unclear, considering the challenging global economic scenario.

The Covid-19, energy and food shortages have hit with the countries having minimal or no policy space to respond. As a result, African countries have fallen into a real risk of debt distress and even possibilities for sovereign debt default.…