<p>JOHANNESBURG (Reuters) &#8211; South Africa’s economic recovery plans face serious constraints with growing debt of state firms domestically and capital outflows as a result of global trade tensions, <a href="https://www.imf.org/en/News/Articles/2018/11/16/ms111918-south-africa-staff-concluding-statement-of-an-imf-staff-visit">the International Monetary Fund (IMF)</a> said on Monday.</p>
<p>In October the global lender said it saw Africa’s most industrialised economy expanding by 0.8 percent in 2018, down from a prior forecast of 1.5 percent. South Africa’s Treasury predicts growth of 0.7 percent.</p>
<p>The recession-bound economy and a bleak budget in October have piled pressure on President Cyril’s Ramaphosa.</p>
<p>“Some of the initial optimism has dissipated as growth remains stuck in low gear and reform implementation has faced constraints,” the IMF said, naming the state power firm Eskom as a key risk.</p>
<p>The president’s work is made harder by cash-strapped state-owned firms, including debt-ridden Eskom, which is struggling to supply the nation’s power.</p>
<p>The IMF said the proposal to amend property laws to allow for expropriation without compensation should be carefully considered and be guided by lessons of international experience.</p>
<p>“Land reform should focus on enhancing agricultural productivity and strengthening tenure security,” said the IMF.</p>
<p>A parliamentary team has recommended a constitutional amendment to make it possible for the state to expropriate land without compensation. The recommendation will now go to the national assembly for a vote.</p>
<p>Reporting by Mfuneko Toyana; Editing by James Macharia</p>
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South Africa’s economic recovery plans fading: IMF

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<p>The Yemi Dipeolu Special Adviser to the Nigerian President on Economic matters says the government&#8217;s investments in infrastructure and agriculture and other key sectors of the economy will lead to improved economic growth next year. CNBC Africa’s Christy Cole caught up with him on the side-lines of the KPMG CFO Forum.</p>


