Africa Economy

South Africa has unveiled a blueprint for economic recovery, with increased funding to support industry, job creation and a much-needed boost for infrastructure, although marginal rises in inflation and exogenous instability may hamper the ability of the government to provide any immediate palliatives.

It is no secret that China has been increasing its economic links with Africa at an exponential rate in recent years, with hydrocarbons-rich countries such as Nigeria among the chief beneficiaries. The previous decade has seen Abuja concluding multibillion-dollar deals with Beijing-based conglomerates across a variety of sectors. While the relationship does have its critics, China’s role in both trade and investment in Nigeria has become increasingly central – and not only in the oil sector.

Nigeria’s new Sovereign Wealth Fund (SWF), to be established with an initial $1bn in investment, should significantly improve the country’s management of its crude oil earnings. The launch of the new fund, announced recently by the minister of finance, should also provide greater economic stability, improve national infrastructure and boost investor confidence.

Un fort taux de croissance du secteur non agricole au premier semestre, auquel s’ajoutent des récoltes records, se sont traduits par une amélioration des perspectives de croissance du Maroc en 2011. L’inflation reste faible malgré une hausse supérieure aux prévisions. Le gouvernement travaille à un certain nombre de mesures pour enrayer le problème du déficit budgétaire, dont la forte hausse est source d’inquiétude.

Steady growth in Ghana’s economy has seen the country maintain its position on the World Economic Forum’s “Global Competitiveness Index 2011-12”, with the country keeping its 114th position among 142 countries. The economy is also posited to continue growing, with 20% expansion expected this year on the back of increased oil, gold and cocoa prices.

The prime functions of a newly revamped ministry are to reverse a decline in foreign direct investment (FDI) and to boost trade. On July 11, the federal government said it would replace the Ministry of Commerce and Industry with the Ministry of Trade and Investment (MTI). The new ministry, to be headed by Olusegun Aganga, the former minister of finance, will lead Nigeria’s efforts to increase private investment from both domestic and international sources, as well as to expand the manufacturing base and the number of local jobs.