Browsing: Economic recovery

Agriculture driving Côte d’Ivoire’s economy
  • Macroeconomic reforms have received top priority during President Ouattara’s government, partly because he applies his experience as a former IMF official in policy decisions.
  • Due to the robust pre-crisis foundations, significant economic diversity, and early easing of fiscal policy, Côte d’Ivoire displayed remarkable resilience during the pandemic.
  • Agriculture supports more than half of Côte d’Ivoire’s labour, providing 21.4 per cent of the nation’s GDP and employing 40 per cent of the labour force.

Côte d’Ivoire has enjoyed one of the highest continuous economic growth rates in Sub-Saharan Africa during the last decade. Real GDP growth has averaged 8.2 per cent.

Not with standing the challenging global economic situation, Côte d’Ivoire’s economy has been one of the few Sub-Saharan African countries to retain growth in 2020. Despite the shocks of the worldwide pandemic, the Ivorian economy steadily recovered in 2021 expanding at a rate of 7 per cent, much higher than …

Food security concerns and runaway inflation have compounded economic woes and threatened to slow down Africa’s economic recovery and growth.

  • Africa seeks an entirely new economic growth path, capitalizing on the potential of its people and resources.
  • The AfCFTA is the world’s most extensive free trade area in terms of size and number of nations, with a combined GDP of around $3.4 trillion.
  • The private sector is essential to making regional economic integration work for Africa.

Africa’s economic outlook

Africa is a diverse continent with natural and human resources capable of creating inclusive growth and eradicating poverty. The continent now has the world’s most extensive free trade area, with a market of 1.2 billion people. Africa seeks an entirely new economic growth path, capitalizing on the potential of its people and resources.

Economic growth in Sub-Saharan Africa (SSA) was estimated at 4 per cent in 2021. However, growth in the …

The war’s high costs burdened Ethiopia's economy, particularly following the pandemic’s slowdown hitting global economies in the last two years.

  • Ethiopia’s way out of the current economic crisis seems to hinge on the security and political stability across the country.
  • Ethiopia’s security and political developments undoubtedly caused a fast-paced economic deterioration that slowed economic growth.
  • The hope for stability in Ethiopia is key to ensuring the Horn of Africa’s peace and security.

Security and stability effect on Ethiopia's economy

The Tigray conflict threatened the sustainability of Ethiopia’s economy with concerns over the government’s ability to pay off mounting debt. With the economy taking a hit, the security crisis massively impacted food security, human development, employment, inflation rates, education and health and complicated an already worsening refugee crisis.

Ethiopia’s way out of the current economic crisis seems to hinge on the security and political stability across the country, a condition for…

The sustainability of Kenya's debt remains a significant concern not only for authorities but also for the populace, financial institutions, and other key stakeholders.

  • Kenya’s economy has recovered significantly under challenging circumstances amid a global economic downturn and is anticipated to grow by 5.7 per cent in 2022.
  • Despite significant setbacks, Kenya’s structural reform strategy, which focuses on enhancing governance, has progressed.
  • According to the Central Bank of Kenya, 57 cents of every dollar spent by taxpayers goes towards the country’s growing debt.

Economic recovery and growth 

Kenya’s economy has recovered significantly amid a global economic downturn and is anticipated to grow by 5.7 per cent in 2022. In June, inflation surpassed the Central Bank of Kenya’s (CBK) statutory target range of 2.5 to 7.5 per cent. It is predicted to peak this year before falling back into the band in early 2023.

In the short term, downside risks prevail.…

Addressing the rising inflation in Africa while supporting economic growth and cushioning the vulnerable against economic shocks requires an urgent but careful approach.

  • Multiple shocks have gripped a world economy already ravaged by the pandemic.
  • Sub-Saharan Africa has been facing one of the most difficult economic circumstances recently, with the pandemic’s delayed recovery, soaring energy and food prices, and increased public debt levels.
  • Central banks have already started raising interest rates in response to rising inflation in Africa, capital outflows, and currency devaluation caused by tighter monetary policy in industrialized countries.

A gloomy and an uncertain global economic outlook

Gloomy signs of progress in 2022 highlight a tentative global economic recovery in 2021 as risks started to manifest. Global production fell in the second quarter due to slowdowns in Russia and China. The United States (US) consumer spending also fell short of expectations.

