In practical terms, President Kagame is poised to remain President for life as Rwandans continue to vote in favour of peace and development over justice and democracy. With a c.99% vote share in the 2024 presidential elections, Paul Kagame – the incumbent Rwandan President – crushed election victory and will be extending his nearly a…
Read more
Suppose a central bank is incapable, or unwilling, to meet all the demand for foreign exchange at its official exchange rate and seeks to protect or provide a temporary stopgap for its foreign exchange reserves during unpalatable balance of payment adjustments. In that case, it often implements foreign exchange controls. Unfortunately, these restrictions typically encourage…
Read more
A strong fiscal position is necessary to achieve strong economic growth, build resilience to shocks, and liberate Africa from its current pickle. Many African countries are still dealing with post-pandemic financial stressors—high borrowing costs and re-financing risks—and middling politics. This is consistent with the broad emerging market trend of rising public debt burden, rising much…
Read more
Leadership is crucial to achieving sustainable economic growth as it involves putting in place structures that enable growth and progressive development. Elections are a referendum on the president and his economic legacy and are therefore a key determinant of a country’s social, political, and economic performance. A country’s pace of development relies heavily on the…
Read more
Economic pressures bring political instability – and economic pressures abound today. Global supply chains are still suffering from frictions related to the pandemic-re-opening, there is war in two of the world’s key food exporters, and sanctions on one of the world’s biggest crude oil exporters. Life could not be any worse for emerging economies that…
Read more
Globally, climatic shocks have become more frequent and intense. Many people still think of climate change as a future phenomenon, probably because climate change-related projections are tied to future dates: 2030, 2050, or 2100, for instance. But we are, unfortunately, experiencing climate change, and have done so for some time now. Over the past century,…
Read more
14th February was not just about chocolates and roses; it was also the second anniversary of the COVID-19 pandemic in Africa. The COVID-19 pandemic brought atypical disruptions to Africa—crunching incomes, magnifying poverty and food insecurity, and leading the region into its first recession in 25 years. Faced with the shock of unprecedented proportions, Africa has…
Read more
The average African feels entitled to subsidies. Due to prevailing poverty, subsidies are perceived to be a necessity because of the wide gap between the market-determined price of goods and services and the financial strength of the wider population. From agriculture subsidies in Kenya and Malawi, to transport subsidies in South Africa, and fuel subsidies…
Read more
Money begets money. That is the logical justification for debt accumulation. The pursuit of economic prosperity or at least survival amidst limited economic growth explains why countries borrow. Debt is considered a stimulant – borrow, invest in productive activities, and reap the benefits of growth. However, as countries emerge from the troughs of the pandemic-induced…
Read more
Is Africa experiencing a coup culture resurgence? No less than 220 coups – attempted and successful – had been perpetrated in Africa since the 1950s, exceeding records from any other continent in the world. It is estimated that three of every four coups in the world take place in Africa, and the situation is even…
Read more
