Africa Economy

Internationally known for its capital, Agadir – a traditional holiday destination for European tourists – Souss Massa is increasingly positioning itself as an industrial centre and strategic gateway between North and sub-Saharan Africa. 

Amid a rise in demand for cryptocurrencies, especially in emerging markets, and increased appetite for sustainable finance globally, efforts are under way to develop a so-called green Bitcoin – that is, an ecologically sustainable cryptocurrency.

During last year’s US presidential campaign, Joe Biden promised to crack down on tax-evading multinationals, and he has now called for a global minimum corporate tax rate. However, some fear that President Biden’s plan may hinder developing economies’ Covid-19 recovery.

Most developing markets took a significant economic hit during the pandemic, while many traditional channels of lending have tightened. In this light, special drawing rights (SDRs) are emerging as an important tool available to governments to fund their Covid-19 responses and recoveries.

As a result of the economic fallout of Covid-19, emerging economies across the world are grappling with numerous challenges, including cash flow crises, the risk of prolonged recession and debt default. Many are looking towards development banks to help get their sustainable recoveries under way.

The African PE industry has become increasingly complex and diverse, with the arrival of global institutional investors in recent years paving the way for some of the world’s largest firms to enter the market. Between 2014 and 2019 the total value of the 1053 PE deals reported in Africa reached $25.4bn. While deal volumes have maintained an upward trend, their value has gradually eased, suggesting growing investor interest but smaller deal sizes. Moreover, in addition to consumer-driven industries, PE fund managers have diversified their strategies to invest across a variety of sectors such as IT, renewable energy, infrastructure and real estate.