JOHANNESBURG (Reuters) &#8211; South African President Cyril Ramaphosa’s multi-billion dollar plan to turnaround the economy will do little to lift the country’s sluggish economic growth rate, ratings agency Fitch said on Tuesday.
“South Africa’s latest economic plan is unlikely to deliver a significant boost to economic growth,” said Fitch, which rates Pretoria’s foreign and local currency debt at subinvestment, adding that rand’s recent plunge would also hinder the plan.
“The plan does include measures that could support growth, but many relate to long-standing policy ideas that have been slow to implement,” Fitch said of the plan announced by Ramaphosa on Friday to pull the economy out of recession.
Reporting by Mfuneko Toyana; Editing by Ed Stoddard

Fitch_Flickr

Why Fitch thinks South Africa’s #StimulusPackage is unlikely to boost growth in the country’s economy

JOHANNESBURG (Reuters) &#8211; South Africa’s headline consumer inflation slowed to 4.9 percent year-on-year in August from 5.1 percent in July, data from Statistics South Africa showed on Wednesday.
On a month-on-month basis, inflation contracted 0.1 percent in August after rising from 0.8 percent in July.
Core inflation, which excludes the prices of food, non-alcoholic beverages, petrol and energy, fell to 4.2 percent year-on-year in August from 4.3 percent in July, while on a month-on-month basis was flat at 0.0 percent from 0.6 percent.
Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia

SA’s headline consumer inflation slowed to 4.9 percent year-on-year in August, what you need to know…

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Rwanda’s economy grew by 6.7 per cent in the second quarter of 2018 with Gross Domestic Product at current market prices estimated at $2,268 billion, up from $2,119 billion in the second quarter of 2017. According to the National Institute of Statistics of Rwanda the positive growth was a result of growth in all the three key sectors of the economy. Joining CNBC Africa for a thorough breakdown is Ivan Murenzi, Deputy Director General of the Statistics office.

Rwanda’s economy grows by 6.7% in second-quarter

JOHANNESBURG (Reuters) &#8211; South Africa’s President Cyril Ramaphosa said on Monday there would be no mass layoffs of public sector workers as his government considers various ways to pull the economy out of a recession that has rattled the rand and investor confidence.
The economy slipped into recession in the second quarter for the first time since 2009, data showed in August, a stinging blow to Ramaphosa’s pledge to revive the economy and reduce record-high unemployment after a decade of stagnation.
In June, the National Treasury said it was considering layoffs and early retirement packages for staff in the public sector to avoid breaking its pledge to cut spending after unions clinched above-inflation wage increases.
“The mass retrenchment of public sector workers is not under consideration,” Ramaphosa said at trade union federation Cosatu’s electoral conference in Johannesburg.
“The context of slow economic growth and weak revenue collection means that expenditure on other critical things will suffer &#8230; but we need to address this in a way that does not put the livelihoods of public sector workers at risk.”
The contraction in the economy sent the rand tumbling and triggered warnings from ratings agency Moody’s that the country would struggle to increase revenue and deliver on a promise to cut spending and public debt.
South Africa needs faster economic growth to reduce its 27 percent unemployment rate and alleviate poverty and inequality, both of which stoke instability.
The ruling African National Congress has made repeated pledges to improve the economy. Unemployment is a key concern for voters ahead of elections next year.
Reporting by Mfuneko Toyana; Editing by James Macharia

Is South Africa planning mass layoffs in the public sector to deal with recession? Here’s what president Ramaphosa has to say…