How Nigeria is positioning for economic growth – Yemi Dipeolu

<p>President Cyril Ramaphosa reported nearly R290 billion worth of investment pledges from local and international companies. PwC’s Strategy&amp; calculations suggest that this investment would add an estimated R338 billion to South Africa’s GDP over the 2019–2024 period, create or sustain an estimated 825 000 direct and indirect jobs (on average per year) and generate an estimated R59 billion in additional government revenue.</p>
<p>In addition, the investment would enable some R468.8 billion in potential production from 2025 to 2035. This production would, over the ten-year period, add an estimated R505 billion to South Africa’s GDP, create and/or sustain an estimated 116 000 direct and indirect jobs (on average per year) and generate an estimated R133 billion in government revenue.</p>
<p>On 16 April 2018, President Cyril Ramaphosa announced his five-year, US$100 billion investment drive in a bid to revive the South African economy. According to the president, his initiative is a response to the drop in total fixed investment in South Africa from 24% of GDP in 2008 to 19% of GDP in 2017, and foreign direct investment (FDI) inflows dropping 77% in rand terms over the same period 1.</p>
<p>Shortly after this announcement, President Ramaphosa began an international roadshow promoting trade and investment agreements with existing South African partners. A team of investment envoys was assembled to support the presidency, made up of former finance minister Trevor Manuel, former deputy finance minister Mcebisi Jonas, Afropulse executive chairperson Phumzile Langeni, and chairman of Liberty Group Jacko Maree. In addition, economist Trudi Makhaya was appointed as the president’s economic advisor.</p>
<p><strong>Early results</strong><br />
Initial investment pledges were made by the governments of the United Arab Emirates (US$10 billion), the Kingdom of Saudi Arabia (US$10 billion) and the Republic of China (US$14.7 billion)5.</p>
<p>In an announcement about the Presidential Investment Summit held in October, investment envoy, Jacko Maree supported the President’s benchmark vision of a 50/50 split between local and foreign investment to make up the projected $100 billion total sum6.</p>
<p>FDI is an important enabler of economic growth. For emerging market economies, foreign investment inflows are crucial for transferring money and expertise from multinational companies to local enterprises. Emerging markets also need FDI to help finance infrastructure deficits.</p>
<p>President Ramaphosa was cognisant of this when, as the deputy head of the National Planning Commission (NPC), he oversaw the formulation of the National Development Plan (NDP) 2030, published in 2012. The NDP aimed for total fixed investment to rise from below 20% of GDP at the start of the current decade to 30% of GDP by 2030.</p>
<p>The NDP also planned for public sector investment to account for 10% of GDP by 2030. In 2017, total fixed investment was recorded at 19% of GDP, with around 80% of the investment coming from the private sector.9</p>
<p>In other words, both the overall investment target as well as the public investment target have not been met.</p>
<p>This is indicative of the fact that the South African economy needs significant investment stimulus.</p>
<p>Outcomes of the Investment Conference<br />
The key sectors targeted by the summit were:<br />
• Agriculture and agro-processing;<br />
• Mining and minerals beneficiation;<br />
Heavy manufacturing;<br />
• Water and transport infrastructure;<br />
• Energy;<br />
• Information, communication and technology;<br />
• Manufacturing;<br />
• Tourism, business process outsourcing, and film; and<br />
• Venture capital.<br />
During his final address to the summit, President Ramaphosa declared that during the course of the day “nearly R290 billion” had been pledged by both local and international companies seeking to participate in the President’s five-year plan.</p>
