Browsing: Sub-Saharan Africa

This year’s progress has been threatened by Russia’s invasion of Ukraine, which has caused a global economic shock that has hit Africa at a time when the government’s policy space to respond to it is small to nonexistent.

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.

As far as where to put money is concerned, Kenya has numerous investment sectors with tremendous potential. The prospective stability and economic recovery expected under the new administration will no doubt make way for the realization of huge money investments in the countries.

The continent in the near future will have the largest population in the world. The population of Africa is urbanizing as citizens of the nations of the continent migrate from rural to urban areas.

This addition to its vast natural resources is a potent combination for its rapid economic expansion. The world witnessed first-hand the economic miracle where China transformed itself from a rural backwater in 1949 when the modern Chinese state was founded to an economic and military superpower by 2019. The year 2019 is significant to China because the country celebrated 70 years of its founding as a communist state, and the Asian country gained worldwide recognition as a military superpower.

China put on a military parade that displayed a weapons arsenal that made the United States sit up and take notice. How was this possible? China’s economic transformation was because of several factors. One of the most important factors was and remains the rapid urbanization of its population, driven by the migration of millions of Chinese citizens from the rural areas to the booming metropolises. This urbanization increased the demand for natural resources and commodities needed to construct cities, roads, and infrastructure needed to support a rapidly expanding economy.

Kenya has not been left behind in the growth and development of technology. East Africa’s richest economy stands tall in the development of digital technology. However, a lot needs to be done, and the new administration has enough space to execute its plan regarding the advancement of the Kenyan digital space.

Nations launched the AfCFTA as one of the actions made to support more extensive intra-African trade. The AfCFTA aspires to establish a unified continental market for goods and services. The agreement seeks to harmonise the continent’s various trade liberalization procedures and promote regional integration. Each African nation is a member of at least one of the continent’s approximately 30 bilateral or regional trade agreements.

Africa suffers from marginalization in the global trade system. Nevertheless, the African Regional Trade Agreements heralded a new age of economic integration with significant trade creation impacts. The path to free trade poses several significant obstacles and concerns that African governments must solve.

It remains uncertain how long this economic downturn lasts or which businesses and investors will remain standing when it ends. Nevertheless, many tech startup players believe that the African digital ecosystem will remain relatively unscathed.

This moment provides a chance for Africa-focused funds to flourish. The African tech startup industry offers the funds tremendous possibilities to invest at a low cost. The best businesses find footing at times like these.