Browsing: Sub-Saharan Africa

Financial knowledge remains paramount in an era in which increasingly complex financial products have become readily available to many. Governments in different countries have put more effort into expanding access to financial services. Consequently, the number of individuals with bank accounts and access to credit products is increasing.

Financial literacy remains crucial to personal and economic empowerment, enabling people to make sound financial choices and manage their finances effectively. Africa suffers from a significant shortage of financial literacy, which hinders its economic growth and development.…

• The $100 million loan has been disbursed for onward lending.
• Coop Bank CEO says the funding “is most timely in view of the great need to better support our business customers.”
• The long-term tenure of the facility has significantly boosted Coop Bank’s ability to offer credit to SMEs.

The Co-operative Bank of Kenya has received a long-term seven-year funding amounting to $100 million from a consortium of financial institutions to empower Kenyan SMEs.

SMEs are a major source of employment in Kenya, providing jobs to a large number of people, especially in rural areas. They absorb a significant percentage of the labor force, thereby reducing the burden on the formal job market.

With a strong focus on climate and impact, the consortium lead DEG offers financing, advice and support to private sector enterprises operating in developing and emerging-market countries.

Loan to empower Kenyan SMEs

The loan is a Tier II …

• Africa only accounts for one per cent of the global digital economy. The US, China, and Asia hold dominant positions at 68 per cent, 22 per cent, and 27 per cent respectively.
• Ralph Mupita, President and CEO of MTN cites untapped opportunities in Nigeria’s digital economy, tipping that its potential will double by 2050 to $145 billion.
• Businesses must adapt to Africa’s evolving digital economy and embrace key trends to seize the vast opportunities in the continent.

There is a substantial gap between the digital economy of developed and developing countries in Africa. At the moment, Africa makes up one per cent of the global digital economy, while the US, China, and Asia occupy the top three spots with 68 per cent, 22 per cent, and 27 per cent of the total. This demonstrates how crucial it is for Africa to close the digital divide and capitalize on its growth …

• The new route will run on Monday, Wednesday, and Saturday every week using Boeing 787-9. This model is Air France’s leading aircraft in African skies.
• Airline’s expansion will offer travelers more choices and contribute to the growth of Tanzania’s tourism industry.
• Travel-related revenue in Tanzania nearly doubled to $2.56 billion in 2022 from $1.31 billion previously.

The first flight from Paris Charles de Gaulle to Dar es Salaam’s Julius Nyerere International Airport has been launched by Air France, the national airline of France.

Air France is demonstrating its belief in Tanzania as a destination for both business and leisure travel. The new route adds to the airline’s existing service between Paris and Zanzibar.

Air France to fly three times per week

The Boeing 787-9, a highly effective and environmentally friendly aircraft operated by Air France to sub-Saharan Africa, will fly the route on Monday, Wednesday, and Saturday every week.…

• Experts warn South Africa’s growth is too low to create enough jobs to absorb new workers entering the labor market.
• The country’s fiscal position is projected to deteriorate due to weakening mineral revenue. Utility Eskom’s debt bailout, wage bill, and rising debt pile more pressure.
• As a result, public debt is not expected to stabilise. And headline inflation will return to the midpoint of the target range by end 2024.

South Africa’s real GDP growth is projected at 0.1 percent in 2023, reflecting a significant increase in the intensity of power outages, and weaker commodity prices and external environment.

According to the International Monetary Fund (IMF), annual growth is expected at about 1.5 per cent over the medium term. The country is under vice-like grip of long-standing structural impediments.

South Africa’s power outage woes

For instance, South Africa is struggling with product and labor market rigidities. It …

• Ghana, a top gold and cocoa exporter rich in oil and gas deposits, is struggling with a $55 billion debt burden.
• About 70 percent to 100 percent of the government revenue currently goes toward servicing the country’s debt.
• It is estimated that Ghana’s debt-to-GDP will reach 98.7 percent by the end of 2023.

Crisis-saddled Ghana is seeing about $15 billion in external debt relief by 2026, the International Monetary Fund has said even as the country pursues debt restructuring plan with investors. In December 2022, Ghana suspended payments on most of its foreign debts effectively defaulting as policymakers started restructuring plans as part of a bailout deal with the IMF.

Initial plan was an agreement to suspend service payments of its Eurobonds, commercial loans and most bilateral loans. Further, as an interim emergency measure, the government moved to engage its external creditors in what it thought was best in making …

• Project Management Institute’s recent Talent Gap report shows 2.3 million people will be needed each year to fill all project management-oriented (PMO) positions that are expected to open by 2030.
• To remain competitive, companies will need to hire problem solvers and relationship builders who can help drive change and deliver strategic value.
• During this decade, sub-Saharan Africa will witness a 40 percent growth in PMO employment opportunities.

African economies could be headed to a severe shortage of skilled project managers to implement critical infrastructure investments across the continent.

According to Project Management Institute’s most recent Talent Gap report, 2.3 million people will be needed each year to fill all project management-oriented (PMO) positions expected to open by 2030.

To remain competitive, companies will need to hire problem solvers and relationship builders who can help drive change and deliver strategic value.

During this decade, sub-Saharan Africa will witness a 40 percent …

• Competition for workers is rising significantly as populations age in rich and middle-income countries.
• In Sub-Saharan Africa, the Caribbean, and the Pacific, people with tertiary education are 30 times more likely to emigrate than those who are less educated.
• This migration can aggravate a shortage of skilled workers to provide essential services such as health care. And since governments cannot prevent people from leaving, they need to expand the training capacity for such skills, experts say.

Populations across the globe are aging at an unprecedented pace, turning many countries increasingly reliant on migration to realize their long-term growth potential, according to a new report from the World Bank.

The World Development Report 2023: Migrants, Refugees, and Societies, identifies this trend as a unique opportunity to make migration work better for economies and people.

Wealthy countries, as well as a growing number of middle-income countries—traditionally among the main sources of …

• Central Bank of Kenya (CBK) data shows remittance inflows in March hit $357.0 million compared to $309.2 million in February, an increase of 15.5 percent.
• Kenyans living and working abroad sent home $349.4 million in January, with the February figure being the lowest receipt since July last year. 
• The cumulative inflows for the 12 months to March 2023 totaled $4 billion compared to $3.9 billion in a similar period in 2022.

Kenyans in the diaspora sent home more money in the month of March compared to February and January, defying inflationary pressures being felt by households across the globe.

Central Bank of Kenya (CBK) data shows remittance inflows in March totaled $357.0 million compared to $309.2 million in February, an increase of 15.5 percent.

The inflows were $349.4 million in January, with the February figure being the lowest receipt since July last year.

The cumulative inflows for the 12 months …