<p>Unemployment remains one of government’s core concerns. In August 2018 , President Ramaphosa declared the urgency “to develop and implement a stimulus package to ignite growth that will lead to the creation of jobs, especially for young people and women”.10 To this end, some of the investment pledges also specify job creation targets, including those by Sumitomo Rubber, Anglo America and McDonald’s.</p>
<p><strong>Estimated economic impact of the promised investment</strong></p>
<p>The R284.6 billion of investment pledged is expected to support long-term economic benefits for South Africa, including stronger real GDP growth, the creation of jobs and generation of additional tax revenue.</p>
<p>We estimate the potential economic activity over the next five years<br />
resulting from this investment will include:</p>
<p>• An estimated R338 billion added to GDP;<br />
• Creating and/or sustaining an estimated 165 000 direct and indirect<br />
jobs, on average, per year; and<br />
• An estimated R59 billion added to total government revenue, through<br />
both the collection of direct and indirect taxes.</p>
<p>These estimated economic impacts are only associated with the investment spending between 2019 and 2024.</p>
<p>Long-term economic contributions will be created by the additional production in the various sectors, once the investment phase is complete.</p>
<p>We estimate some R468.8 billion in potential production from 2025 to 2035 due to linkages. Our calculations show that the above-mentioned production would potentially contribute the following impacts over a ten year period:<br />
• R505 billion added to GDP;<br />
• Creating and/or sustaining an estimated 116 000 direct and indirect<br />
jobs, on average per year; and<br />
• R133 billion added to total government revenue.</p>
<p>When considering the economic impact results for each of the sectors, we see that the sector with the largest investment does not necessarily generate the largest long-term economic contributions:<br />
• The largest investment is captured within the mining sector;<br />
• Investment in the rubber sector generates the largest GDP multiplier<br />
effect;<br />
• In terms of the jobs created and tax revenue generated through the investment, the food sector has the largest job and tax multipliers; and<br />
• The sector that generates the largest production from the investment is the transport equipment sector. This sector will also generate the most long-term economic benefit across all three performance indicators (GDP, employment and tax).</p>
<p>From our analysis, we see that the continued investment in South Africa would assist in reducing unemployment, poverty and improve people’s lives, which, in turn, would also support long-term economic growth.</p>
<p>This aligns with President Ramaphosa’s State of the Nation Address (SONA) 2018 in which he promised to use investment, among other levers, to address the country’s challenges of poverty and inequality.</p>
<p>However, this analysis is based on the assumption that all investment pledges, amounting to R284.6 billion, are translated into real investments, as the estimated economic contributions will be proportionate to the investment made. The challenge for South Africa is to ensure that the already-listed factors that influence investment are<br />
addressed. Investment pledges will only translate into actual investments if a supportive business environment, policy certainty and political stability are in place. These too were pledges of SONA 2018.</p>
<p>The well-attended Investment Summit was a showcase of South Africa’s attributes, and a place of conversation about how the country had progressed over the preceding eight months on the policy and political front. The R284.6 billion in investment pledges assessed here are testament to the perceived improvement in the local investment climate and the optimism around South Africa heading into 2019.</p>
<p>Provided by PWC</p>


