
<p>KEY POINTS</p>



<ul><li>“China and India are expected to become the world’s largest and third largest economies respectively in the next decade while their consumers will increasingly dictate global tastes and trends,” Bird said.</li><li>Abrdn – which has around $586.35 billion in assets under management as of most recent results – has observed that interest in sustainable investment among local investors is also on the rise.</li><li>Bird urged Asian governments to strengthen the credibility of their net zero commitments, offering investors greater surety in allocating capital to the region.</li></ul>



<p>Indian and Chinese stock market capitalization may grow fourfold by 2050 as Asia turns from “laggard to leader” in the climate transition, according to&nbsp;<a href="https://www.cnbc.com/quotes/ABDN-GB" target="_blank" rel="noreferrer noopener">Abrdn</a>&nbsp;CEO Stephen Bird.</p>



<p>In a letter seen by CNBC marking the 30-year anniversary of the British investment company’s first Asian office opening in Singapore, Bird lauded the economic transformation over the last three decades that has seen more than a billion people lifted out of poverty.</p>



<p>He also noted that the region’s share of the global economy has become eight times larger than it was during the Asia Financial Crisis of 1997.</p>



<p>“Capital markets have also evolved and the region has switched from being mostly a destination for foreign investors to one where local investors dominate its markets,” Bird said.</p>



<p>He added that “the next 30 years looks to be every bit as exciting as the last,” and recommended investors remain calm during periods of volatility, keeping their “eye on the long game.”</p>



<p>Chinese stocks have endured a bruising year as&nbsp;<a href="https://www.cnbc.com/2022/05/26/china-holds-an-unprecedented-massive-videoconference-on-the-economy.html">President Xi Jinping’s “zero-Covid” strategy has stifled economic activity</a>&nbsp;and caused supply chain bottlenecks that have rippled through global markets.</p>



<p><a href="https://www.cnbc.com/quotes/GS" target="_blank" rel="noreferrer noopener">Goldman Sachs</a> analysts recently said they were <a href="https://www.cnbc.com/2022/05/20/goldman-sachs-picks-chinese-stocks-set-to-benefit-from-covid-reopening.html">“seeing light at the end of the tunnel,”</a> and Bird supported the long-term view that Asian equities can transition from “laggards to leaders,” in terms of both performance and their role in tackling the climate crisis.</p>



<p>“China and India are expected to become the world’s largest and third largest economies respectively in the next decade while their consumers will increasingly dictate global tastes and trends. Capitalization of their equity markets could also increase by a factor of four or more by 2050,” Bird predicted.</p>



<p>“Other countries in the region present exciting opportunities too. Bangladesh, Indonesia and Vietnam have some of the highest potential growth rates in the world, while Japan and South Korea’s aging populations have built up significant savings that need to be put to better work. And, as the region’s most open global financial center, Singapore will be at the heart of all of it.”</p>



<p>However, Bird acknowledged that progress is unlikely to be linear, with the globalization that has driven Asia’s economic growth in danger of fizzling out and climate change posing an “acute challenge” for the region.</p>



<p>“A by-product of Asia’s growth is that it has accounted for the lion’s share of the increase in global carbon emissions over the past three decades. This increased human footprint is also evident in rising air pollution and biodiversity loss,” he said.</p>



<p>While Asia alone cannot solve the climate crisis, its major economies must find ways to decouple their economic growth from fossil fuels, Bird suggested. Most major economies in the region have now adopted net-zero targets, while Asia is also playing a role in developing technological solutions to climate change.</p>



<p>“Whether in the form of solar panels, batteries for electric vehicles or green hydrogen, decarbonisation is dependent on Asian innovation,” Bird said.</p>



<p>Abrdn – which has around £464 billion ($586.35 billion) in assets under management as of most recent results – has observed that interest in sustainable investment among local investors is also on the rise, along with active engagement between asset managers and companies, creating potential opportunities for new forms of “sustainability-linked loans and bonds.”</p>



