economy - The African Mirror

Oct

2022

Nigeria’s 2023 budget is a plan of despair and won’t change the tempo of the economy

NIGERIA’S 2023 budget, recently presented by President Muhammadu Buhari to the National Assembly, has generated a furore. There are concerns about the impact on the country’s rising deficits and debt, as well as its failure to address some of the structural deficiencies behind declining revenues and rising inflation. The 2023 budget expenditure of 20.51 trillion naira (US$43.7 billion) is the highest ever. More than half of this is money the government doesn’t have and has to be financed with new debt. This will mean that the country exceeds the 3% of GDP threshold stipulated by the Fiscal Responsibility Act of…

Sep

2022

By The African Mirror

Isuzu Trucks Drive Rural Wild Coast Economy

MOTORING NEWS

SINCE the introduction of the first Isuzu truck in 1975, Isuzu Trucks have become a familiar feature on South African roads. Isuzu boasts an enviable record of being the top truck brand by sales in South African for the past nine in a row in the medium, and heavy-duty segments of the truck market. This makes Isuzu trucks an integral part of the South African economy. While other regions in the country might have multiple options for transportation of goods, one area in the country, the Wild Coast in the Eastern Cape, seems to have a singular preference for the…

Jul

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…

Dec

2021

By The African Mirror

Senegal’s economy to rebound to 5% growth in 2021, says IMF

BUSINESS

Senegal's economy will grow 5% in 2021 thanks in part to solid industrial output, the International Monetary Fund said on Wednesday, revising up a previous forecast of 3.5% growth for this year. The Fund said it had reached a staff-level agreement with the West African nation that could pave the way for the disbursement of around a further $180 million under an existing loan deal. Senegal is seeking to recover from the economic shock of the pandemic, which caused its real GDP growth to slow to 1.5% in 2020 from 4.4% a year earlier. "Senegal's economic rebound through September 2021…

Dec

2020

By The African Mirror

South African economy rebounds in Q3 led by mining, manufacturing

BUSINESS

SOUTH Africa’s economy rebounded strongly in the third quarter as coronavirus restrictions were eased, with mining and manufacturing leading an expansion across all sectors. Africa’s most advanced economy was in recession before the COVID-19 pandemic hit, with a strict lockdown from the end of March leading to a deeper economic contraction. Statistics South Africa said on Tuesday that gross domestic product expanded by 66.1% in seasonally adjusted, annualised terms in July-September from the second quarter, when the economy shrank by a revised 51.7% as lockdowns stalled activity. Compared with the same period a year earlier, GDP shrank by 6% in…

Dec

2020

By The African Mirror

Gambia’s economy to shrink 1.5% in 2020

BUSINESS

GAMBIA’S economy will contract 1.5% in 2020 versus a previous estimate of 6.5% growth as a result of the impact of the coronavirus pandemic on tourism, the finance ministry has said. "The new growth estimates are based on the shocks associated with the closure of airports, land borders and lack of tourism activities," it said, projecting a rebound to growth of 5.9% in 2021. The gross domestic product of mainland Africa's smallest country grew 6% in 2019 despite a sharp drop in agricultural output and the bankruptcy of Thomas Cook, the travel operator that brought around 40% of annual visitors.…

Sep

2020

By The African Mirror

Ethiopian Prime Minister Abiy Ahmed introduces new currency notes

BUSINESS

THE government of Ethiopia has introduced new currency notes, with enhanced security features and other distinctive elements. The new currency notes replace the Birr 10, 50 and 100 notes while an additional Birr 200 note has also been unveiled. In making the announcement, Ethiopian Prime Minister Abiy Ahmed, said the current Birr 5 note remains unchanged and will be turned into coin format soon. Ahmed said the currency change is aimed at gathering currency circulating informally and outside of financial institutions; curb corruption and contraband and support financial institutions confront currency shortage. Ahmed said: "Most of the print work is…

Jul

2020

By The African Mirror

Zimbabwe economy to shrink by 4.5%

BUSINESS

ZIMBABWE's economy is expected to shrink by 4.5% this year owing to the fallout from the COVID-19 pandemic and a brutal climate change-related drought, the finance minister said on Thursday. The crucial mining sector will contract by 4%, Finance Minister Mthuli Ncube added in a mid-term budget speech, although he projected that GDP would rebound to 7.4% growth in 2021. Ncube added that inflation was expected to gradually decline to 300% by December, compared with 737.36% currently. Zimbabwe's economy was in a mess even before COVID-19 struck, with rampant inflation, chronic shortages of food, foreign currency and medicines, all worsened…