Estimating the potential economic impact of investment pledges made at the South Africa Investment Conference

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<p>Global Entrepreneurship Week has come to an end with commitments from governments and several organisation to support young African entrepreneurs as the continent seeks to bank on its biggest resource for economic growth. Joining CNBC Africa for more is Sean Henry Drake, Founder and entrepreneur at the Wealth Project.</p>


Global Entrepreneurship Week commits to support young entrepreneurs

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<p>The UK will tomorrow celebrate national mentoring day which aims to recognise and celebrate the benefits of mentoring. To understand the impact mentoring would have on Africa’s economic growth, CNBC Africa is joined by Ineza Mireiile Karera, CEO of Kora Coaching Group.</p>


Understanding the impact of mentoring on Africa’s economic growth

<h6>By <span class="fn author-name"><a href="https://theconversation.com/profiles/melba-k-wasunna-441896" rel="author">Melba K. Wasunna</a>,</span> <em><a href="http://theconversation.com/institutions/strathmore-university-2081">Strathmore University </a></em></h6>
<p>&nbsp;</p>
<p>Six years ago, Kenya <a href="https://theconversation.com/oil-discoveries-in-turkana-six-years-ago-havent-delivered-benefits-for-women-100101">discovered</a> commercially viable oil deposits in the Turkana region. The find is <a href="http://www.coastweek.com/3628-latest-news-kenya-oil-finds-improve-economy.htm">expected</a> to boost economic growth as about <a href="https://www.tullowoil.com/operations/east-africa/kenya">560 million barrels</a> of oil are expected to be recovered from the South Lokichar Basin. Commercial oil production <a href="https://www.tullowoil.com/operations/east-africa/kenya">is expected</a> in about three to four years.</p>
<p>But not all Kenyans are happy. Earlier this year, as road transfers of oil to Mombasa <a href="https://www.tullowoil.com/operations/east-africa/kenya">started</a> under the ‘early oil pilot scheme’, the operations faced <a href="https://www.the-star.co.ke/news/2018/06/27/no-oil-will-leave-turkana-without-security-and-jobs-protesters-say_c1778927">opposition</a> from local communities in Turkana. As a historically underdeveloped part of Kenya, the find was <a href="https://www.standardmedia.co.ke/business/article/2001234391/lokichar-oil-a-blessing-or-curse-for-turkana">expected</a> to bring great benefits to the Turkana people. But they have largely been excluded and are demanding jobs, business opportunities, security and a share of oil proceeds.</p>
<p>Some Kenyans and businesses <a href="https://theconversation.com/oil-discoveries-in-turkana-six-years-ago-havent-delivered-benefits-for-women-100101">have</a> gained employment or business contracts, but it’s not enough. British oil exploration company, Tullow Oil, the first to discover oil in Kenya, has <a href="https://www.tullowoil.com/operations/east-africa/kenya">a history</a> of discovering significant oil resources in East Africa. By the end of 2017, 30% of the company’s supplier spend was with <a href="https://www.tullowoil.com/Media/docs/default-source/3_investors/tullow-oil-plc-2017-annual-report.pdf?sfvrsn=2">Kenyan businesses</a>, down from 33% in 2016. The bulk goes to foreign companies. Though Tullow Oil does work with some Kenyan firms – like Kapese Transporters and Lopii Contractors – the company has <a href="https://www.tullowoil.com/Media/docs/default-source/3_investors/tullow-oil-plc-2017-annual-report.pdf?sfvrsn=2">slowed down</a> on contracting local suppliers.</p>
<p>It is crucial that Kenya figures out how to encourage <a href="https://www.lexology.com/library/detail.aspx?g=87a225c8-cb72-47d2-929c-6c8ab8324383">the participation of Kenyans</a> in the oil sector through the use of local labour, goods and services. This was the topic at a <a href="http://www.extractives-baraza.com/assets/content/PDF/epwg/Kenya-Extractives-Policy-Dialogues-2-Local-Content-Discussion-Paper.pdf">recent forum</a> hosted by the <a href="https://www.extractives-baraza.com/">Extractives Baraza</a> – an information centre for the extractives sector based at Strathmore University – in Nairobi.</p>
<p>Major constraints that prevent Kenyans – particularly communities around the oilfields – from benefiting from the oil sector include: a <a href="https://www.giz.de/de/downloads/E4D_SOGA_Brochure-Web-high_resolution.pdf">lack of</a> specialised training or technical skills, <a href="https://www.extractiveshub.org/servefile/getFile/id/4209">a lack of</a> access to credit which would increase the competitiveness of small-to-medium businesses, low quality of local goods and services and a <a href="https://www.standardmedia.co.ke/article/2000207205/no-road-no-oil-turkana-leaders-threaten">lack of modern roads and highways</a> to link the Turkana region with other parts of the country.</p>
<h2>The challenges</h2>