JOHANNESBURG (Reuters) &#8211; Moody’s stable outlook on South Africa’s credit rating means there is little chance of a downgrade this year, the ratings agency said on Thursday, but warned that a commitment to fiscal consolidation would be key to maintaining its rating.
The agency, the last of the top three ratings firms to have Pretoria’s long-term foreign-currency debt in investment grade, however said a recovery in South Africa’s economic growth will be slow and less than the Treasury’s estimate of 1.5 percent for 2018 after a surprise contraction in the first two quarters.
South Africa entered recession for the first time since 2009, data showed last week, undermining President Cyril Ramaphosa’s efforts to revive the economy after years of stagnation under former president Jacob Zuma.
Lucie Villa, Moody’s lead analyst for South Africa, said the rising share of government revenue that South Africa spends on debt servicing was a concern for Moody’s, but that she expected some fiscal adjustment in the October budget statement.
“Growth is going to be below 1 percent, to what extent it’s difficult to say,” Villa told the agency’s annual Sub-Saharan Africa conference, referring to this calendar year.
“South Africa has a stable outlook, &#8230; there is little chance of a rating action,” Villa said, in response to a question about whether Moody’s would downgrade the country’s sovereign rating at a review scheduled for next month.
Moody’s has previously said the slide into recession would exacerbate fiscal and monetary challenges. It said weaker-than-expected economic data was “credit negative”.
Villa said two ratings strengths for South Africa was that its government debt had a long maturity and that relatively little of the debt was foreign-currency denominated.
“It’s very important what announcement will be made (at the October budget statement), &#8230; what we think is going to be critical is the wage bill, tax revenues,” she said.
Villa said plans by the ruling African National Congress (ANC) to nationalise the Reserve Bank were not “rating-relevant,” assuming that the bank’s mandate would not be affected.
The central bank has said any change of ownership would not affect its mandate or independence.
Africa’s most developed economy needs faster economic growth if it is to reduce high unemployment &#8211; currently at 27 percent &#8211; and alleviate poverty, analysts say.
Unemployment is a hot-button issue ahead of national elections in 2019, and the ANC has made repeated pledges that things will improve.
($1 = 14.8287 rand)
Writing by James Macharia

What are the chances of a downgrade for South Africa’s credit rating? Here’s what Moody’s has to say…