<h3 class="wp-block-heading" id="h-taking-action">Taking action</h3>



<p>Bird – who took the reins of Abrdn in September 2020 after a 21-year career with Citigroup’s Asian and Latin American operations – urged Asian governments to strengthen the credibility of their net zero commitments, offering investors greater surety in allocating capital to the region.</p>



<p>“More countries should follow China’s lead and establish carbon pricing which would bring certainty and encourage investment in low-carbon technologies and infrastructure. The revenue generated could be recycled into ensuring that the zero-carbon transition is a just one,” he said.</p>



<p>“We would also encourage the greater use of dedicated climate-related instruments such as green bonds; this would help align the interests of capital markets participants while the increased issuance would also encourage portfolio diversification.”</p>



<p>The continent’s political, trade and economic forums should be an opportunity to harmonize climate and sustainability standards, Bird said, suggesting a continent-wide common framework could strengthen financial flows into Asia.</p>



<p>“This century is Asia’s century. It must also be the century in which economic objectives are reconciled with sustainability goals,” Bird concluded. “The financial industry can and must play a pivotal role in converging these two priorities, guiding investment to support both outcomes.”</p>


Stock market exchange graph price drop with red numbers investment lose of business financial digital background – Candle stick charts stock crash crisis fall risk decreasing arrow down trend sell

Indian and Chinese stock markets could grow fourfold by 2050, Abrdn CEO says

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<p>The U.S., U.K., Canada, India, Israel and other developed countries have launched mass vaccination programmes. Africa is still struggling to access these life-saving vaccines. Africa CDC Director, John Nkengasong joins CNBC Africa for more.</p>


John Nkengasong gives update on Africa’s race to secure COVID-19 vaccines


<p>By Anu Shah</p>



<p>China is facing an unprecedented global backlash currently and many are advocating to look at India as its alternative.India has sensed an opportunity and is keen to make inroads to a space China is likely to vacate.</p>



<p> The GDP/capita of India is $2000,similar to China in 2005. So will India replace China? One needs to understand fundamentals key to manufacturing to predict the outcome.</p>



<p>India has 1.2 billion people, and 65% of the population is below 35 years of age. English also seems to be an advantage of India. However, the literacy rate of India in 2019 is only 69% v/s 77% in China in 2005 and 96.8% in 2019. While this loophole makes Indian human resources cheaper it also reflects the lack of<br>skilled or educated labour in the market.<br>In 1990, the economic level of India and China were almost the same. However, in the wake of the 1989 Tiananmen Square crackdown in China, the EU imposed an arms embargo on China, followed by US economic sanctions,absteniations from the international banks, suspension of export licences etc.China hence called a truce with Taiwan, Japan, US, and made allies by getting in trade agreements with them.<br>China is aware that in case of a recap of previous years its maritime lifeline can easily be cut off. So in 2001, China strived to join WTO and fostered deeper international trade ties. Which in effect helped China gain more volume ( > US and equal to EU) in trade.<br>India has a better geo-political standing however it has not fully harnessed these relationships for the political (including resolving issues with Pakistan) or economic advancement. India has joined WTO since its foundation, but even now its total trade volume is less than Hong Kong.<br>Post 1990 China dedicated its resources to the low skilled manufacturing and ousted competitors such as Africa, Southeast Asia, Latin America, and Eastern Europe.In the early 21st century US, EU and Japan fought each other in the upscale market while China became a leader for primary and ordinary products.<br>China has now reevaluated its strategy and is eyeing the upscale high tech market.The Chinese government has launched “Made in China 2025,” a state-led industrial policy that seeks to make China dominant in global high-tech. The program aims to use government subsidies, mobilize state-owned enterprises, and pursue intellectual property acquisition to catch up with—and surpass—Western technology across industries. This actually leaves room for India to undertake the industrial transfer from<br>China. India can certainly take the baton from China in the low cost, low skilled manufacturing space with least effort.<br>Lastly, China is 3 times the size of India and ranks first or at the forefront of the world in many resources.<br>Example : Extensive deposits of coal, oil and gas. Yet with increased demands China imported 12% of the global coal and 20% of global oil imports in 2019. India is not abundant in coal, oil or gas. India imports 80% of its oil from OPEC nations and is unlikely to be self-sufficient e anytime soon.<br>From this it seems like Manufacturing or economic growth of India would come at a higher cost than that of China, making it less competitive in pricing.<br>All in all, it looks like with a lack of a proper internal policy infrastructure and stronger geopolitical play, India will only settle to be a low cost manufacturing hub to replace China.</p>