<p>In terms of human capital, Kenya <a href="http://www3.weforum.org/docs/WEF_Global_Human_Capital_Report_2017.pdf">ranks poorly</a> in the development of future skills (101 out of 130 countries according to the World Economic Forum) and in the use of specialised skills at work (74 of 130).</p>
<p>Tullow Oil <a href="https://www.tullowoil.com/Media/docs/default-source/3_investors/tullow-oil-plc-2017-annual-report.pdf?sfvrsn=2">cited this</a> burgeoning skills gap as the main reason for not including more locals in its workforce. This challenge is most <a href="https://theconversation.com/kenya-has-a-massive-skills-gap-how-it-can-fix-the-problem-91170">severe for technical and vocational skills </a> like welding, drilling, repair of heavy equipment and <a href="https://www.the-star.co.ke/news/2018/05/31/tullow-picks-uk-firm-for-key-oil-pipeline-job_c1765859">pipeline design</a>– all in <a href="http://www.lundinfoundation.org/education-and-skills-training">demand</a> in the oil sector.</p>
<p>But human capital isn’t the only problem. <a href="https://set.odi.org/wp-content/uploads/2016/09/Manufacturing-in-Kenya-Anzetse-Were.pdf">The low quality</a> of locally manufactured or available goods and services, compared to their high costs, has <a href="http://kam.co.ke/sme-development/">allowed</a> imported products to take over a large market share in Kenya. This could be attributed to a <a href="https://www.businessdailyafrica.com/analysis/Why-we-need-local-content-policy-now/539548-2754394-doyou4z/index.html">lack of understanding</a> as to what the oil sector needs in comparison to what is locally available. Local manufacturers also <a href="http://kam.co.ke/sme-development/">use obsolete technology</a> and there’s a low level of innovation.</p>
<p>A final, big challenge is the <a href="https://www.dentons.com/en/insights/alerts/2015/february/24/local-content-in-kenyas-oil-and-gas-industry">lack</a> of a robust legal framework to promote local participation. For instance, the <a href="http://www.kenyalaw.org/lex//actview.xql?actid=CAP.%20308">Petroleum (Exploration and Production) Act 1986</a> includes an obligation for contractors to give preference to locally available goods and services, and that Kenyan nationals be prioritised in employment and training. But the Act doesn’t provide for targets, outlining how much local representation is needed. It also doesn’t provide for monitoring or reporting.</p>
<h2>The way forward</h2>
<p>There needs to be a clear strategy to ensure <a href="http://www.extractives-baraza.com/assets/content/PDF/epwg/Kenya-Extractives-Policy-Dialogues-2-Local-Content-Discussion-Paper.pdf">local participation</a> in the oil sector.</p>
<p>To start with, the entire oil value chain must be assessed to identify which areas need to be focused on. This will reveal the size and capacity of local businesses, the capabilities of the local workforce, level of participation, and supplier landscape.</p>
<p>Skills need to be developed and there must be a requirement for investors to publicly certify that a local expert is not available before importing skills.</p>
<p>Local manufacturers must adopt modern technology and innovative solutions to produce products that align with the quality of goods and services needed in the sector.</p>
<p>Partnerships between the private sector, government (national and county) and academia are critical to bridge the knowledge gap. This will create awareness, ensure that training curricula and facilities are fit-for-purpose, and pool available skills and expertise.</p>
<p>Joint ventures between international companies and local companies are also critical for building links and transferring technology and skills.</p>
<p>Finally, the government must offer legal protection against unfair contractual arrangements, and guarantee recovery of delayed payments for local businesses. It should create a level playing field for local businesses to participate, for instance; by simplifying and fast-tracking business registration processes and ensuring equal access to project information for local businesses. Norway, for example, <a href="http://ella.practicalaction.org/wp-content/uploads/2016/07/20160526-Grupo-Faro-Local-Content-Frameworks-in-Latin-America.pdf">included</a> a requirement for oil companies to split up supply contracts into smaller parts suitable for local companies.</p>
<p><em>James Ombaki Kirwa, a Legal Researcher at Strathmore Extractives Industry Centre, contributed to this article</em><img loading="lazy" decoding="async" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/103789/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p>
<p><a href="https://theconversation.com/profiles/melba-k-wasunna-441896">Melba K. Wasunna</a>, Director and Lecturer, Extractives Baraza, <em><a href="http://theconversation.com/institutions/strathmore-university-2081">Strathmore University</a></em></p>
<p>This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/what-kenya-can-do-to-ensure-local-people-benefit-from-its-oil-industry-103789">original article</a>.</p>

