BUSINESS - The African Mirror

Mar

07

2025

Nigeria reduces inflation rate, but the cost of living remains high – here’s why

BUSINESS

NIGERIA recently rebased its consumer price index (CPI) from 2009 to 2024, leading to a significant drop in the reported inflation rate from 34.80% to 24.48%. This change has sparked discussions on the likely impact on economic planning, policy decisions, and public perception of inflation. Taiwo Odugbemi, an economist, unpacks what it means for a country to rebase its inflation rate and its implications for citizens. What is inflation rate rebasing and how is it done? Inflation rate rebasing follows a structured approach led by the National Bureau of Statistics to improve the accuracy of inflation measurements. Essentially what it…

Mar

05

2025

By STEPHEN ONYEIWU

Nigeria’s 2025 budget has major flaws and won’t ease economic burden

BUSINESS

THERE are doubts as to whether Nigerian President Bola Tinubu’s N54.99 trillion (US$36.6 billion) 2025 budget will lay a solid foundation for addressing some of the country’s current economic challenges. Economist Stephen Onyeiwu unpacks these challenges and sets out why the 2025 budget won’t change Nigeria’s economic landscape (though it has some silver linings). What are Nigeria’s four biggest economic challenges? Firstly, Nigeria’s economy has grown at a subdued average rate of about 3% for the past three years. Though comparable to global economic growth, this rate of growth is insufficient to create jobs and alleviate poverty. The official unemployment…

Mar

05

2025

By The African Mirror

Africa urged to leverage transformative financing and regional integration for sustainable infrastructure development

BUSINESS

THE 2024 Programme for Infrastructure Development in Africa (PIDA) Week has kicked off in Addis Ababa with a strong call for Africa to harness transformative financing and regional integration to bolster the continent's infrastructure sector. The event highlighted the critical need for improved infrastructure to enhance economic activity, efficiency, and competitiveness across Africa. Participants emphasized that inadequate infrastructure in transport, communication, water, and power continues to hinder Africa's economic progress. According to Claver Gatete, Under Secretary General of the United Nations and Executive Secretary of the Economic Commission for Africa (ECA), inadequate infrastructure increases production and transaction costs, reducing Africa's…

Feb

28

2025

By The African Mirror

G20 calls for enhanced monitoring of financial reforms, cites implementation gaps

BUSINESS

THE G20 Finance Ministers and Central Bank Governors concluded their first meeting under the South African Presidency with a call for a comprehensive review of the implementation of financial reforms established over the past 15 years. The move, announced in a chair's summary released after the two-day meeting in Cape Town, aims to identify gaps and improve the effectiveness of reforms designed to bolster the global financial system. The Financial Stability Board (FSB), with the assistance of standard-setting bodies (SSBs), will spearhead the review. This comprehensive assessment comes amid concerns about the consistent, full, and timely adoption of agreed international…

Feb

28

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

With surging prices, cocoa is fast becoming a sweet opportunity for Nigeria’s farmers and investors

BUSINESS

NIGERIA’S cocoa industry is undergoing a transformation, characterized by record-high prices, soaring exports, and an increasing investor appeal. As the West African country accelerates efforts to diversify its economy beyond oil, cocoa is emerging as a key player — offering not just revenue but a chance to reclaim Nigeria’s place in the global cocoa market. Cocoa prices in Nigeria surged by over 700% by December 2024 compared to January 2023, reaching an all-time high of ₦15 million (about US$10000) per tonne, driven by global supply shortages, rising demand from Europe and Asia, and currency fluctuations, according to the Cocoa Research…

Feb

27

2025

By The African Mirror

President of Ghana assures the nation of the independence of the Bank of Ghana

BUSINESS

IN the heart of Accra, a profound shift was taking place. The grand halls of the presidential palace witnessed a ceremony that would mark the beginning of a new chapter in Ghana's economic journey. President John Dramani Mahama stood tall, his voice resonating with conviction as he addressed Dr. Johnson Pandit Kwesi Asiama and Dr. Zakari Mumuni - the newly appointed Governor and First Deputy Governor of the Bank of Ghana. "When governments resort to unsustainable consumption expenditures financed by excessive and unregulated money printing, the consequences are severe," Mahama declared, his words hanging heavy in the air. "From spiralling…

Feb

25

2025

By MAMADOU CAMARA

Mining Mali: how policy changes are reshaping the sector

BUSINESS

AS Mali’s mining sector faces growing tensions — highlighted by the recent seizure of gold stocks from the Canadian company Barrick by the military government — questions about economic sovereignty and mining governance have become more relevant than ever. The mining sector plays a strategic role in Mali’s economy, with gold as its driving force. Yet, governance challenges persist at the heart of the sector’s evolution. In this interview, Mamadou Camara, a mining policy researcher, examines ongoing reforms, the impact of these developments, and the key challenges that must be addressed to ensure the sustainable and equitable exploitation of Mali’s…

Feb

24

2025

By ANDREW ROBERT DONALDSON

South Africa’s finance minister wanted to raise VAT: the pros and cons of a tricky tax

BUSINESS

SOUTH Africa’s finance minister, Enoch Godongwana, cancelled the unveiling of the country’s 2025 budget as it was due to be released. The move is unprecedented in the country’s history. The reason for the abrupt cancellation was the failure of the minister to get cabinet approval for the proposal to raise value-added tax (VAT) from 15% to 17%. VAT is the second biggest contributor to tax collection after personal income tax, followed by corporate taxes. The strongest opposition to the idea came from parties that have joined the African National Congress in a government of national unity which was formed after…

Feb

21

2025

By BONFACE ORUCHO, BIRD STORY AGENCY

Africa’s rating agency will need to establish credibility

BUSINESS

THE recent endorsement by African heads of state to create an African credit rating agency marks a crucial move that will reshape how the continent engages with global capital. However, it will need to establish credibility amongst investors when applying a "new lens", to be effective, according to economists. Set for launch in June, the agency seeks to challenge outdated perceptions of financial risk. Experts believe the agency will strengthen Africa’s economic sovereignty. According to Nomahlubi Jakuja, a South African economist, an African credit rating agency is “meant to create certainty for the investor that the borrowers (African countries) are…

Feb

20

2025

By DANIELLE RESNICK

Ecowas breakup could push up food prices and worsen hunger in west Africa

BUSINESS

THE Economic Community of West African States (Ecowas) lost three of its founding members on 29 January 2025. Burkina Faso, Mali and Niger comprised 16% of the bloc’s population of 424 million and 7% of its economy. Some commentators have labelled their departure – first announced a year ago – as “Sahelexit”. The decision to leave Ecowas was made by the three countries’ military leaders and is now poised to take effect legally. The three countries have created the Alliance of Sahel States (Alliance des États du Sahel, AES), a mutual defence and security pact formalised through the Liptako Gourma…