🔅 Africa to outperform the world in growth
Plus: Ghana gets paid for being green, Ukraine-Russia gives Africa a chance to feed itself, $30bn investment to put food on the table, And much more… ☕
Photo of the day: Dar es Salaam, Tanzania
Markets:
🔺 Nigerian SE: 52,657.88 (+2.74%)
🔺 Johannesburg SE: 80,791.36 (+10.60%)
🔻 Ghana SE: 2,429.55 (-0.59%)
🔻 Nairobi SE: 126.07 (-1.10%)
🔺 US S&P 500: 4,070.56 (+6.44%)
🔺 Shanghai Composite: 3,264.81 (+4.76%)
India: Gautam Adani, the Indian billionaire who shot up to become the third wealthiest person in the world, just got a huge reality check. US investment firm Hindenburg Research accused the Adani Group of stock manipulation and accounting fraud, and investors have been fleeing his companies ever since. The result? A whopping $20 billion wiped off Adani’s fortune, pushing him down to the seventh spot on Forbes’ rich list.
*Data accurate as of the close of markets across the continent
ECONOMY
Africa to outperform the world in growth
The African Development Bank Group just released a report, ‘Africa’s Macroeconomic Performance and Outlook’, that projected growth across all five African regions at higher than the global figures in 2023-2024. It also projects that the continent’s top five economies will be back in the top 10 fastest-growing economies in the world.
Which African countries are leading the way?
The top five economies are Rwanda, Côte d’Ivoire, Benin, Ethiopia, and Tanzania. There’s also a clutch of other countries projected to experience positive economic growth, including Niger, Senegal, The Democratic Republic of Congo, The Gambia, Mozambique, and Togo.
East Africa has some of the highest growth rates, with Ethiopia and Rwanda leading the region. West Africa and Central Africa are also seeing positive growth, although South Africa’s economic woes are weighing down southern Africa.
What about the long-term outlook?
Economist Jeffrey Sachs believes the continent can and will grow to 7% or more consistently in the coming decades, making it “the place to invest.”
However, it also faces significant challenges, with soaring food and energy prices, tighter global financial conditions, and increased domestic debt.
Still, the World Economic Forum says the African Continental Free Trade Area has the potential to create a competitive continental market, and the report recommends robust monetary and fiscal measures to address potential risks.
What’s the takeaway?
Africa has had to battle its way back from the pandemic and related economic woes, but it has the potential to rise to the occasion. With suitable measures and continued investment, Africa could be the world’s fastest-growing region in the coming decades.
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OTHER HEADLINES
Across the Continent
🌍 Ukraine Conflict: Africa’s Chance to Feed Itself | The Ukraine conflict disrupted grain deliveries and caused food prices to spike, but African Union’s Commissioner for rural economy and agriculture, Josefa Sacko, is looking at the bright side: This is a chance for African countries to produce more food domestically. She’s hoping that African countries will use the disruption as an opportunity to “change the narrative, change our approach” and stop relying on imported food. Instead, African countries could save money and strengthen their agricultural production. However, Josefa warned that the EU’s push for higher green standards could be a major hurdle for African producers looking to export to Europe. She pointed out that African producers need fair international markets and producer prices to comply with standards. In other words, if you want higher green standards, you’ve got to be willing to pay higher prices.
🇬🇭 Ghana Gets Paid for Being Green | Ghana just became the second country in Africa after Mozambique to receive payments from a World Bank trust fund for reducing deforestation and forest degradation emissions, aka REDD+. Ghana got $4.86 million for reducing 972,456 tons of carbon emissions from June to December 2019. With more sustainable cocoa farming and other initiatives, the country is working to meet its national emissions reduction commitments under the Paris Agreement and helping the world reach its 1.5-degree goal.
🌾 $30bn Investment to Put Food on the Table | African leaders, development banks, and international partners have made a commitment to invest $30 billion in food production in Africa over the next five years. The continent is facing its worst food crisis yet, with more than one in five Africans (278 million people) facing hunger. The goal is to help African countries boost their food production capacity and reduce their reliance on imports that can be subject to price spikes and shortages. Forty countries presented agricultural development plans to the African Development Bank and its partners, who will support those plans over the next five years. The bank also invested in fertiliser manufacturers to ensure Africa isn’t marginalised in the supply chain. The only challenge now is making fertiliser affordable for farmers, and governments may need to step in to help out there.
FOOD FOR THOUGHT
Proverb of the Day
“Slander by the stream will be heard by the frogs.”
— Mozambiquan Proverb.
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