Browsing: economy

IMF, International Monetary Fund

The New Tanzania Investment Act 2022 has now become law replacing the Tanzania Investment Act Cap 38 RE 2015 and its amendments. While there was an expectation for major changes, the reality is that the new Act is more or less the same as the previous minus a few differences outlined below:

1. The Act is in the Kiswahili language and there is no translation of the same in English.

2. Removal of the automatic immigration quota of 5 work and residence permits for expatriates workers. While previously an investor registered at the TIC would be allowed up to 5 immigration permits and this was typically used for investors’ strategic employees, this incentive is removed which means there is no guarantee for the investor to obtain immigration permits for its strategic employees who will be treated like every other applicant.

3. Local Investors ie Tanzania nationals or companies

Because of erratic economic policy, Zimbabwe continues to be the sick man of the Southern African Development Community (SADC) region.

The country perennially goes from one economic crisis to the next. Presently Zimbabwe is battling with resurgent inflation after managing to rein it in from the hyperinflationary levels reached in the years 2019 to 2020 and during the early months of 2021, peaking at over 837%.

Currently, Zimbabwe’s inflation stands at approximately 257%. Conventionally, the origins of inflation have been and always will be excessive money supply that outstrips the rate of growth in an economy resulting in too much money chasing too few goods and services. In the case of Zimbabwe, the inflation malaise was compounded by the fact that the economy is virtually stagnant, growing only marginally.

  • Zimbabwe’s economic policy has been erratic.
  • The government in Zimbabwe has recently adopted a scorched earth policy against inflation by tightening

Sub-Saharan Africa and its northern counterpart hold great economic promise.

Africa’s investment case remains a compelling proposition. The continent is home to some of the fastest growing economies in the world; think of Botswana and South Africa.

The continent is home to the youngest population in the world that is moving up the social strata. This means that the population of Africa will demand goods and services that foreign companies will happily supply. The continent, until recently, has attracted record amounts of foreign direct investment as capital made a beeline from developed economies whose returns were marginal at best and lethargic at worst. Returns on investments in Africa have been among some of the highest in the world.

  • Sub-Saharan Africa is set to enjoy slower economic and income growth, according to a report by the World Bank.
  • The Global Economic Prospects is an annual report produced and published by the

Fitch Global Solutions has downgraded its economic growth projections for Zimbabwe in 2022.

They had previously projected that the southern African country would grow by an estimated 3.7% but went on to reduce their prediction by 2.2% to 1.5%.

The ratings agency went on to assign a risk score of 33.3 attributable to the easing of COVID restrictions and firming international commodity prices, which augur well for the country since it is a major producer of minerals and natural resources. This downgrade by the global ratings agency comes at a time with the country’s currency is in free fall compared to the United States dollar. The exchange rate of the local currency to the greenback now trades anywhere around ZWL$534, having started the year trading at ZWL$ 108.66. The currency’s precipitous fall shows no sign of respite or slowing down.

Through its monthly Africa Monitor, Southern Africa Report, Fitch advises …

The Treasury has directed Cabinet Secretaries and CEOs of parastatals to draft Kenya’s 2023 budget based on policies implemented by President Uhuru Kenyatta’s government, despite uncertainty about when the next Head of State would take office after Raila Odinga filed a petition at the supreme court.

  • A hazy outlook has prompted the Treasury to begin the budget-making process under present rules.
  • According to Yatani, the formulation of the FY 2023/24 and medium-term budgets will concentrate on the targeted economic intervention.
  • A successful petition would invalidate the presidential election, necessitating a new vote 60 days after the ruling.

Directions by Treasury

The Treasury has directed Cabinet Secretaries and CEOs of parastatals to draft the 2023 budget for the fiscal year beginning July 2023 based on policies implemented by President Uhuru Kenyatta’s government, despite uncertainty about when the next Head of State would take office.

Treasury Cabinet Secretary Ukur Yatani has urged …

  • The United States dollar is now legal tender in Zimbabwe after the finance minister announced measures to stabilize the economy in June
  • The central bank of Zimbabwe introduced gold coins to shore up the value of the local currency
  • Inflation has been a nagging problem in Zimbabwe for the last 25 years

The pin finally dropped in Harare.

