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African Growth at 7-Year High, But Not Thanks to Its Major Economies

Growth in Africa’s two largest economies may be sputtering along but that won’t stop the continent’s gross domestic product from expanding at the fastest pace since at least 2012.

GDP growth for the continent is forecast to accelerate to 4 percent this year, up from an estimated 3.5 percent in 2018, making it the fastest-growing region in the world after Asia, according to the African Development Bank. And that’s despite Nigeria and South Africa, which make up almost half of the continent’s GDP, “pulling down Africa’s average growth,” as the Abidjan-based lender said in its latest economic outlook report.

Nigeria’s GDP will expand by 2.3 percent in 2019, which is below the rate of population growth, as the government struggles to reduce the nation’s oil dependence and attract foreign investment. South Africa’s expansion will be even slower, at 1.7 percent, as the continent’s most-industrialized economy battles to recover from last year’s recession. Both countries are in the AfDB’s list of 10 slowest-growing economies.

While the powerhouses in western and southern Africa struggle to gain meaningful momentum, the continent’s economic growth will once again be driven by East Africa, which will be the fastest-expanding region for the fifth straight year. Ethiopia, Kenya, Rwanda and Tanzania all feature on the AfDB’s list of 10 fastest-growing economies for 2019. Egypt, the biggest economy after Nigeria and South Africa, will also help drive growth. Output in the Arab world’s most-populous country will rise around 5.5 percent this year as the government’s structural reforms attract more investment.

Subdued growth in southern Africa is due to South Africa’s weak output, which affects neighboring countries, the AfDB said. While West Africa’s prospects are more upbeat, they may be clouded by risks including uncertainty in global commodity prices and security concerns in some countries, the lender said.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: EJ Yao [1], [2].

Rwandan President Kagame Makes a Case for Investment in Africa

Rwandan President Kagame said that Africa is open to business partnerships with the rest of the world and has since improved in openness and was moving as a bloc toward a free trade area.

President of Rwanda, Paul Kagame, has called for increased investment in Africa, saying that countries on the continent understand the importance of foreign direct investments on their economies and have been working to create a friendly environment.

Kagame was speaking on Thursday evening in New York, United States at an NBA Board of Governors meeting that attracted NBA club owners and executives.

The President said that Africa is open to business partnerships with the rest of the world and has since improved in openness and was moving as a bloc toward a free trade area.

“Africans are beginning to understand that there are certain things we have to get for ourselves as they seek partnerships with the rest of the world,” the Head of State said.

Kagame said that the African continent has also been rolling out several integration initiatives further improving the business conditions.

“Africa is open to doing business with the rest of the world, Africa has a lot to offer,” he said.

He added: We are seeing increased openness, we have created a continental free trade area with 50 African countries signing up to that, with a number of them having already ratified the agreement.”

“We have brought Africa together and united it through regional integration. This is of interest to Africa but should be of interest to the United States and other partners as well.”

The President told the American investors in presence that the right moment to invest on the continent would be now because their ventures would grow with the continent.

“This is the moment to invest in Africa. You don’t have to wait, invest now and grow with Africa as it grows,” the Head of State added.

Kagame said that one of the benefits of investing in Africa is the demographic dividend, with a majority of the population being youthful.

The President also shared insights into Rwanda’s recovery following the 1994 Genocide against the Tutsi, which claimed over one million lives.

He said that after the Genocide almost everything was a priority for the country considering the destruction.

“Everything was a priority and the biggest challenge was where do you start from? We started from scratch, we started by putting pieces together, bringing people back together, justice, security, rebuilding schools,” he said.

Over time, Kagame said, the country was able to create its own unique solutions and roll out initiatives which helped promote unity and reconciliation.

“In a period of 12 years, we created a justice system based on our tradition where we tried over one million people. We look back and find that national unity has been holding, justice has taken place, there has been forgiving,” he said.

Earlier Thursday, President Kagame held talks with the United Nations Secretary-General Antonio Guterres at the United Nations Headquarters in New York.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].