By <a href="https://www.brookings.edu/experts/landry-signe/">Professor Landry Signé</a>, David M. Rubenstein Fellow in the Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution and <a href="https://www.brookings.edu/author/chido-munyati/">Chido Munyati</a>, Global Leadership Fellow, World Economic Forum.
&nbsp;
This July, Zimbabwe held its first post-Robert Mugabe era presidential election, nearly four decades after his accession to power. The ruling ZANU-PF party won the 69 percent of the 210 seats in parliament after winning rural voters by large margins. In the presidential vote, Emmerson Mnangagwa, the ZANU-PF party candidate and the incumbent president, emerged victorious from a 23-candidate field, winning 50.8 percent of the vote. The main opposition, the MDC Alliance, challenged the election results, and today the constitutional court upheld the outcome.
Free, fair, and credible elections are preconditions for sustainable peace and democratic development, as well as for attracting new investment and other support from international financial institutions and foreign governments. While most election observers have acknowledged improvements in this election, they have not considered them sufficient. They highlighted “inclusive participation rights and a peaceful vote” but also noted a “lack of trust in the process.” Two U.S. based groups, the International Republican Institute and the National Democratic Institute, highlighted “numerous incidents of food and agricultural assistance and extreme media bias” in favor of President Mnangagwa. The Southern African Development Community largely considered the election successful, noting that people had the “opportunity to exercise their constitutional right.”
Support for democracy is strong in Zimbabwe. According to the latest Afrobarometer Survey, 75.2 percent of people “prefer democracy” and an additional 4.7 percent “sometimes prefer democracy.” Additionally, 78.5 percent of citizens think that they should choose leaders in their country through regular, open, and honest elections. Finally, 67.8 percent of people believe that the constitution should limit the president to serving a maximum of two terms in office.
Zimbabwe seems to be regaining the trust of international investors and foreign governments. The country has attracted an estimated $16 billion in investments since Emmerson Mnangagwa took over in November 2017. Development partners are also collaborating again. The Indian government will provide a $310 million soft loan for the rehabilitation of the Hwange Thermal Power station and the CDC and Standard Chartered will provide $100 million in lending to new businesses.
Despite these advancements, there is still a lot to do to bring the country back to sustainable development:
IMPROVE GOVERNANCE TO REPEAL INTERNATIONAL ECONOMIC SANCTIONS, ADDRESS INTERNATIONAL DEBT, AND DELIVER BETTER PUBLIC SERVICES 
Recently, the U.S. government renewed the Zimbabwe Democracy and Economic Recovery Act (ZIDERA), which requires that the country make credible progress towards holding free and fair elections, restore the rule of law, and ensure military subordination to the civilian government. The Government of Zimbabwe needs to increase accountability and accountable governance, and convince the U.S. government to repeal ZIDERA. With the sanctions bill in place, Zimbabwe cannot access loans or guarantees from international financial institutions without the approval of the U.S. government.
The renewed legislation also requires that U.S. representatives at multilateral organizations not support any efforts to address Zimbabwe’s debt situation. As of February 2018, Zimbabwe still had debts of $1.15 billion at the World Bank, $601 million to the African Development Bank, and $3 billion to Paris Club countries.
The government needs to re-engage diplomatically to get the sanctions lifted as they restrict business, its ability to borrow from international organizations, and resolve its debt situation. Zimbabwean officials continue to look to engage U.S. officials with the Foreign Affairs and International Trade Minister, Dr. Sibusiso Moyo, telling reporters that “we are determined to continue in the re-engagement with the U.S. administration, as we together seek to restore our bilateral relations to normalcy.” In order to regain access to international capital markets Zimbabwe must repay its debt arrears to major foreign lenders.
Other necessary reforms include repealing the chilling media laws—including the Access to Information and Protection of Privacy Act (AIPPA) and the Public Order and Security Act (POSA)—which restrict the media environment and promotes self-censorship. Additionally, the government must align current laws with the constitution.
IMPROVING THE MACROECONOMIC CONTEXT AND POLICY DELIVERY
Resolve the chronic cash shortage in the short-term, and create its own currency in the long-term 
Addressing the cash shortages must be a priority for the government. Zimbabwe desperately needs an influx of foreign cash to resolve the currency crises and spur economic growth. The country has not had a currency of its own since it dollarized in 2009 because of hyperinflation.
In the long term, Zimbabwe needs to have its own currency. In 2016, the Reserve Bank introduced “bond notes”, a substitute currency that locally has the same value as the U.S. dollar. Bond notes were meant to alleviate the shortage of U.S. dollars in the system—this, however, had the opposite effect by further increasing the demand for U.S. dollar.
Implement economic and civil reforms domestically 
As highlighted earlier, President Mnangagwa has attracted significant new investment to Zimbabwe since last year. However, the country continues to face chronic cash shortages that are holding back economic growth. In recent months, businesses raised prices as they struggled to find U.S. dollars to conduct business.
Beyond reforms, President Mnangagwa can send positive signals to foreign lenders and investors by tackling corruption, and appointing reputable and accountable technocrats to manage the economy. Indeed, the window of opportunity has narrowed considerably since the post-election violence that followed a peaceful vote. President Mnangagwa said there would be an independent investigation into the post-election violence. Some hope and goodwill remains; however, actions taken in the next few months will determine whether Zimbabwe is breaking with the past.
By <a href="https://www.brookings.edu/experts/landry-signe/">Professor Landry Signé</a>, David M. Rubenstein Fellow in the Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution, distinguished fellow at Stanford University’s Center for African Studies, World Economic Forum Young Global Leader, and author of “Innovating Development Strategies in Africa: The Role of International, Regional and National Actors,
and <a href="https://www.brookings.edu/author/chido-munyati/">Chido Munyati</a>, Global Leadership Fellow, World Economic Forum.

OpEd: Is Zimbabwe regaining the trust of international investors?

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Considering the role small and medium enterprise to the economy, Ayodele Olojede, Head of Emerging Business at Diamond Bank joins CNBC Africa to discuss how entrepreneurs can acquire the relevant skills to run their businesses effectively and raise funding from corporates.

