South Africa, thought to be the continent’s No. 1 economy until early 2014 when Nigeria rebased its gross domestic product, must now give up its short-lived No. 2 spot to Egypt, according to a report by professional services company KPMG.
The South African economy is expected to grow by 0.6 percent in 2016, and is now the third-largest economy on the continent behind Nigeria and Egypt, according to the International Monetary Fund World Economic Outlook released in mid-April, KPMG reported.
Netherlands-based KPMG is considered one of the world’s Big Four auditors along with Deloitte, EY and PwC.
The KPMG report is not exactly a surprise. In October, economic analysis from Moscow-based investment bank Renaissance Capital (RenCap) said that South Africa may lose its place as the second biggest economy in Africa, BusinessTech reported.
Based on exchange rates, South Africa won’t be able to retake the continent’s second-place position anytime soon, said U.K.-based research firm research firm Business Monitor International.
South Africa is still the continent’s most developed economy, and has a more diversified economic base than Egypt, but its fall from first and second place among the continent’s giants is of great concern, especially since it’s attributed mostly to weakness in the rand as a result of domestic issues, wrote Christie Viljoen, financial risk manager at KPMG in South Africa.
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Ghana: Wealthiest now consume nearly 7 times more than poorest
Ghana’s economy has witnessed steady positive growth and substantial social change over the last 30 years, economists say, but they have raised concerns over mounting inequality, which now sees the richest Ghanaians consuming 6.8 times more food than the poorest, up from 6.4 in 10 years ago.
While around a third of all national consumption is attributed to the wealthiest 10 per cent in the West African country, the poorest 10 per cent consume just 1.72 per cent, according to the Ghana Poverty and Inequality report produced this year.
We estimate that in Ghana, a child is almost 40 per cent more likely to live in poverty than an adult
The growth rate among the two groups has witnessed positive trends since 1990s, but the poor’s growth rate has been lower than the wealthiest groups, Professor Andy Mckay from the economics department of University of Sussex, in England said during a presentation of the report last Friday.
The address covered, poverty and inequality in Ghana over 20 years and was organised by the United Nations International Children Emergency Fund.
Those in attendance included policymakers, economists, civil society groups and a host of development partners.
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Blame The Rand: Egypt Now No. 2 Economy In Africa, South Africa Slips To No. 3
South Africa, thought to be the continent’s No. 1 economy until early 2014 when Nigeria rebased its gross domestic product, must now give up its short-lived No. 2 spot to Egypt, according to a report by professional services company KPMG.
The South African economy is expected to grow by 0.6 percent in 2016, and is now the third-largest economy on the continent behind Nigeria and Egypt, according to the International Monetary Fund World Economic Outlook released in mid-April, KPMG reported.
Netherlands-based KPMG is considered one of the world’s Big Four auditors along with Deloitte, EY and PwC.
The KPMG report is not exactly a surprise. In October, economic analysis from Moscow-based investment bank Renaissance Capital (RenCap) said that South Africa may lose its place as the second biggest economy in Africa, BusinessTech reported.
Based on exchange rates, South Africa won’t be able to retake the continent’s second-place position anytime soon, said U.K.-based research firm research firm Business Monitor International.
South Africa is still the continent’s most developed economy, and has a more diversified economic base than Egypt, but its fall from first and second place among the continent’s giants is of great concern, especially since it’s attributed mostly to weakness in the rand as a result of domestic issues, wrote Christie Viljoen, financial risk manager at KPMG in South Africa.
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SA no longer 2nd largest economy in Africa on weak rand
Cape Town – The latest World Economic Outlook (WEO) by the International Monetary Fund (IMF) suggests that South Africa is now only the third-largest economy on the African continent – behind Nigeria in first place, followed by Egypt.
Were it not for the rand’s slump, South Africa would not have surrendered its second place during 2015, said Cristie Viljoen, manager in Financial Risk Manager at KPMG in South Africa.
Viljoen regards the latest WEO as reflecting “sobering” gross domestic product (GDP) statistics for SA. South Africa has been known as the continent’s second-largest economy since Nigeria rebased its GDP data in early 2014.
The WEO data further suggests that the SA economy will grow by a mere 0.6% this year.
Viljoen emphasised that SA remains Africa’s most developed economy and has a more diversified economic base than the Egyptian economy.
“However, SA’s fall from first and now second place among the continent’s giants is of great concern, especially as this development is largely attributed to weakness in the rand that, in turn, has largely been as a result of domestic issues,” said Viljoen.
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Uganda blocks social media, clamps down as president sworn in
Ugandan authorities blocked social media sites including Twitter, Facebook and Whatsapp on Thursday as President Yoweri Museveni was sworn in after a disputed re-election that led to a crackdown on dissent.
KAMPALA: Ugandan authorities blocked social media sites including Twitter, Facebook and Whatsapp on Thursday as President Yoweri Museveni was sworn in after a disputed re-election that led to a crackdown on dissent.
Museveni, 71, who took the oath of office at an event in Kampala, officially won 60 percent of the vote in the February ballot, extending his 30-year rule by another five years.
The opposition said the vote was rigged and protests broke out, leading to clashes with police and dozens of arrests.
Ugandan officials said it was free and fair, and dismiss accusations that they have clamped down on free speech.
On Wednesday, police arrested opposition leader Kizza Besigye after a street protest. Besigye, who heads the Forum for Democratic Change party, won 35 percent of the vote. He has been under house arrest on and off since then.
Godfrey Mutabazi, the executive director of Uganda’s telecommunications regulator, said security agencies had asked access to social media websites to be blocked “to limit the possibility of terrorists taking advantage” of visits by dignitaries.
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