BUSINESS - The African Mirror

Jul

05

2022

Central African Republic President: Crypto is key to financial inclusion

BUSINESS

RACHEL SAVAGE CRYPTOCURRENCIES are the solution to tackling financial exclusion in the Central African Republic, its President Faustin-Archange Touadera said, citing the cost of opening bank accounts. "The alternative to cash is cryptocurrency," Touadera said at a launch event for crypto initiative Sango hosted by the country, after it became the first African state to make bitcoin legal tender in April. "For us, the formal economy is no longer an option." The move to adopt cryptocurrencies in a country where internet use is low and electricity unreliable has raised eyebrows among crypto experts, puzzled lawmakers and residents, and drawn words…

Jul

02

2022

By STEPHAN MANNIN

Kenya and South Africa offer insights into digital economy challenges and alternatives

BUSINESS

THE World Bank is warning of the real danger of a massive economic downturn across the world. In a recent analysis it warned that many countries – including those in sub-Saharan Africa – will be facing economic challenges due to rising food and fuel prices. At the same time, however, there is unshakeable optimism around the growth potential of African economies as a whole and specifically the digital economy. The rapid rise of tech hubs and startups in urban areas in sub-Saharan Africa in recent years seems to support that. Many observers have, therefore, identified the digital economy as an…

Jul

09

2022

By The African Mirror

Explainer: Why Ghana has returned to the IMF

BUSINESS

COOPER INVEEN and RACHEL SAVAGE Hundreds took to the streets of Ghana's capital Accra last week to protest over its deteriorating economy. Days later, the government of one of West Africa's most prosperous nations announced it would begin formal talks with the International Monetary Fund (IMF) for support. It was a decision many analysts long thought inevitable, despite repeated pledges from finance minister Ken Ofori-Atta to never again seek IMF assistance. Why did the country reverse course, and what could the IMF demand in return? WHY NOW? Inflation hit an 18-year high of 27.6% in May, capping off a year…

Apr

05

2022

By The African Mirror

Dangote says it will complete its Nigerian oil refinery in the fourth quarter

BUSINESS

CAMILLUS EBOH DANGOTE'S 650,000 barrels per day (bpd) oil refinery being built in Nigeria is due to begin production by the fourth quarter of 2022, Group Executive Devakumar Edwin said. "75% hydraulic testing ... as well as 70% of electrical cable fitting have been completed preparatory to the completion of the refinery in the fourth quarter of this year," Edwin said during a site tour with Nigeria's Information Minister Lai Mohammed. The refinery, being built at a cost of $19 billion in Lagos, has 4.74 billion litres of storage capacity, Edwin said. He added that 75% of products will be…

Apr

04

2022

By The African Mirror

Good prospects for African economy

BUSINESS

CONRAD ONYANGO, BIRD STORY AGENCY GLOBAL economists see Africa’s economy in 2022 as presenting a mixed bag, with, on one hand, debt and drought shocks that will slow growth and on the other hand, the dual effects of a Russia-Ukraine war will that could create a boom or bust for some countries. Metal exporting countries are tipped to gain from higher budget receipts as the Russian-Ukraine conflict unlocks their investment potential. Conversely, import-reliant nations will experience fiscal constraints on the back of a higher cost of food and fuel prices triggered by the war in Europe, as well as civil…

Apr

02

2022

By The African Mirror

Cape Town eyes Africa’s top spot in financial hubs

BUSINESS

CONRAD ONYANGO, BIRD STORY AGENCY CAPE TOWN is one step away from claiming Africa’s number one ranking as the continent’s top financial centre, thanks to ‘significant’ improvement on its ranking and rating scores over the last year. The latest Global Financial Centers Index shows that thanks largely to its improved Fintech ratings, Cape Town has toppled seven cities across the world to improve its rankings from position 62 in September 2021 to settle at number 54 globally. Cape Town is now one rank shy of Casablanca (53) after Morocco’s port city - which has held the top Africa spot since…

Apr

01

2022

By The African Mirror

Uganda study shows text messages can boost tax compliance: here’s what worked

BUSINESS

EVERY government needs money to fund its political, social and economic duties. Much of what they spend is generated from taxes, fines and sales of public goods and services. The exchange of these revenues for government services is at the heart of the social contract citizens make with their governments. As the primary source of internal revenue, taxes play a key role in making growth sustainable and equitable. In most countries, tax payment is compulsory, and people who fail to comply are normally penalised. Author ISABELLE COHEN, Assistant Professor at the Evans School of Public Policy , University of Washington…

Apr

06

2022

By The African Mirror

South African factory activity at four-month high in March

BUSINESS

SOUTH AFRICAN private sector activity expanded at a faster pace in March compared with February, helped by growth in employment and new orders, a survey showed on Tuesday. The S&P Global South Africa Purchasing Managers' Index (PMI) rose to 51.4 in March from 50.9 in February, posting its highest reading in four months. Anything above 50.0 indicates growth in the sector. The employment index showed expansion for the first time in four months and at the strongest rate since June last year, while new orders climbed as well, albeit at a slower pace. But the rise in the headline PMI…

Apr

09

2022

By The African Mirror

More African central banks consider digital currencies – a possible game-changer for the continent

BUSINESS

CONRAD ONYANGO, BIRD STORY AGENCY THE foray into central bank digital currencies (CBDC's) in Africa is seen intensifying in 2022, following the roll-out and widespread uptake of the e-Naira, the continent’s first virtual currency backed and issued by a central bank. More than 80 percent of world’s central banks are now considering launching CBDC's, according to PwC’s 2022 CBDC Global Index. “This year, central banks are ramping up activity in the digital currency space. The success of Nigeria’s eNaira is likely to spur CBDC development in countries where financial inclusion is one of the key desired outcomes,” said PwC UK,…

Apr

09

2022

By The African Mirror

South African business confidence slows in March on Russia-Ukraine war impact

BUSINESS

SOUTH AFRICAN business confidence slowed in March, as the uncertainty caused by the Russia-Ukraine war weighed, data showed on Friday. The South African Chamber of Commerce and Industry's (SACCI) monthly business confidence index (BCI) fell 95.6 to in March from 96.9 in February. "After indicating a faster recovery in January and February 2022 as the Covid-19 effect faded, the unexpected Russian military campaign in Ukraine added to global business uncertainty and caused the BCI to slow in March 2022," SACCI said in a statement. "South Africa's business confidence may struggle to maintain its current higher levels." Russia's six-week-long incursion in…