How entrepreneurs can acquire skills to run their businesses effectively

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.
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.
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.
“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.
The Treasury could not immediately be reached for comment.
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.
“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.
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.
The revenue authority introduced the tax on Saturday but President Uhuru Kenyatta could still reverse it by signing a bill postponing it again.
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.
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.
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.
Editing by Ingrid Melander; Editing by Peter Graff

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

JOHANNESBURG/PRETORIA (Reuters) &#8211; South Africa will soon recover from recession, President Cyril Ramaphosa said on Thursday in his first reaction to news that undermines his effort to revive the economy and attract investment after a decade of stagnation.
Ramaphosa staked his reputation on economic revival when he took over in February from Jacob Zuma, whose tenure was plagued by scandal, and investors welcomed his accession to power in part due to his strong ties to the business community.
Ratings agency Moody’s said the slide into recession in the second quarter would exacerbate fiscal and monetary challenges. It said weaker-than-expected economic data was “credit negative”.
Data on Thursday showed the current account deficit narrowed to 3.3 percent of gross domestic product in the second quarter, from a revised 4.6 percent in the first quarter. The rand extended its gains to more than 1 percent stronger on the news.
The deficit figure was slightly smaller than the 3.4 percent deficit analysts polled by Reuters had expected, a much-needed boost for after data this week showed the economy slipped into recession for the first time since 2009.
In his first comments on the recession, Ramaphosa said the setbacks were temporary.
“All these things that are happening now are transitional issues that are going to pass,” Ramaphosa was quoted by local news agency Eyewitness News as saying.
“I will be meeting with the business community soon, so that we rally everyone together and pull our country out of the situation that we are in,” added Ramaphosa, who was attending a China-Africa summit in Beijing when the data was released.
South Africa needs faster economic growth to reduce its 27 percent unemployment rate and alleviate poverty and inequality, both of which stoke instability.
The ruling African National Congress (ANC) has made repeated pledges to improve the economy. Unemployment is a key concern for voters ahead of elections next year.
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MOODY’S WARNING
The rand has slumped as much as 5 percent against the dollar this week and government bonds have sold off steeply, also hurt by the turmoil on Turkish and Argentinian financial markets.
“This weaker-than-expected economic performance will exacerbate fiscal and monetary challenges, a credit negative,” Moody’s said in a statement on the weaker GDP figures.
The agency is the last of the “big three” international agencies to rate South Africa’s long-term foreign-currency debt investment grade.
While releasing the current account data, the Reserve Bank, which meets on Sept. 20 to decide on interest rates, said the improved current and trade account figures were due to higher value and volume of merchandised exports.
“South Africa’s terms of trade (including gold) improved in the second quarter of 2018 as the rand price of exports, including gold, increased at a faster pace than that of imports,” the central bank said in a statement.
Several foreign banks have slashed their growth forecasts for South Africa to less than 1 percent this year.
“Moody’s has pointed out that the task of fiscal consolidation is going to get harder, but I don’t think they’ll change our credit rating yet,” said portfolio manager Wayne McCurrie at First National Bank.
“A narrow current account helps. Any good news in this environment is really good news.”
Writing by James Macharia; Editing by Matthew Mpoke Bigg

Here’s what South Africa’s president Ramaphosa has to say about the country slipping into recession

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Rwanda’s real estate sector remains key to the country’s economy. The sector contributes more than seven per cent to the national GDP, with a growth rate of 9.5 per cent annually. Joining CNBC Africa to help us understand this growth, the challenges and opportunities in this sector is Charles Haba, Managing Director, Century Real Estate Ltd.

Rwanda’s real estate remains a key economic contributor

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Millennials makes up more than a third of Africa’s 1.2 billion people and they harness the spending &#038; entrepreneurial power that could thrust Africa&#8217;s economy forward. Joining CNBC Africa is Clemens Weitz, CEO of ROAM with more on Africa’s most critical assets.

How Africa can harness the spending power of millennials

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Uganda has witnessed heightened tensions in the past few days with three Ugandan lawmakers and dozens of others critical of President Museveni being charged with treason over their alleged role in the stoning of his convoy earlier this week. So what impact is this latest development having or could have on the Ugandan economy? Gideon Badagawa, Executive Director, Private Sector Foundation of Uganda joins CNBC Africa from Uganda.

