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Africa's Inflation Among Region's Most Urgent Challenges
October 20, 2022--Tackling inflation while supporting growth and protecting the vulnerable warrants careful and vigilant monetary policy tightening
Sub-Saharan Africa faces one of the most challenging economic environments in years, marked by a slow recovery from the pandemic, rising food and energy prices, and high levels of public debt.
One of the most urgent issues confronting the region is the need to tackle decade-high levels of inflation-which are devastating incomes and food security-while also supporting growth.
While there are big differences between countries, the median of inflation rates in the region increased to almost 9 percent in August. And even though the rise has been less dramatic than in other parts of the world, and the drivers are different, inflation is nearly double pre-pandemic levels, risking social and political instability and worsening food insecurity.
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Source: imf.org
Carbon markets and climate funding-capitalising on synergies
October 18, 2022-- A new survey report highlight the growing appetite for blending the two instruments
As the momentum to curb global warming gathers pace, carbon markets have become recognised as fundamental to scaling up and accelerating the green transition: carbon pricing enables cost efficient capital allocation, drives systemic change, generates additional revenue streams over and above limited public funds, and offers countries the ability to meet their climate targets more flexibly.
Today, nearly 23 per cent of global emissions are covered through either Emission Trading Schemes or carbon taxes. With the emergence of carbon border adjustment mechanisms, such systems are now also getting a global reach. At the same time, over 5,000 companies worldwide have set net-zero targets, driving growth in the voluntary carbon market, which increased in value towards USD 2 billion in 2021.
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Source: ebrd.com
Nigeria Inflation Hits 17-Year High Of 20.8% Amid Soaring Food Prices
October 17, 2022--The Consumer Price Index (CPI) report released by the NBS showed that inflation rose by 20.8% in September, the highest rate since 2005, up from 20.52% recorded in the previous month.
Nigeria's inflation rate hit a 17-year high on the back of soaring food prices and supply chain disruption in September, a report by the National Bureau of Statistics (NBS) said on Monday.
The Consumer Price Index (CPI) report released by the NBS showed that inflation rose by 20.8% in September, the highest rate since 2005, up from 20.52% recorded in the previous month.
On a month-on-month basis, the index rose by 1.36% compared to the 1.77% increase recorded in the previous month, it said.
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Source: allafrica.com
Pandemic Shocks, Russia-Ukrainian Crisis Transforming African Trade
October 12, 2022--The pandemic effects and the Ukrainian crisis have led to rising commodity prices, surging inflation, and shifts in the global financial situation that have transformed African trade and production capabilities.
After overperforming in its post-pandemic recovery in 2021, Africa's economic growth will expectedly lag in 2022.
According to IMF, exports topped pre-pandemic levels to reach $150 billion in the first quarter of 2022.
Countries with highly diversified markets, like Kenya, have boosted domestic processing and manufacturing to establish themselves as intra-regional trade hubs.
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Source: allafrica.com
Absa Africa Financial Markets Index 2022
October 11, 2022--Index shows improving market infrastructure in majority of countries in the region
Now in its sixth year, the Absa Africa Financial Markets Index evaluates countries' financial development based on measures of market accessibility, openness and transparency.
Key findings include:
South Africa, Mauritius and Nigeria maintain their positions in the top three this year, as they continue to score highly on measures of market depth, transparency and enforceability of legal agreements.
Uganda rises two places to fourth, while Namibia and Kenya improve their ranking within the top 10. Scores for these three countries primarily rose due to progress on adopting ESG policies and frameworks.
Seventeen countries in the index now have sustainability-focused policies - five more than last year.
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Source: omfif.org
Risk Fear Affecting Investment in Africa
October 11, 2022--Why is trade and business investment in Africa considerably low despite the continent's potential for huge returns across almost every sector? At the risk of being wrong, the single reason that is deterring investment in Africa is a four-etter word, risk or rather, the lack of risk mitigation.
Risk creates fear for investment in Africa, fear for security, political stability, energy assurance, and policy change...the list of fears goes on.
Investment risk is at the forefront of Africa not reaching its investment potential despite having a wealth of resources.
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Source: allafrica.com
Africa, the Looted Continent
October 10, 2022--Africa. The birthplace of "Homo Sapiens." The land of plenty. The origin of farming. The richest region in terms of natural resources. And human capital. Home to over 1.3 billion humans, continues to be looted.
With 500 million plus people living in extreme poverty, Africa has also been transformed in a sort of grave for half of the world's victims of terror. The continent is also the land with the highest suicide rate on Earth. Why?
Gold, diamonds, lithium...
The illegal exploitation of precious metals and minerals such as gold, silver and diamonds, are fuelling the extremists with significant sources of income, and benefiting the groups that control extraction, and trafficking routes -The vast Sahel region in particular has become "home to some of the most active and deadly terrorist groups", says the Head of the UN Office on Drugs and Crime (UNODC)
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Source: allafrica.com
World Bank-African Governments Urgently Need to Restore Macro-Economic Stability and Protect the Poor in a Context of Slow Growth, High Inflation
October 4, 2022--Global headwinds are slowing Africa's economic growth as countries continue to contend with rising inflation, hindering progress on poverty reduction.
The risk of stagflation comes at a time when high interest rates and debt are forcing African governments to make difficult choices as they try to protect people's jobs, purchasing power and development gains.
According to the World Bank's latest Africa's Pulse, a biannual analysis of the near-term regional macroeconomic outlook, economic growth in Sub-Saharan Africa (SSA) is set to decelerate from 4.1% in 2021 to 3.3% in 2022, a downward revision of 0.3 percentage points since April's Pulse forecast, mainly as a result of a slowdown in global growth, including flagging demand from China for commodities produced in Africa.
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Source: worldbank.org
Zimbabwe: List of Exchange Traded Funds On the Zimbabwe Stock Exchange
September 27, 2022--In Zimbabwe, investing in Exchange Traded Funds (ETFs) is witnessing traction, and various ETFs of different types are emerging. It is easy to invest in an ETF but before investing, ensure that you choose the one that suits your financial plan the most.
Investing in ETFs or exchange-traded funds is equivalent to investing in all constituents that are part of an index directly.
According to Forbes, the yields or returns generated by ETFs replicate the benchmark index. It gives investors an opportunity to benefit from diversity, flexibility and scope for growth that comes from ETFs being traded on stock exchanges.
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Source: allafrica.com/
African Domestic Bond Fund lists on Botswana Stock Exchange
September 21, 2022--The African Domestic Bond Fund (ADBF), an exchange-traded fund, has been listed in the local Pula currency on the Botswana Stock Exchange (BSE). The listing, on 15 September 2022, follows the Fund's primary US dollar listing on the Mauritius Stock Exchange in 2018.
The Pula-denominated listing will offer investors an innovative tool to gain exposure to African local currency fixed income.
ADBF is the first multinational fixed income exchange-traded fund in Africa. It was launched by the African Development Bank as part of initiatives to strengthen African economies by reducing their dependency on foreign-currency-denominated debt, increasing the range of available financing options, and acting as a catalyst for regional market integration.
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Source: afdb.org
