| Author’s note: Zimbabwe is considered one of the most corrupt countries on the planet. The latest Corruption Perceptions Index scores the Southern African nation equal to junta-led Myanmar and war-torn Iraq. A recent exposé linking top government officials with gold smuggling and sanctions busting will only feed these perceptions. Meanwhile, Zimbabwe is looking to China to fund and build energy infrastructure. The country is overly reliant on hydropower generated from the Kariba Hydropower Station, and these projects aim to provide more reliable access to electricity. In Ghana, the MPC surprised with another big policy rate hike, while in Libya, it looks like investors comfortable with an elevated level of risk are flocking back to the North African nation.
Ghana: Another 150-bps interest rate rise, but why?
The MPC of Ghana’s central bank decided to raise the main policy rate by another 150 bps to 29.5% on March 27, bringing the cumulative increase to 1,600 bps since the hiking cycle started in October 2021. Raising interest rates yet again, given recent developments, is surprising. One also wonders why the MPC did not opt for a bigger hike during the previous meeting in January.
Libya: US’s Honeywell to build a refinery in Fezzan
On Sunday, March 26, Zallaf Libya Oil and Gas announced that it was entering into a joint venture with US engineering firm Honeywell International to build a refinery in Fezzan, in Libya’s southern desert. The investment is an expression of some confidence in stability.
Sudan: Further disinflation, but consumers continue to struggle
Sudan’s consumer price index (CPI) inflation eased to 63.3% y/y in February, from 83.6% y/y in January. Inflation has substantially cooled since last year – the rate stood at 258.4% y/y in February 2022. While the disinflation is encouraging, the inflation rate remains among the highest in the world. Sudanese continue to bear the detrimental economic consequences of political turmoil.Zimbabwe: Looking East for a solution to the power crisis
Zimbabwe is relying heavily on China to help fix its electricity crisis, with Chinese state-owned entities actively involved in some of Zimbabwe’s salient energy infrastructure projects. The Southern African country is over-reliant on hydropower and is unable to source electricity from its rundown coal-fired plants. Lake Kariba’s water level dropped to a record low of less than 1% in December 2022 and remains concerningly low even today, resulting in prolonged power outages that disrupt livelihoods and limit economic output.
Zimbabwe: Al Jazeera gold smuggling exposé implicates senior officials
A documentary by the Al Jazeera investigative unit, titled the Gold Mafia, has cast an unflattering light on the regime of President Emmerson Mnangagwa and alleges high-level involvement in gold smuggling, money laundering, and sanctions-busting in Zimbabwe. The exposé comes only months ahead of general elections but will not easily shift domestic sentiment. |