What this East African needs to do to ensure oil industry benefits for its citizens

<figure><img decoding="async" src="https://images.theconversation.com/files/238156/original/file-20180926-48631-rvjpem.jpg?ixlib=rb-1.1.0&amp;q=45&amp;auto=format&amp;w=754&amp;fit=clip" alt="File 20180926 48631 rvjpem.jpg?ixlib=rb 1.1" /><figcaption>Nigeria needs to review existing structures to drive growth.<br />
<span class="attribution"><span class="source">xtock/Shutterstock</p>
<p></span></span></figcaption></figure>
<p>By <a href="https://theconversation.com/profiles/ohio-omiunu-514053">Ohio Omiunu</a>, Senior Lecturer in Law, <em><a href="http://theconversation.com/institutions/de-montfort-university-1254">De Montfort University</a></em></p>
<p>There have been sustained efforts to diversify Nigeria’s economy since the country returned to democratic civilian rule in 1999. Successive governments have made foreign direct investment a priority to achieve this aim.</p>
<p>Originally, the organised private sector was intended as the primary driver of investment-led economic reforms. But, in the process, the policy space was inadvertently opened up for state governments. Nigeria has three constitutionally recognised <a href="http://www1.worldbank.org/publicsector/decentralization/march2003seminar/fiscalfedreport.pdf">levels of government</a>. These are the federal government, 36 state governments and 774 local governments. Each level of government has defined powers under the constitution. States are not meant to engage in foreign economic relations.</p>
<p>However, successive economic reforms have given impetus to Nigerian states to grow in stature as gatekeepers to foreign direct investment. It’s now common to hear of states introducing specialised agencies to facilitate and coordinate investment inflows. Examples include the <a href="http://kadipa.kdsg.gov.ng/">Kaduna State Investment Promotion Agency</a>, the <a href="http://www.lagosglobal.org/">Lagos Office of Overseas Affairs and Investment</a> and the <a href="https://www.ansippa.ng/who-we-are/">Anambra State Investment Promotion and Protection Agency</a>.</p>
<p>Some states have also floated development focused corporate entities in which they have controlling stakes. A recent example is the <a href="http://dawncommission.org/whatWeAre.php">Development Agenda for Western Nigeria Commission</a>. This was set up by the six state governments in Nigeria’s South-West. They are pursuing a regional economic integration strategy.</p>
<p>All these initiatives invariably lead to foreign entities including diplomatic envoys, multinational companies and international organisations getting directly involved at state level.</p>
<p>The emerging practice is an interesting example of bottom-up economic development. However, the current state of affairs isn’t optimal. This is because having states all pursuing separate deals and arrangements makes central coordination problematic. If coordination is weak, there’s the potential for unnecessary duplication of processes and institutions. This in turn would have a knock-on effect on the ease of doing business in Nigeria.</p>
<p>There are also constitutional questions over the legality of agreements which Nigeria’s state governments have signed with foreign entities. If left unchecked, these could expose the Nigerian state to legal claims by foreign investors. And there’s a question mark over the constitutional status of states opening foreign offices, as <a href="https://allafrica.com/stories/201406271083.html">Bayelsa state</a> did in 2013. On the face of it, this was unconstitutional. States in Nigeria don’t have constitutional powers to operate quasi-diplomatic offices.</p>
<p>The trend of decentralised economic development has striking similarities with how things worked in the <a href="http://countrystudies.us/nigeria/68.htm">first Nigerian Republic</a>, from 1960 to 1966. Regional governments in this era had constitutional authority to participate in Nigeria’s foreign economic engagements.</p>
<p>An example was the control of commodity boards by states (then regions). Surplus from levies imposed on export commodities was a vital source of funds for economic development in the respective regions.</p>
<p>Given this history it’s not surprising that states today are keen to take control of foreign investment inflows to fund their economic development objectives.</p>
<h2>Why action is needed</h2>
<p>No constitutional disputes have been raised between the federal government and the states. This can be taken as tacit acceptance of these emerging practices by states. Alternatively, the federal government prefers to deal with any fall-out on an ad hoc basis. This would make sense, given the benefits that can accrue from the arrangements.</p>
<p>But those responsible for Nigeria’s economic development policy coordination need to wake up to the changing realities of the times. Other federal systems have been proactive in restructuring the cooperation mechanisms for foreign relations. These include the US, Canada, Belgium, Argentina, Austria, and Germany.</p>
<p>These countries have recognised the need to adjust their existing regime to catch up with an emerging reality about sub-national governments – like states. These groupings are critical stakeholders in the 21st-century global economy.</p>
<p>In Nigeria, meanwhile, there’s little evidence that states going abroad is viewed as a matter of urgency. It’s time it was.</p>
<h2>Time to review</h2>
<p>The emergence of states as gatekeepers of Nigeria’s investment-led economic reforms demonstrates the dynamic nature of federalism. States have already carved out the autonomy they need to determine the pace of their economic development. And they have done so with no formal constitutional changes.</p>
<p>Now the federal government must realise that it’s no longer the sole determinant of Nigeria’s foreign economic policy. It would be both impossible and undesirable to try and reverse the trend.</p>
<p>Instead, there’s an urgent need to review existing arrangements for cooperation. These reviews must happen at the constitutional and institutional levels. The aim should be to maximise the benefits of the drive and impetus that states are bringing to the Nigerian economic reform agenda.</p>
<p>Nigeria stands to benefit immensely if states drive economic development. But effective coordination is critical.<img loading="lazy" decoding="async" style="border: none !important; box-shadow: none !important; margin: 0 !important; max-height: 1px !important; max-width: 1px !important; min-height: 1px !important; min-width: 1px !important; opacity: 0 !important; outline: none !important; padding: 0 !important; text-shadow: none !important;" src="https://counter.theconversation.com/content/103269/count.gif?distributor=republish-lightbox-basic" alt="The Conversation" width="1" height="1" /></p>
<p><a href="https://theconversation.com/profiles/ohio-omiunu-514053">Ohio Omiunu</a>, Senior Lecturer in Law, <em><a href="http://theconversation.com/institutions/de-montfort-university-1254">De Montfort University</a></em></p>
<p>This article is republished from <a href="http://theconversation.com">The Conversation</a> under a Creative Commons license. Read the <a href="https://theconversation.com/nigeria-must-wake-up-to-the-changing-role-of-state-governments-103269">original article</a>.</p>

