Browsing: African economy

African industry workers
  • African governments saw a series decline in public revenues during the pandemic
  • Unemployment has surged in Nigeria and South Africa due to the pandemic
  • Some economies have emerged strong while others not so much

The African economy is doing its best to recover strongly from the shackles of the COVID-19 pandemic, which shaved off a substantial amount of growth from the continent’s $2.7 trillion GDP.  Economic recovery in Africa is tough but essential.

While Africa is working its way out of recession and extreme poverty, the region is facing multiple setbacks, such as civil conflicts and the recent Russian invasion of Ukraine, which has caused severe food security in several countries.

The pandemic forced most of the countries on the continent to significantly impose lockdowns that crippled financial operations—businesses, mobility, movement within and across national borders, and public gatherings (Relief Web). 

According to Relief Web a humanitarian information services platform,

  • African economy has sustained significant impacts due to the pandemic
  • Several sectors such as tourism and trade have been impacted significantly
  • Despite the virus, Africa has demonstrated important issues towards handling pandemics

 

One of the most vibrant economies in the world, sub-Saharan Africa is slated to bounce back from the shocks of COVID-19 which left a number of economies shaken to the core and hundreds of lives lost.  

Despite the pandemic limiting several economic functions such as international travel—which marred tourism operations in East Africa, the region is expected to score growth of 3.3 per cent in 2021, according to a recent report by the World Bank. 

The October edition of Africa’s Pulse report explicitly noted that the resurgence of the economy is promoted by elevated commodity prices, a relaxation of stringent pandemic measures and recovery in global trade.  

Kenya, Tanzania, Rwanda and Uganda, are now working towards building

The private sector in the African continent is set to receive US480 billion in investments over the next five years.

The investments will be made by a consortium of organizations under the G7 Development Finance Institutions (G7 DFI) which includes the European Investment Bank and the private sector arm of the African Development to support sustainable economic recovery and growth in Africa.

The proposed investments come at a time when the Covid-19 pandemic has caused a severe global economic and health crisis, including in the African continent.

The IMF estimates that sub-Saharan Africa needs additional financing of around $425 billion between now and 2025 to help strengthen the pandemic response spending and reduce poverty in the region.

This marks the first time the G7 DFIs have come together to make a collective partnership commitment to the African continent.

The G7 DFI group consists of CDC, Proparco (France), JICA and JBIC …

Africa making huge moves to advance rapidly within the realms of social impact entrepreneurship and innovation.

From smart environmental solution based in Dar es Salaam Tanzania to e-learning innovations in Cape Town, South Africa are filled with rather interesting operations that will levitate the region in the coming decades.

The continent has rather made some great strides over the past years, having platforms such as The Next African Start-Ups program launched in 2018, connecting entrepreneurs with potential investors, financial institutions and policymakers—catering all necessary items for their growth and introduction of fresh services and technologies that will improve lives of people across the region.

Despite the year 2020 being a record market for investment into the African tech startup ecosystem. Whereby more money was raised from a large pool of investors compared to other years before, 2021 came with a dark cloud.

According to information from Bloomberg News which cited …

Only 40 per cent of Africa’s trade is bank-intermediated, representing a far lower share than the global average of 80 per cent.

With this, the trade finance gap remains unacceptably high at US$81 billion as of 2019, according to the African Development Bank and the African Export-Import Bank in a joint report.

Over the nine years leading up to 2019, the average size of the trade finance gap in Africa was estimated to be US$91 billion. It decreased slowly but steadily from US$120 billion in 2011 to US$70 billion as at end-2016. But the downward trend has since reversed.

Read: Africa’s energy gap provide investment opportunities

“The gap in 2019 was estimated to be US$81.80 billion. Given that the global trade finance gap was estimated to be US$1.5 trillion in 2018, the average unmet demand in Africa represents 5.5 per cent of the global trade finance gap. To put this …