Economy | - Part 65

Zambian President Lungu Faces Challenge to Repair Economy

LUSAKA, Capital Markets in Africa: Zambian President Edgar Lungu, who was inaugurated Tuesday after his narrow re-election last month, faces two immediate challenges: boosting an economy that’s expanding at the slowest pace in 17 years and reining in a ballooning budget shortfall. “We will remain focused on facilitating a conducive business and investment environment,” Lungu, 59, said in his inauguration speech in front of an audience that packed the 60,000-seat National Heroes stadium in Lusaka, the capital…

Nigeria: Policy Action in a Time of Stagflation

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LAGOS, Nigeria, Capital Markets in Africa: The Nigerian economy is currently between a rock and a hard place as policymakers grapple with stagflation i.e. the simultaneous emergence of negative economic growth and high inflation. Inflation has accelerated in 2016, outstripping all expectations to hit a decade-long high of 16.5% in June. GDP growth, meanwhile, turned negative in the first quarter of the year as the economy contracted by 0.36% year-on-year. With a recession looming, the…

The State of South Africa’s Economy: Half Year Review and Prospects

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LAGOS, Nigeria, Capital Markets in Africa: Although there have been some positive developments of late – a stronger trade performance in Q2, another reasonable score in the purchasing managers’ index (PMI) survey in July, and a rally in the rand – many of the South African economy’s fundamentals remain very poor. Indeed, NKC African Economics has recently lowered its real GDP growth forecast for 2016 to zero although we still expect the economy to grow…

Sub Saharan Africa: Weathering The Storm

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LAGOS, Nigeria, Capital Markets in Africa: An uneven recovery in commodity prices, stricter financing conditions and adverse weather patterns have forced many economies in sub-Saharan Africa (SSA) to reassess their structural underpinnings. Faced with rapidly depleting fiscal and foreign exchange reserves, constrained international financing and an understanding that resource prices could remain lower for longer, commodity exporters are at pains to initiate timely and coordinated policy responses to ensure quick, durable and more inclusive levels…

Ghana’s Monetary and Fiscal Policy Choices in Difficult Times

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LAGOS (Capital Markets in Africa) – Ghana’s economic decline in the last 5 years left the sense of a “loud silence” as the investor community was stunned by the adverse turn of events in an economy recently (and probably still) perceived as Africa’s rising star. While the economic downturn was triggered by domestic factors underpinned by the fiscal and monetary policy choices, the collapse in commodity prices due to weakened demand in China and the…

Equatorial Guinea Economy Seen Weaker by IMF as Oil Output Drops

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MALABO, Capital Markets in Africa: Equatorial Guinea’s economy will contract further this year due to falling oil output and low crude prices, the International Monetary Fund said. The outlook for the central African oil producer is “very challenging,” the fund said in a statement late Thursday. “Weak oil revenues and limited buffers will require further cuts to public investment, leading to a deep contraction of the large construction sector and public administration,” the statement said. “As…

Zambia, IMF Reach ‘Broad Consensus’ on Deal, Lungu Says

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LIUSAKA, Capital Markets in Africa: Zambia has made “great progress and reached broad consensus” with the International Monetary Fund on a planned support package, President-elect Edgar Lungu said. Yields on the nation’s Eurobonds fell to the lowest in more than a year. Lungu, who narrowly won a Aug. 11 presidential election in Africa’s second-biggest copper producer, said in an e-mailed statement that having been elected for a whole term has given him time to implement difficult decisions he…

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