Why Nigeria should evaluate existing structures in order to drive economic growth

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<p>Sam Ocheho, President of the Financial Markets Dealers Association says the financial market plays a vital role in any economy as it unlocks the capital for economic growth.<br />
He discussed the role of the Nigerian financial markets as a catalyst for economic growth with CNBC Africa’s Wole Famurewa on the side-lines of the Financial Markets Conference.</p>


FMDA President on importance of financial markets to Nigeria’s economy

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<p>South African President Cyril Ramaphosa announced the specifics of the government’s stimulus package in hopes of showing immediate growth in the local economy. CNBC Africa&#8217;s Karabo Letlhatlha spoke to Nedbank Economist, Dennis Dykes.</p>


SA business reacts to president Ramaphosa’s economic rescue plan

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<p>South African President Cyril Ramaphosa announced the specifics of the government’s stimulus package in hopes of showing immediate growth in the local economy. On agricultural stimulation, CNBC Africa&#8217;s Karabo Letlhatlha spoke to the Minister of Economic Development Ebrahim Patel.</p>


Minister Patel speaks on the cost of state capture, corruption to economic growth

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<p>Public Enterprises Minister Pravin Gordhan speaks to CNBC Africa’s Karabo Letlhatlha about the state of SOEs and the impact of state capture on South Africa’s recession.</p>


Pravin Gordhan on turning around State Owned Enterprises, economic stimulus

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<p>South African Finance Minister Nhlanhla Nene gives more details about the #stimuluspackage unveiled by President Cyril Ramaphosa as part of measures to get the country out recession.</p>


SA FinMin Nene sheds more light on the #stimuluspackage

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<p>In its report titled ‘Doomsday Prophecy’ HSBC Bank says Nigeria’s economic growth will be stunted if the country’s President Muhammadu Buhari is re-elected into office in 2019. In a counter response, Nigeria&#8217;s Presidency accused HSBC of suspected involvement in the laundering of proceeds of corruption involving more than 50 other Nigerians. Chamberlain Peterside, Managing Director and Chief Executive Officer of Xcellon Capital Advisors joins CNBC Africa to analyse these and Nigeria&#8217;s election risk.</p>


Reviewing HSBC’s prediction on Buhari’s re-election

<p>NAIROBI (Reuters) &#8211; Kenya’s economic growth momentum for this year could be snuffed out if a widely unpopular 16 percent Value Added Tax on fuel is maintained, the country’s chamber of commerce said on Friday, pointing at higher prices of goods and transport.</p>
<p>The tax, which came into force on Sept. 1, is part of a government bid to boost revenue collection in order to narrow its fiscal deficit and secure an extension of a standby credit facility from the International Monetary Fund.</p>
<p>The High Court on Thursday ordered a temporary suspension of the tax, but prices at petrol stations visited by Reuters on Friday had not come back down.</p>
<p>“We are asking the government to re-think its options for financing its development and recurrent expenditure instead of overtaxing various products that already bear large tax burdens,” the Kenya National Chamber of Commerce and Industry (KNCCI) said in a statement.</p>
<p>The Treasury could not immediately be reached for comment.</p>
<p>The finance ministry expects economic growth to rebound to 5.8 percent this year after drought, jitters over a presidential election and sluggish private sector credit growth cut last year’s growth to 4.9 percent.</p>
<p>“The recent resurgence of the economy will be negatively impacted by this move and this will reverse any growth we have seen in the past year,” KNCCI said.</p>
<p>The new VAT on fuel sent the retail price of petrol up by 12 percent per litre. Transport operators have also raised their charges and some petrol dealers have gone on strike to protest against the new tax, causing fuel shortages. The tax was originally included in a law passed in 2013, but was postponed several times, amid protests about its impact.</p>
<p>The revenue authority introduced the tax on Saturday but President Uhuru Kenyatta could still reverse it by signing a bill postponing it again.</p>
<p>Justin Muturi, the speaker of the national assembly, told Reuters on Friday the legislature was consulting with the finance ministry to find a way forward on the tax.</p>
<p>Kenyan businesses and ordinary people routinely complain of a heavy tax burden. The chamber of commerce said the government could widen the tax base and increase the rate of tax compliance to 50 percent from the current 17 percent.</p>
<p>It also urged the government to cut expenditure, reduce wastage of public funds and deal with corruption, which some past studies have found account for the loss of up to a third of the government’s annual budget.</p>
<p>Editing by Ingrid Melander; Editing by Peter Graff</p>


