Global Risk Insights
Global Risk Insights, 9:15 am
For some, the 1977 dissolution of the East African Community (EAC) finally marked the forlorn end of Africa’s decades-long flirtation with Pan-Africanism. For others, it represented the triumph of sovereignty and nationalism over unrealistic infatuations with asymmetric economic marriages. The last fifteen years of the organization’s newest iteration have fallen somewhere in between the two
Global Risk Insights, 2:57 am
The growth of Islamic finance in recent years has seen a rapid increase in the value of ‘Islamic Economy’ – with the global shari’a-approved financial sector projected to be worth $3 trillion by 2018. While Middle Eastern and Asian countries are leading this trend, one region—Sub-Saharan Africa—remains under-serviced. Indeed, with over 250 million Muslims, the region is home to a quarter of world’s Muslim population, yet commands a disproportionately small fraction of Islamic financial activity.
Global Risk Insights, 9:05 am
For a country still coming to grips with a contested poll in Zanzibar and the withdrawal of hundreds of millions of dollars of development assistance funds from the US and possibly other Western countries, Tanzania has a surprisingly solid fiscal outlook. The nation’s GDP has increased by about 7% for the last several years, and its current account deficit is narrowing. It continues to attract more foreign direct investment (FDI) than most of its East African neighbors, with FDI rising 14.5% in 2015 and 61.7% in the last six months alone.
Global Risk Insights, 7:32 am
Fatal clashes in South Sudan raise the possibility of civil war and the certainty of on-going instability, which may have measurable implications for East African businesses and economies. During the course of a meeting between President Salva Kiir and Vice President/former rebel leader Riek Machar, fighting ensued between their respective military forces, the SPLM and SPLM-IO.
Global Risk Insights, 6:04 am
The scale of the corruption exposed in Cashgate deeply damaged investor confidence, fueling fears that the already impoverished Southern African country – with a per capita income of just $250 and a youth unemployment rate over 70% – would struggle to attract much-needed investment to drive economic growth and create jobs. Since assuming the presidency in 2014 after an election win against Joyce Banda, Peter Mutharika promised to root out corruption and restore public, investor and donor confidence.
Global Risk Insights, 6:37 am
President John Magufuli may be reducing corruption and security risks but has also influenced a trend toward increased risk of expropriation, creating uncertainty for foreign investors. Tanzania’s government has commenced a national project which will see undeveloped land larger than 20 hectares seized from investors and given to farmers. In May 2016 alone, the government expropriated over 1,800 hectares of land
Global Risk Insights, 5:56 am
Protests on May 23 resulted in three deaths, 19 arrests and many injured. Violence swept though Kenya for the fourth Monday in a row, with incidents recorded in Nairobi, Mombasa, Nakuru, Meru, Kisii, Kakamega, Migori, Siaya, Machakos and Kisumu. The May 16 protests drew international media attention due to shocking police brutality and the seemingly chaotic looting that accompanied it.
Global Risk Insights, 7:06 am
Last week the US and Senegal signed a defence cooperation deal. The deal is an upgrade of an existing agreement dating from 2001, and only entails increased access for US military deployment in case of humanitarian crises, such as the Ebola crisis, and to contribute to the battle against terrorist groups in the region. However, it can also be interpreted as a new direction and strategy of the US Africa Command, AFRICOM.
Global Risk Insights, 7:38 am
With a fortune estimated by Forbes to be $17.1 billion, ranking him the 51st in the world, Dangote could afford to play it safe. Instead the billionaire continues to take risks, betting on Africa’s future. Born in 1957 into a Muslim family of successful merchants that traded in groundnuts, the leading export commodity for Nigeria before the prominence of oil, Dangote seemed pre-destined for a career in commodities. Starting his own trading business after acquiring a business degree from Egypt’s Al-Ahzar University in 1977
Global Risk Insights, 4:59 am
Former rebel leader Riek Machar has returned to South Sudan and formed a transitional government with President Salva Kiir but the risk of instability and renewed conflict remains high. On Tuesday April 26, former rebel leader and now Vice President Riek Machar landed in Juba, South Sudan. The return of Machar sparked celebrations, similar to the optimism which swept the country in July 2011