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IMF-South Africa: Staff Concluding Statement of the 2023 Article IV Mission
March 22, 2023--South Africa's economic and social challenges are mounting, risking stagnation amid an unprecedented energy crisis, increasingly binding infrastructure and logistics bottlenecks, a less favorable external environment, and climate shocks.
A recovery in the services sector supported job creation in 2022; however, employment remains below pre-pandemic levels and unemployment close to record highs, on the back of already high poverty and inequality.
In addition, the economy remains exposed to external shocks and capital flow volatility, in the context of tighter global financial conditions, and volatile commodity prices related to Russia's war in Ukraine.
The elevated public debt significantly limits the fiscal space available to respond to economic and climate shocks and meet social and developmental needs. Long-standing rigidities in product and labor markets, and governance and corruption vulnerabilities also weigh on growth and employment prospects, threatening social cohesion.
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Source: imf.org
Africa's Digital Economy Will Rise to $712bn By 2050-AfDB
March 15, 2023--The president, African Development Bank Group (AfDB), Dr Akinwumi A. Adesina, has said the size of Africa's digital economy will rise from $115 billion today to $712 billion by 2050.
He said this Tuesday at the official launch of the Investment in Digital and Creative Enterprises (I-DICE) by Vice President Yemi Osinbajo at the State House Conference Centre, Abuja.
I-DICE, which is an initiative of the Federal Government of Nigeria to promote entrepreneurship and innovation in the digital technology and creative industries to create jobs, especially for young people, is supported by the AfDB, Agence Francaise de Developpement (AFD) and Islamic Development Bank with the Bank of Industry designated as executing agency.
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Source: allafrica.com
South African economy slumps in Q4 as power crisis escalates
March 7, 2023--Q4 GDP down 1.3% q/q seasonally adjusted
Analysts had predicted 0.4% contraction
Seven out of 10 industries shrink
Rand slips after data released
South Africa's economy contracted more than expected in the last quarter of 2022, as an escalation in rolling power cuts contributed to most sectors from agriculture to mining shrinking.
The data means South Africa could be heading for recession and highlights the damage that the worst electricity outages on record are doing to Africa’s most industrialised economy.
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Source: reuters.com
Africa's Agribusiness Sector Should Drive the Continent's Economic Development-Five Reasons Why
February 17, 2023--Africa's agriculture sector accounts for about 35% of the continent's gross domestic product, and provides the livelihood of more than 50% of the continent's population. These shares are more than double those of the world average and much higher than those of any other emerging region.
Dependence on agriculture has declined in other emerging regions.
For example in Southeast Asia, agriculture's share of GDP dropped from 30-35% in 1970 to 10-15% in 2019. In Africa it has remained unchanged for decades, according to World Bank data. At the same time, Africa's agriculture sector is the world's least developed, with the lowest levels of labour and land productivity. Value added per worker in agriculture is about a quarter of the world's average and less than a fifth of China's.
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Source: allafrica.com
IMF Staff Country Report-Nigeria: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Nigeria
February 16, 2023--Summary:
Economic recovery continued to broaden in 2022. Higher oil prices are yet to deliver tangible benefits amid contraction of oil production and costly fuel subsidies. Elevated inflation and lingering external sector pressures, if left unaddressed, may exacerbate macroeconomic instability.
This could impact growth, food security and ultimately social cohesion given extreme inequality and high poverty. The upcoming elections provide an opportunity for the new administration to advance structural reforms and offer a more prosperous future.
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Source: imf.org
IMF Executive Board Concludes 2022 Article IV Consultation with Nigeria
February 6, 2023--Nigeria's economy has recouped the output losses sustained during the COVID-19 pandemic supported by favorable oil prices and buoyant consumption activities. Gross domestic product (GDP) adjusted for inflation has already reached its pre-crisis level and the third quarter of 2022 marked the eighth consecutive quarter of positive growth-despite continued challenges in the oil sector.
Growth is estimated at 3 percent for 2022.
Headline inflation declined in December 2022 for the first time in 11 months, but at 21.3 percent remains high-driven by elevated international food prices, large parallel market premiums and monetary policy accommodation. While the Central Bank of Nigeria raised the Monetary Policy rate (MPR) by a cumulative 500 basis points in 2022 and another 100 bps in January 2023, inflation remains above the MPR.
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Source: imf.org
Kenya: NSE Amends Trading Rules to Support Block Trades
February 2, 2023--The Nairobi Securities Exchange (NSE) has amended its trading rules to allow for block trades as it seeks to drive more liquidity in the market.
A block trade is a large, privately negotiated securities transaction. Normally, block trades are arranged away from public markets to lessen the effect on the security's price.
At the NSE, block trades shall constitute the sale of shares whose value exceeds Sh3 billion in value and constitute 5 per cent or more of an Issuer's total issued shares subject to a maximum of 24.99 per cent.
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Source: allafrica.com
Kenya: Retail Investors At the NSE Hit 300,000 On Digitalization
February 1, 2023--The number of retail investors participating in Unit Trusts has risen significantly over the past decade driven mainly by the use of technology that has seen market players attract more clients, a new report shows.
According to the CMA Q4 Soundness report, the number of retail investors in capital market products rose to 300,000 as of September 2022 from 84,000 in September 2012.
This has led to a 5-fold increase in Assets Under Management (AUM) by CISes to more than Sh155 billion as at the end of the quarter under review, compared to the corresponding period in 2012.
CMA notes that the increase in retail investors has also been fueled by the approval of more fund managers and asset classes under umbrella Collective Investment Schemes (CIS).
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Source: allafrica.com
Nigeria's Economy to Grow By 3% in 2023-UN
January 30, 2023--Commodity exporters in Africa will likely face weaker market conditions given the expected global economic slowdown, it said
The Nigerian economy is expected to grow by 3 per cent in 2023, the United Nations (UN) has said.
The UN, in its 2023 World Economic Situation and Prospects report published on its website, said high inflation and power supply issues are impacting growth in Nigeria.
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Source: allafrica.com
Africa-Economic Growth Decelerates Before Full Recovery From Pandemic-Led Contraction
January 25, 2023--Confluence of shocks on economies raised imbalances and elevated risks, says UN
Economic growth in Africa is forecast to slow down this year while the level of economic activities remains below the pre-pandemic level, according to the United Nations World Economic Situation and Prospects (WESP) 2023, which was launched today.
A series of severe and mutually reinforcing shocks-the COVID-19 pandemic, the war in Ukraine and resulting food and energy crises, surging inflation, debt tightening, as well as the climate emergency- battered the world economy in 2022. Against this backdrop, world output growth is projected to decelerate from an estimated 3.0 per cent in 2022 to 1.9 per cent in 2023, marking one of the lowest growth rates in recent decades.
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Source: allafrica.com