How Uganda’s political tension could affect the economy

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Rwanda’s Central Bank launched a campaign dubbed BNR Engage in an effort to enhance the knowledge of the public on issues related to the economy. Two months down the line, how far has this campaign gone? Samuel Baker, Economist, Central Bank of Rwanda joins CNBC Africa to share more details.

Rwanda’s BNR Engage campaign: Progress made so far

London, 15 August 2018 &#8212; The pace of South Africa&#8217;s fiscal consolidation will be slower than government forecasts as weaker than expected economic growth and a rising public sector wage bill act as fiscal headwinds, Moody&#8217;s Investors Service said a report today. Despite the slower pace of fiscal consolidation, medium-term deficit targets remain within reach and, if met, will support a stabilization of debt levels and reinforce Moody&#8217;s assessment of the sovereign&#8217;s fiscal and institutional strengths.
The report, &#8220;Government of South Africa: Fiscal slippages likely this year, but medium-term targets remain within reach&#8221;, is now available on www.moodys.com. Moody&#8217;s subscribers can access this report via the link at the end of this press release. The research is an update to the markets and does not constitute a rating action.
&#8220;We expect a slower pace fiscal consolidation than the Government of South Africa is forecasting,&#8221; said Lucie Villa, a Moody&#8217;s Vice President &#8212; Senior Credit Officer and co-author of the report. &#8220;Growth this year is expected to be lower than the government&#8217;s own estimates, weighing on tax revenues, while the public sector wage agreement in June also brings extra, unbudgeted costs.&#8221;
Moody&#8217;s expects a fiscal deficit of around 4.0% of GDP in 2018-19, implying a 0.4 percentage point of GDP shortfall from government targets. However, Moody&#8217;s expects the government to hit its 3.5% fiscal deficit target by 2020-21, with debt likely to stabilize at around 56% of GDP.
Moody&#8217;s expects that near-term fiscal adjustments will be made on the spending side based on the government&#8217;s record of operating within spending ceilings and undershooting revenue targets.
Improved tax collection led by the South African Revenue Service will allow revenue to take more prominence in the longer term fiscal consolidation path.
Rising interest costs in the context of investors taking a more risk averse stance towards emerging markets are a main risk to Moody&#8217;s fiscal forecasts, together with potential support to state-owned-enterprises.

South African rand dives as Moody’s warns on fiscal deficit, what you need to know…

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Nigeria’s Financial System Strategy 2020 describes the Small and Medium Scale sector as an integral part of the economy. Tochukwu Ezeuku, Investment Banker and Agriculture and SME Specialist joins CNBC Africa on the how small businesses can overcome the challenges in Nigeria.

How can small businesses overcome challenges in Nigeria?