The new tax on fuel could dampen this East African country’s economic growth

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<p>Despite the fact that the agricultural sector contributed immensely to Rwanda’s double digit economic growth, the sector continues to be starved of credit by commercial financial institutions. CNBC Africa spoke to Maurice Toroitich, chairman of the Rwanda Bankers Association on what needs to be done for this sector to generate an appetite for financing. The conversation started off by getting his reactions on the just announced Financial Stability Statement by the central bank governor.</p>


Rwanda Bankers Association react to the financial stability statement

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<p>With a majority of African nations diversifying from traditional sources of income, entrepreneurship is increasingly seen as a key to economic growth; Sean Drake, Founder and Entrepreneur of The Wealth Project joins CNBC Africa with seven secrets of what it takes for an entrepreneur to turn a business idea into reality.</p>


Business success secrets of entrepreneurs you need to know

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<p>The African sovereign wealth fund index was launched recently highlighting possibilities of redesigning and refocusing the funds to solve Africa’s financing gap and accelerate economic growth.</p>


economic growth

South Africa’s economic recovery plans fading: IMF

How Nigeria is positioning for economic growth – Yemi Dipeolu

Estimating the potential economic impact of investment pledges made at the South Africa Investment Conference

Global Entrepreneurship Week commits to support young entrepreneurs

Understanding the impact of mentoring on Africa’s economic growth

What this East African needs to do to ensure oil industry benefits for its citizens

Why Nigeria should evaluate existing structures in order to drive economic growth

FMDA President on importance of financial markets to Nigeria’s economy

SA business reacts to president Ramaphosa’s economic rescue plan

Minister Patel speaks on the cost of state capture, corruption to economic growth

Pravin Gordhan on turning around State Owned Enterprises, economic stimulus

SA FinMin Nene sheds more light on the #stimuluspackage

Reviewing HSBC’s prediction on Buhari’s re-election

The new tax on fuel could dampen this East African country’s economic growth

Rwanda Bankers Association react to the financial stability statement

Business success secrets of entrepreneurs you need to know

African sovereign wealth fund explained: How does it actually work?

News Tips

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economic growth

South Africa’s economic recovery plans fading: IMF

How Nigeria is positioning for economic growth – Yemi Dipeolu

Estimating the potential economic impact of investment pledges made at the South Africa Investment Conference

Global Entrepreneurship Week commits to support young entrepreneurs

Understanding the impact of mentoring on Africa’s economic growth

What this East African needs to do to ensure oil industry benefits for its citizens

Why Nigeria should evaluate existing structures in order to drive economic growth

FMDA President on importance of financial markets to Nigeria’s economy

SA business reacts to president Ramaphosa’s economic rescue plan

Minister Patel speaks on the cost of state capture, corruption to economic growth

Pravin Gordhan on turning around State Owned Enterprises, economic stimulus

SA FinMin Nene sheds more light on the #stimuluspackage

Reviewing HSBC’s prediction on Buhari’s re-election

The new tax on fuel could dampen this East African country’s economic growth

Rwanda Bankers Association react to the financial stability statement

Business success secrets of entrepreneurs you need to know

African sovereign wealth fund explained: How does it actually work?

News Tips

Advertise With Us

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