A rate-cutting spree that saw seven of the world’s 10 major, developed-market central banks cut rates last year paved the way for a global risk binge, despite economic, political, and geopolitical dark clouds. Africa was not left out of the soiree, but local currencies remained the Achilles heel. 2024, the year of the dovish pivot…
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Christmas is no longer just a religious festival; over the years, it has become more of a celebratory holiday for spreading love and cheer. It is the most awaited time of the year, not just because you get to spend quality time with your loved ones or exchange gifts with them but also because businesses…
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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…
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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…
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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…
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The economy is a snapshot of people’s activities — i.e. the allocation of resources including money and time. When the economic story becomes too noisy to interpret, and too much bad air conquers the circulating narrative, it can lead people to expect the worst. What people expect can soon end up happening, and right now…
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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…
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2022 is the year many had projected that the world economy will fully recover from the pandemic. Not until Omicron struck, dampening the upbeat recovery mood. With the worst of the pandemic behind us and the risk of multiple waves and mutants ahead, economic expectations are being dimmed, the most recent being the International monetary…
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The year of the metal rat (i.e. 2020) is clearly not the year for the Nigerian consumer. A cross-current of declining incomes and rising prices implies that there is no robust consumer out there. Lending credence to this fact is the pessimistic response of the Q2’20 Consumer Expectations Survey (CES) which was attributed largely to…
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The use of Gross Domestic Product (GDP) as a measure of economic progress has been under fire by welfare economists in recent years as they postulate that GDP figures do not capture the adverse environmental effects of economic processes. Economic progress can be linked to the people’s prosperity and happiness and citizens of countries that…
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