Commerce Secretary Wilbur Ross and Sen. Chris Coons D-Del.
Source: <a href="https://www.cnbc.com/2018/08/02/china-is-pouring-money-into-in-africa-heres-why-the-us-must-compete.html">Wilbur Ross and Chris Coons: How the US can level the playing field as China pours money into Africa</a>
<ul>
<li>Africa is home to some of the world&#8217;s fastest growing economies.</li>
<li>China has seen an opportunity to both gain political influence and to reap future rewards in Africa.</li>
<li>Passage of the BUILD Act of 2018 will help America invest in these countries and compete with its Chinese rivals.</li>
</ul>
<img loading="lazy" decoding="async" src="https://cdn.cnbcafrica.com/wp-content/uploads/2018/08/02210219/105368172-1533135808476gettyimages-481868578.1910x1000.jpeg" alt="KENYA-US-OBAMA-DIPLOMACY-SUMMIT" height="1000" width="1910" data-licensor-name="Till Muellenmeister | AFP | Getty Images"/>
The Africa offers real opportunities thanks to some of the world&#8217;s fastest growing economies and an expanding labor force.
As a Cabinet Secretary and a Democratic Member of the Senate Foreign Relations Committee, respectively, we agree that the United States must do more to present our African partners with better alternatives to state-led economic models, promoted by countries like China, so Africa can assume its rightful place in the global economy.
Through efforts such as its Belt and Road Initiative, China is pursuing a neo-mercantilist vision that uses investment in infrastructure to secure an economic foothold, from which it is attempting to secure political, diplomatic, and in some cases military access, with potentially serious consequences for U.S. interests from Central Asia to Eastern Europe and Africa. China is, at the same time, bankrolling new financial organizations that aim to rival or displace the international institutions created by the United States and its allies after the Second World War.
By pouring money into Africa, China has seen an opportunity to both gain political influence and to reap future rewards in a continent whose economies are predicted to boom in the coming decades.
Just spend a few hours in a major African city – from Abidjan, to Addis Ababa, to Nairobi – and you will see the hallmarks of China&#8217;s economic presence. Over the past decade, China has either financed or contributed to financing infrastructure projects across the continent, offering billions of dollars in commercial loans at concessional rates to African governments and state-owned entities. But China&#8217;s commercial path has not always applied the highest international standards of openness, inclusivity, transparency, and governance.
The United States seeks sovereign African states that are integrated into the world economy, able to provide for their citizens&#8217; needs, and capable of managing threats to peace and security. We oppose opaque investment and development initiatives that impose undue costs and burdens on recipients, limiting their options for determining their own future.
Fragmented and outdated
As competitors like China explore opportunities to leverage state financing to pave economic inroads, U.S. government foreign investment entities remain fragmented and outdated. The Overseas Private Investment Corporation, the leading U.S. development finance institution, is unable to compete with its Chinese counterpart. Unlike Chinese institutions, OPIC works to fund private sector-led projects that will be economically sound over the long haul. Yet the agency lacks any consistent Congressional authorization and has no way of leveraging new financial tools that have drastically changed the face of the global economy.
Passage of the Better Utilization of Investments Leading to Development Act of 2018, better known as the BUILD Act, would change this unsustainable situation. This bipartisan legislation would reform and modernize government development finance by establishing the U.S. International Development Finance Corporation (IDFC).
Moreover, this legislation would allow the IDFC to more than double OPIC&#8217;s investment portfolio and allow us to participate in equity investments, provide technical assistance, and issue catalytic grants to mobilize capital for innovative projects that advance our national security and foreign policy objectives. Most importantly, the Congressional Budget Office estimates that, on net, implementing the legislation would reduce Federal costs and direct spending.
The BUILD Act also contains important reforms to reduce risks to taxpayers and ensures Congress will maintain strong oversight to make certain the agency does not provide financing where the private sector could.
By modernizing our development finance tools, the United States can send a clear message that we will continue to lead the world in supporting sound, responsible and fair economic growth, as well as sustainable and equitable business practices. This matters more than ever before as developing countries decide whether to follow a model based on free market capitalism, the rule of law and transparency, or an opaque, autocratic, state-led alternative that promotes corruption, debt, and dependency.
The BUILD Act will make a difference
Passage of the BUILD Act will make a real difference by increasing American investment in low and middle-income countries while also making a positive impact on local communities and populations. In 2017, OPIC investments supported 13,000 new jobs in host countries. With the BUILD Act, this number could grow significantly, helping to create new trading partners and therefore greater prosperity for the United States and our partners.
By planting the seeds of free market growth, the IDFC will help businesses and economies grow by supporting critical development projects in sectors such as energy, agriculture, infrastructure, and healthcare around the world.
The President&#8217;s Advisory Council on Doing Business in Africa, a 50-person strong delegation of American CEOs and senior leaders of the United States Government tasked with identifying and addressing barriers to expanding trade with African partners, recently concluded a two-week fact-finding mission to Ethiopia, Kenya, Côte d&#8217;Ivoire, and Ghana.
At each stop, the delegation heard from host governments and the private sector about the critical need for development finance reform to even the playing field for American companies. With the BUILD Act having just passed the House, and now proceeding in the Senate, we must send a loud and clear message: The United States intends to remain fully engaged in Africa and elsewhere in the developing world. The IDFC would expand America&#8217;s influence there and help support its private sector.
The BUILD Act has the support of the Trump Administration and a bipartisan coalition, including Senate Foreign Relations Committee Chairman Bob Corker, R-Tenn. and Senator Tim Kaine, D-Va. It unanimously passed the House of Representatives, with a bipartisan coalition led by Representatives Ted Yoho, R-Fla. and Adam Smith, D-Wash.
The two of us, supporters of the bill from two political parties and two branches of government now urge the Senate to act swiftly to ensure the United States maintains its historic role spearheading global economic growth and prosperity.

