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Africa's Development Dynamics report shows digitalisation of economic sectors will kick-start a new growth cycle after COVID-19
January 19, 2021--The response to the COVID-19 crisis builds momentum for Africa's digital transformation to overcome the pandemic and create more productive jobs, according to the 2021 edition of Africa's Development Dynamics (AfDD) launched today.
The COVID-19 pandemic is the hardest shock to African economies in 25 years. Gross domestic product (GDP) has decreased in 41 countries in 2020, compared to 11 countries in 2009 when the Global Financial Crisis hit.
Yet Africa's governments are facing today's crisis with lower financial resources than they did then: over 2010-18, domestic revenues per capita decreased by 18%, and external financial flows per capita by 5%. Tax-to-GDP ratios had already been stagnating at 16.5% between 2014 and 2018 in 30 African countries, despite important tax reforms. Public revenues should contract even further, by about 10% in at least 22 African countries between 2019 and 2020; total national savings could drop by 18%, remittances by 25% and foreign direct investment by 40%.
In that context, Africa's booming digital sector offers an opportunity for governments to help kick-start a new growth cycle in the aftermath of the COVID-19 crisis, according to the report. By encouraging the spreading of digital technologies, data and interconnection to all sectors, starting with healthcare, African countries can accelerate economic transformation and the creation of productive jobs, in line with the Aspirations of the African Union Agenda 2063.
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Source: OECD
Nigerian Stocks Rise for Fifth Straight Day On Bellwether Gains
January 15, 2021--Market breadth was significantly positive as 49 equities emerged compared to seven losers.
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Source: allafrica.com
Africa's Free Trade Area Opens for Business
January 14, 2021African countries opened their markets on 1st January under the continental free trade agreement and duty-free trading of goods and services across borders is now underway despite the COVID-19 pandemic and other teething problems.
The new market, created under the African Continental Free Trade Area (AfCFTA) agreement is estimated to be as large as 1.3 billion people across Africa, with a combined gross domestic product (GDP) of $3.4 trillion. This has a potential of lifting up to 30 million Africans out of extreme poverty, according to the World Bank.
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Source: allafrica.com
Africa: Top Five Risks for African Businesses in 2021
January 12, 2021--In 2021, businesses will face a globally fragmented recovery from COVID-19; now is the time embrace risk and focus on the rebound.
The COVID-19 pandemic, emerging digital threats, climate change and the US China relationship are among the top five risks for businesses in 2021, published Monday by Control Risks, a specialist global risk consultancy.
Underpinning these risks, the danger of missing the rebound in a year of multi-speed recovery is a top risk for business in the coming year.
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Source: allafrica.com
Africa: New Pan-African Trade Deal Could Be the "Anti-Brexit" and Unleash Continent's United Economic Potential, Report Finds
December 21, 2020-The African Continental Free Trade Area (AfCFTA), due to launch in January 2021, is likely to be a watershed for African regional and international agri-food trade, a new report by the Malabo Montpellier Panel has found.
The AfCFTA will be one of the largest free trade areas in the world since the establishment of the World Trade Organization (WTO), covering a market of more than 1.2 billion people and up to US$3 trillion in combined GDP. The agreement also creates the opportunity to increase intra-African trade by more than 50 per cent, adding an estimated US$76 billion in income to the rest of the world.
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Source: allafrica.com
Nigeria's Inflation Climbs Further, Hits 14.89% in November
December 15, 2020--The composite food index rose sharply by 18.30 per cent in November compared to 17.38 per cent in October.
After attaining the highest level in 30 months in October, Nigeria's headline inflation climbed further to 14.89 per cent, the latest figures by the National Bureau of Statistics (NBS) show.
This is the 14th straight month the rate has quickened. This may be attributed to the rise in food prices initially caused by border closures, dollar restrictions and the recent banditry attacks that are preventing farmers from producing food.
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Source: allafrica.com
IMF Staff Completes 2020 Article IV Mission to Nigeria
December 11, 2020-Real GDP is contracting, inflation is increasing, and external vulnerabilities remain large.
Major policy adjustments embracing broad market reforms are needed.
Exchange rate and monetary policy reforms, increased revenue mobilization and structural reforms will help to unlock Nigeria's growth potential.
An International Monetary Fund (IMF) staff team led by Jesmin Rahman conducted a virtual mission from October 30 to November 17, 2020 in the context of the 2020 Article IV Consultation with Nigeria.
At the conclusion of the mission, Ms. Rahman issued the following statement:
"The COVID-19 global pandemic is exacting a heavy toll on the Nigerian economy, which was already experiencing falling per capita income and double-digit inflation, with limited buffers and structural bottlenecks. Low oil prices and sharp capital outflows have significantly increased balance of payments (BOP) pressures and, together with the pandemic-related lockdown, have led to a large output contraction and increased unemployment. Supply shortages have pushed up headline inflation to a 30-month high."
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Source: IMF
Nigeria Development Update (NDU)-Rising to the Challenge: Nigeria's COVID Response
December 10, 2010--In 2020, Nigeria's economy is expected to experience its deepest recession since the 1980s due to the COVID-19-related disruptions, notably lower oil prices and remittances, enhanced risk aversion in global capital markets, and mobility restrictions.
In our baseline scenario-which assumes further macroeconomic reforms and a gradual recovery in oil prices-Nigeria's gross domestic product (GDP) is projected to contract by about 4 percent in 2020, growing modestly by 1.1 percent in 2021, and then recovering gradually towards the estimated population growth rate of 2.6 percent. With the rate of economic growth remaining below the population growth rate, per-capita incomes would continue declining and better full-time jobs will be much harder to find.
view the Nigeria Development Update (NDU)-Rising to the Challenge: Nigeria's COVID Response
Source: World Bank
South Africa: GDP Recovers to 66.1 Percent Growth
December 8, 2020--The South African economy began its journey to recovery during the third quarter of 2020- this after the national lockdown aimed at curbing the spread of COVID-19 had sent it into a tailspin.
During this period, the country's economy rose by an annualised rate of 66.1%, Statistics South Africa (StatsSA) revealed on Tuesday.
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Source: allafrica.com
Ethiopia: How Digital Ethiopia 2025 National Strategy Reinforces Economic Growth
December 1, 2020--Digital Ethiopia 2025 national strategy set to transform the country's national economy through four major pathway sectors including agriculture, manufacturing, IT-enabled services and the tourism.
The digitization of these sectors is expected to boost the economic transformation of the country in the coming five years to drive its status to the middle-income countries of the world.
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Source: allafrica.com