For years the monetary authorities of Zimbabwe had adamantly pursued a de-dollarization policy. The country's government reintroduced the local currency in 2019 after a decade of using a basket of multiple currencies led by the United States dollar.

Zimbabwe initially abandoned the use of its local currency, the Zimbabwe dollar, in 2009 after its value was destroyed by the highest levels of inflation ever on record and for a country in peacetime or not involved in armed conflict. The reintroduction of the Zimbabwe dollar this time around, dubbed the ZWL$, was brought…

Although roads are the most common means of transport in Africa, transporting at least 80% of cargo and 90% of passengers, huge infrastructure gaps remain across the continent.

  • Efficient road transport infrastructure is critical to Africa’s competitiveness.
  • Enhanced road infrastructure projects will promote intra-African commerce between African nations.
  • Africa's road infrastructure development plan should focus on the industry’s challenges and opportunities.

Africa’s development potential

Africa is the world’s second most populated continent, with approximately 1.2 billion inhabitants as of 2022. It is next to Asia, which has a population of about 4.5 billion people. As African countries' population grows, more individuals will work together to enhance their quality of life. Eventually, people will satisfy their country’s demands to support a thriving economy.

Read: Ethiopia embarks on $43 million road infrastructure project

African countries, like any other, have enormous growth potential. In reality, Africa is drawing more project funding and investment…

  • Business and government relations in Zimbabwe are at an all-time low, the general economy slows down, and the value of the local currency tumbles
  • The government has had an adversarial relationship with businesses because of conflicting interests in Zimbabwe
  • The business stands accused by the government in Zimbabwe of sabotaging efforts to stabilise the economy by indexing the price of goods and services to a parallel market

Relations between the government of Zimbabwe and the business community have been at an all-time low.

After the central bank summoned retailers and manufacturers for the Sunday Mail, a Zimbabwean government publication called a “no holds barred” meeting slated to take place on Tuesday, July 19. The agenda of the meeting offers no end in sight to the frosty relations between the two parties. The Sunday Mail carried this story with the headline, “RBZ summons retailers, manufacturers”.

Even though the publication called the …

  • The Government listed measures are expected to restore macroeconomic stability and deal with market indiscipline
  • All domestic foreign currency transfers attract the Intermediate Money Transfer Tax (IMTT) of 4 percent
  • Reviewed capital gains tax for shares held for a period not exceeding 270 days to 40 per cent

Flanked by Finance Minister Professor Mthuli Ncube and Reserve Bank of Zimbabwe governor John Mangudya, President Emmerson Mnangagwa, yesterday announced a raft of measures that he said are necessary to stabilize the economy.

He acknowledged the increase in month-on-month inflation from a monthly average of 4.5% to 15.5% in April 2022. He added that such an increase in domestic inflation was caused by both recent global shocks and domestic factors. In the televised speech, he listed domestic factors which include the pass-through effects of the recent exchange rate depreciation on the parallel market.

“If not contained, the continued depreciation of the …

  • Almost all sectors of Zimbabwe's economy need immediate investment
  • Zimbabwe's economy is largely driven by the mining, agriculture, and tourism sectors
  • Zimbabwe's main exports are minerals, agricultural produce, and soft commodities

Almost all sectors of Zimbabwe's economy need immediate investment.

Agro-processing and agro-forestry, manufacturing, tourism, and services like construction, infrastructure, transport, mining, and ICT present a host of investment opportunities. They are also supported through investor-friendly policies and incentives that aim to encourage investment, and also the Government's objective of making Zimbabwe a net exporter by 2030.

The World Bank said the Zimbabwean economy rebounded in 2021, driven by a recovery of agriculture and industry and relative stabilization of prices and exchange rates. An exceptionally good agriculture season, coupled with slowing inflation and higher remittances boosted domestic demand. Relaxed pandemic restrictions, good vaccination levels, and favourable terms of trade supported stronger industrial production and exports, with exports of…