Commentary by Sen. Chris Coons, D-Del., and Wilbur Ross, Secretary of Commerce and a member of the Board of Directors of the Overseas Private Investment Corporation (OPIC).

Wilbur Ross and Chris Coons: How the US can level the playing field as China pours money into Africa

JOHANNESBURG (Reuters) &#8211; Nigeria’s economy is expected to grow more slowly this year than previously forecast as investors hold off before elections in early 2019, a Reuters poll showed on Friday, while Kenyan growth is forecast at more than double the pace.
In the poll taken in the past week, analysts and economists’ forecasts showed a median of 2.1 percent growth for Nigeria, accelerating to 3.0 percent next year.
That was a significant downgrade from the previous poll taken three months ago, which showed Africa’s largest economy expanding 2.6 percent this year after a lacklustre 0.8 percent in 2017.
“Upcoming elections and the associated high-wire politics already underway would instigate caution on the part of economic stakeholders,” said Rafiq Raji, chief economist at Macroafricaintel in Lagos, who expects the economy to slow in the next few quarters.
“Business and investment decisions are thus likely to be postponed till after the 2019 elections,” he added.
Nigerians vote in February. On Tuesday, 16 senators quit President Muhammadu Buhari’s ruling party and the country’s third most senior politician said he might follow suit, in a blow to the leader who is seeking re-election next year.
This comes at a tough time for the economy. Growth slowed in the first quarter of 2018 for the first time since the country pulled out of recession last year as the non-oil sector struggled.
Fellow heavyweight South Africa also suffered its worst quarterly contraction in nine years, in a reminder to investors of the huge challenge President Cyril Ramaphosa faces to deliver long term economic growth.
A separate survey earlier this month showed South African GDP is expected to grow 1.5 percent this year. [ECILT/ZA] However, Reserve Bank Governor Lesetja Kganyago shocked markets last week when he revealed the Bank projects growth at only 1.2 percent, slower than last year.
It is a different story for Kenya, east Africa’s biggest economy, where analysts’ forecasts showed a median of 5.5 percent growth this year despite its debt problems. That was unchanged from a poll taken three months ago.
Growth is expected to accelerate next year to 5.9 percent, slightly faster than in the last survey.
Raji attributed this to the fact that Kenya is now an oil producer, even though robust production levels are a long way off. He cautioned that the recent suspension of production by Tullow on security grounds could cause problems.
Tullow aims to produce the first oil from its $2.9 billion Kenya project by 2021, allowing the country to export crude. However, protests and security problems have halted a pilot scheme which trucks around 600 barrels of oil per day to a storage facility in Mombasa.
Major African economies are also at risk to what may be more difficult times for the world economy.
Reuters polls of several hundred economists taken this month show global economic activity remains solid but has already passed its peak, with protectionist trade policies likely to slow activity significantly.
“(The) knock-on impact of higher trade tariffs will weigh on inflation and consumption expenditure in advanced economies,” said Gaimin Nonyane, head of economic research at Ecobank Group. “Extended risk-off sentiment is also a downside risk to price levels and growth in developing countries.”
But many sub-Saharan African economies have been relatively insulated from the challenges facing larger global economies. In Ethiopia, for example, growth has averaged nearly 10 percent for the past decade, albeit from a very low base.
(For other stories from the Reuters global long-term economic outlook polls package:)
editing by David Stamp

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