Multiple shocks have gripped a world economy …

President Hichilema’s plan for kickstarting the economic recovery in Zambia included taming inflation, job creation for the youth, restoring the confidence of international investors and addressing external debt.

  • Hakainde Hichilema has guided Zambia towards economic recovery and stability since taking office in August last year.
  • COVID-19 pandemic, climate change, high debt portfolio and other headwinds decimated Zambia’s economy in 2021 to less than 3% of GDP.
  • The proven stability approach sets an example for other African nations looking to bounce back from a raft of economic and inflationary pressures.

The dawn of hope for Zambia

Hakainde Hichilema is one of the most successful businesspersons in Zambia. During the presidential election in 2021, Hichilema contested on a United Party of National Development, in which he is the party leader.

The six-time presidential candidate was, in August 2021, declared the winner of the presidential poll. His victory ended incumbent President Edgar Lungu’s

  • The banking sector in Kenya was stable and resilient in the third quarter of 2021
  • The Quarterly Economic Review for the period ending 30th September 2021 indicates that the sector’s total assets increased by 2.4% to KSh 5.8 trillion in September 2021, from KSh 5.7 trillion in June 2021
  • Loans and advances accounted for 54.8% of total assets in the third quarter of 2021, a 0.1% point increase from 54.7% of total assets in the second quarter

Kenya’s banking sector remained stable in the third quarter of 2021, said freshly released data by the Central Bank of Kenya (CBK).

In its Quarterly Economic Review for the period ending 30th September 2021, CBK indicates that the sector’s total assets increased by 2.4% to KSh 5.8 trillion (US$ 51 billion) in September 2021, from KSh 5.7 trillion (US$ 50 billion) in June 2021.

CBK said the increase was mainly because of a …

Kenya’s agriculture sector grew by 5.1 percent in 2020, thereby preventing a contraction of the economy, amid the coronavirus pandemic, which ravaged a majority of other sectors.

Data from Deloitte’s East Africa Economies Report 2021 indicates that the sector remains fundamentally important to the Kenyan economy, contributing about 33 percent of the GDP and 56 percent of the employment, both formally and informally.

The report paints mixed performance in the sector in 2020, for instance, as of May 2020, Kenya’s Agricultural sector’s outlook was grim due to the locust swarm infestation affecting domestic agricultural production.

However, as of Q4 2020, the sector reflected a revamped outlook owing to favourable rains and success in beating back a second wave of desert locusts.

“As such, the sector is estimated to have posted a 5.1 percent growth in 2020, emerging as the silver lining sector,” the report says.

Exports

The report also shows …

The Kenya Association of Manufacturers urged the government of Kenya to urgently address the way to economic recovery following the immense effects of the pandemic.

This was said during the launch of the Kenya Association of Manufacturers (KAM) 2021 Manufacturing Priority Agenda (MPA), themed “From surviving COVID-19 to thriving: Manufacturing sector rebound for the sustained job and investment growth”.

Speaking during the Agenda launch, Mr Mucai Kunyiha, the KAM chair said that the economic recovery highly depends on the goodwill and full commitment from the government.

He explained that “Efforts to enhance our productivity are hampered by the increasing cost of doing business and low competitiveness. Some of the issues that contribute to this are regulatory overreach high cost of energy, transport, and logistics costs. To resolve these headwinds, it is paramount that the government and its agencies strongly commit and demonstrate goodwill to securing the future of our country’s …

Uganda’s Central Bank noted that easing of lockdown put in place as a measure to prevent the spread of covid-19 has led to economic growth recovery.

The Bank of Uganda in its latest monetary policy statements said that economic growth recovery has been supported by the easing of lockdown, a feeble improvement in both foreign and domestic demand as well as the stability of the exchange rate.

The government of Uganda started easing restrictions on some parts of the economy which had been affected by the pandemic in may.

Uganda’s Central Bank forecasts that the 2020/2021 financial year will see some growth of between 2.0-3.0 per cent which could increase to up to 6.0 per cent in 2021/22. The growth estimated before the pandemic which was of more than 6 per cent is forecast to be attained after 2022.

The 9 pm to 6 am curfew still remains in place …