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In September last year, the government started making quarterly token payments of $100,000 to each of the 16 Paris Club creditors as it sought ways to extinguish the mounting debt.
As of the end of May, Zimbabwe had made $8 million in token payments to multilateral banks and $4.8 million to the Paris Club creditors.
The article added that Zimbabwe is already defaulting on active loans from China, which is affecting the disbursement of funds for ongoing projects, the debt management office said in the report.…
Infrastructure development continues to be a vital driver of foreign direct investment (FDI) since logistics are so necessary for global business development, mainly e-commerce, which is now a significant generator of income and jobs at home and abroad.…
The widespread adoption of information and communication technology (ICT) by manufacturing companies the world-over is driving competition and permanently disrupting the playing fields.
According to an article by Cision PRNewswire published on May 11, 2022, the competition for a strong manufacturing industry is a global one, and initiatives to promote and advance manufacturing from other governments include Germany's "Industrie 4.0", France's "Industrie du Futur," and China's "Made in China 2025".
Japan has planned Society 5.0 (Industry 4.0), targeting its economic and social challenges, such as an aging population, labor shortages, and weak growth through advanced technologies. Germany Industrie 4.0 Initiative aims to create an industry infrastructure fit for sustainable future manufacturing in the country.
Recently, African countries have made promising progress towards industrialization, exhibited in the continent’s strategic framework for leveraging the pan-African drive for achieving inclusive and sustainable development, Agenda 2063.
However, the continent has faced unprecedented disruption over…
The movement of exchange rates on the parallel market has been caused by the government itself. Firstly, the government introduced a currency that economic agents have no confidence in because it did not have the macroeconomic fundamentals to give it credence. There was no parallel market for foreign currency during the years that the country made use of a basket of currencies.
The parallel market only emerged when the government introduced a surrogate currency called the bond note which was said to be at par with the United States dollar. No sooner than the surrogate currency had been introduced that the parallel market emerged, and United States dollars started trading at a premium.
Secondly, the government reportedly purchases foreign exchange on the parallel market. Through the central bank, the government issues new currency and then purchases foreign currency on the parallel market and drives up the exchange rate. It has …
The European Union (EU) and Nigeria have enjoyed robust trade and bilateral relations since the formulation of this lucrative partnership, and remains its most important trading partner for oil and non-oil exports. In cognizance of Nigeria’s strategic importance as Africa’s most populous nation, and one of the largest economies; the EU’s cooperation with the country aims to enhance growth and stability to achieve social equity, hence their partnership has been rooted in shared values and interests since inception. In addition, Nigeria is also a key beneficiary of the EU’s Foreign Direct Investment (FDI).
To boot, the EU has recently renewed its commitment, pledging to continue to pursue with increased vigour, its bilateral engagement and friendship with Nigeria I n order to deliver better and to make the partnership more fruitful. This comes after the trade volume between the European Union and Nigeria, increased by 25.8 per cent to peak at…
Africa's role in the world economy derives from its economic importance to the rest of the world in international trade and as a destination for international investment. Africa has recently become home to the largest free trade area in the world, both by area and by the number of countries.
As economies have been hard hit by the Covid-19 pandemic, the Africa Continental Free Trade Area (AfCFTA) holds economic promise for the continent. The AfCFTA comprises 55 countries with a population of 1.3 billion and combined GDP of about $3.4 trillion. Business leaders and observers regard economic and regional integration as essential for accelerating Africa's manufacturing, e-commerce, and digitization to reduce an over-reliance on imports, especially from China.
However, there is still much more to do as major components of the agreement still must be negotiated, between many countries and regional economic communities. Moreover, according to the IMF, removing non-tariff…
Russia’s invasion of Ukraine could impact relations between the United States (USA) and Africa as global economic and military powers compete for influence on the continent.
Pulling Africa into the West’s war with Russia
But, many African countries are staying neutral on the conflict which is not sitting well with the West.
Indeed, on March 18, 2022, the US ambassador to the UN, Linda Thomas-Greenfield, said that African countries cannot remain neutral in the Ukraine conflict.
She said that when the UN General Assembly voted to condemn Russia's invasion of Ukraine in early March, 17 African countries abstained while another eight did not vote at all.
Thomas-Greenfield was quoted by the BBC saying that there is no neutral ground and that the Russia-Ukraine was not just about the Cold War between the West and Russia.
To bait African nations, Thomas-Greenfield said the United States was working with other countries…
As a result of these and other reasons, the region’s economy is anticipated to recover faster than expected, according to the analysis.
Free trade is projected to play a critical role in Africa’s rapid integration into regional and global industrial and value chains during the next 12 months, according to the report
With AfCFTA fully implemented, the World Bank projects that Africa’s gross production will rise by about US$212 billion above the baseline by 2035, with manufacturing exports increasing by 62 per cent and internal trade in manufactured goods increasing by 110 per cent.…
Long gone are the days you hear of Africa and envision mud huts and malnourished babies. Well, maybe long-gone is an over-statement because these unfathomable pasts are buried in very shallow time graves and ever threatening to re-emerge and haunt the continent again.
It is for this very reason that Africa, and its trade and development partners must harness the continent’s technology potential and put innovation at the forefront of every nation’s development agenda.
Why? For Africa, it is how the continent will keep those shallow graves buried and build a bright, healthy future and for the world—well, Africa is the market of the future. Just to bring this market into perspective – as of January 2021, in the heat of the global pandemic, African tech business enterprises have raised US$940 million, making the continent the strongest market for technology worldwide.
Impressive, right? While many on the continent may still…
Kenya has announced plans to revive small industries across the country, in a bid to spur value addition and market access for targeted products through projects led by the youth.
The Trade, Industrialization and Enterprise Development Principal Secretary Kirimi Kaberia said the ministry has completed mapping out villages and their unique products countrywide, according to Business Daily.
According to the PS, the Ministry is looking to attract more youth into manufacturing through cottage industries.
Kaberia said the government’s plan is to have functional industries in the next 12 months through transfer of resources in the rural areas.
“We want to have an environment where local people consume what they produce,” he said.
The plan, dubbed ‘one village, one product’, is part of Kenya’s Vision 2030.
Why Kenya’s manufacturing is uncompetitive
It is also part of the government’s plan of growing the contribution of the countries manufacturing to GDP from 11 …