Tag Archives: Economy
Economy: Latest News
Staff, 5:36 pm
Poor power supply is partly to blame for the Nigerian government’s inability to build a robust auto industry. That leaves vehicle imports as one of the only ways to meet local demand. Nigeria’s auto market is worth over $4 billion a year, but it does not translate into anything meaningful, a stakeholder said. Starting in 2015, stiff new tariffs were levied on new and used Nigerian vehicle imports. Imports fell more than 50 percent.
Kurt Davis Jr., 8:15 am AFKI Original
Mozambique had a tough 2016. The country is unable to pay its debt until gas revenues are available after 2021. Public debt is expected to be near 130 percent of GDP by the end of 2016. The IMF continues to help Mozambique negotiate with creditors – a bright spot considering the IMF suspended aid to the country in April after evidence of $2 billion in hidden loans came to light. This “hidden debt” by state-owned firms has destroyed creditors’ trust in Mozambique.
Dana Sanchez, 11:42 am
With 13.5M people, Guangzhou, China, is one of the most populous metropolitan areas on Earth, and it’s though to have Asia’s largest African population. Formerly known as Canton, the city was home at one point to up to 200,000 Africans, although that number has been disputed. One trend seems undisputed. The African population in Guangzhou is shrinking. Africans are leaving for greener pastures elsewhere in Asia.
Dana Sanchez, 3:56 pm
Donald Trump’s election could not have been better news for the economic and political ambitions of China. Suddenly, all roads lead to China from Africa, Europe, most of Asia and most of South America. African manufacturers could profit from China’s growing power, but that may have more to do with rising labor costs in China than it has to do with retreating U.S.-Africa trade. Manufacturing salaries are rising fast in China, which is starting to outsource production to other countries. China has become a victim of its own success.
Dana Sanchez, 11:00 pm
A year ago, the national airline of the United Arab Emirates was flying high on increased business activity between Africa and Asia. It had 27 African destinations and plans to link to almost every African market. Africa accounted for 10 percent of Emirates global passengers and revenue. Now Emirates is cutting back flights to Nigeria and more countries could have routes cut as economic challenges such as fuel scarcity and unfavorable exchange rates hurt profits.
Dana Sanchez, 6:28 pm
Ibrahim got rich on telecommunications, but he has invested millions in good governance. “Power corrupts absolutely,” Ibrahim said. He called for more international outrage over stolen elections. “People are learning how to steal elections because that looks less brutal than saying ‘I’m president for life,'” he said. “There is a limit to how long they can go on stealing elections. More and more of these elections are being subject to the harsh light of … social media.”
Staff, 12:01 am
The Russian media writes very little about Africa. African political leaders and corporate business directors have to depend on Western media reports about developments in Russia. Assurances by Russian officials that Africa is in the mainstream of Russia’s foreign policy have not been substantiated, and the development of Africa-Russia relations has so far been nothing to boast about. Only a few of Russia’s initiatives aimed at reviving economic cooperation have been made public.
Dana Sanchez, 8:30 pm
The number of African GMAT test takers has stagnated over the past five years. Scores for GMAT — which tests for admission to graduate university programs such as MBA — are lagging for African MBA applicants compared to the global average. The African applicant pool is small. African candidates often avoid the test for fear they cannot perform well, according to the U.S.-based owner of the test. They’re looking for alternatives and the market is providing. A new test pilot is skewed toward quantitative reasoning.
Staff, 12:02 am
Just as Nigeria prepares to issue its first Eurobond since 2013, S&P Global Ratings has downgraded the economy of Africa’s most populous country further into junk territory. Africa’s wealthiest man, Nigerian billionaire Aliko Dangote, told CNBC he knows what could help Nigeria move out of the recession — selling government assets to the private sector. “Nigeria’s economy has weakened more than we expected owing to a marked contraction in oil production, a restrictive foreign exchange policy and delayed fiscal stimulus,” S&P said Friday in an e-mailed statement after markets closed.
What People Are Saying About Nigeria Officially In Recession. Will Politics Send South Africa There Too?By Dana Sanchez, 3:34 pm
Correcting Nigeria’s economy won’t happen in the short term, says a longtime proponent of the “Africa rising” narrative. The South African currency could sink as low as 19 rand to the dollar this year. South Africa and Nigeria can rebound given the time and determination. Meanwhile, East African economies such as Tanzania and Ethiopia are growing and presenting alternatives for investors.
- Real Estate