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Tag: Kenya

Insurance systems as conduits of macroeconomic policy outcomes

When central banks lower policy rates or governments deploy countercyclical fiscal stimulus, the standard transmission narrative is well known: the cost of capital declines, intertemporal substitution favors present consumption, risk appetite increases, private investment accelerates, and aggregate demand recovers. Monetary easing should relax financial conditions and spur balance-sheet expansion. Fiscal transfers and spending should smooth…
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The Illusion of Precision: How markets trade on uncertain data

Why GDP, inflation, and FX numbers increasingly reflect narrative, not measurement Global markets depend on economic indicators that purport to be precise but often fall short. GDP growth expressed to the decimal, inflation to the basis point, and FX reserves to the dollar all offer a sense of certainty underpinning pricing and forecasting. Yet this…
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Africa’s fiscal state of play

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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Nigeria: Microlending clampdown in the offing?

Most technology-based products are founded on the idea of addressing pain points through solutions infused with ease, speed, and simplicity. Generally, ideas with these three features disrupt an industry legacy business model. When credit providers carved their niche in the fintech space, they capitalized on these principles – providing loans to virtually anyone, anywhere, and…
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Will CBDCs sail or sink?

When the cryptocurrency craze hit the world, currency regulators – Central Banks around the world – feared that their worst fears had been actualized. A currency they had no control over had been created, giving people an alternative to fiat currencies. As cryptocurrencies gained increasing popularity in countries around the world, especially populous ones like…
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