anu shah

OPINION: Can India replace China as the manufacturing and tech hub


<h3 class="wp-block-heading">Key Points</h3>



<ul><li>India is set to report growth numbers for the first three months of this year, and analysts expect Asia’s third largest economy to have expanded at a slower pace.</li><li>According to economists polled by Reuters, gross domestic product for the January to March quarter is expected to have grown at 2.1% from a year ago, marking the&nbsp;weakest growth since comparable records began in early 2012.</li></ul>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/106540521-1589624934682gettyimages-1213168171.jpeg?v=1589625036&amp;w=678&amp;h=381" alt="Migrant workers and families wait for transport to go back to their native places after the goverment eased a nationwide lockdown imposed as a preventive measure against the COVID-19 coronavirus, in Ghaziabad on May 16, 2020."/><figcaption>Migrant workers and families wait for transport to go back to their native places after the goverment eased a nationwide lockdown imposed as a preventive measure against the COVID-19 coronavirus, in Ghaziabad on May 16, 2020.Prakash SINGH | AFP</figcaption></figure>



<p></p>



<p><a href="https://www.cnbc.com/india/">India</a>&nbsp;is set to report growth numbers for the first three months of this year, and analysts expect Asia’s third largest economy to have expanded at a slower pace.</p>



<p>On Friday, India will release data on its gross domestic product for the January to March period.The economy is expected to have expanded by 2.1% compared to a year ago, according to 52 economists&nbsp;<a href="https://www.reuters.com/article/us-india-economy-poll/india-first-quarter-gdp-growth-likely-to-be-weakest-since-2012-reuters-poll-idUSKBN2320AE" target="_blank" rel="noreferrer noopener">polled by Reuters</a>. If so, it would be India’s weakest growth since comparable records began in early 2012, the news wire reported.</p>



<p>Growth momentum in South Asia’s largest economy was already decelerating in previous quarters, before the coronavirus pandemic forced the country into a nation-wide lockdown that was extended multiple times, and grounded most economic activities in the ensuing weeks.</p>



<p>GDP is expected to worsen in the current April to June quarter, according to investment bank Goldman Sachs which recently&nbsp;<a href="https://www.cnbc.com/2020/05/22/coronavirus-goldman-sachs-on-india-growth-gdp-forecast.html">predicted a massive 45% decline</a>&nbsp;during that period, compared to the previous three months.&nbsp;</p>



<p>Some countries have already registered a “notable deceleration” in growth in the first three months of the year, due to the fallout of volatile financial markets, a marked slowdown in China, and weakening flows in tourism and trade sectors, Radhika Rao, an economist at Singapore’s DBS Group, said in a note.&nbsp;</p>



<p>“Households and businesses also likely grew cautious on their spending as it (was) a matter of not ‘if’ but ‘when’ the pandemic would quicken on their shores,” she wrote. “India is likely to witness something similar, not helped by the decelerating momentum in growth even prior to the infection spread.”&nbsp;</p>



<h2 class="wp-block-heading">Performance indicators</h2>



<p>Several high-frequency data pointed to a significant impact in the January-March period, which is also the fourth quarter of India’s fiscal year 2020.&nbsp;</p>



<p>The Index of Industrial Production, a composite indicator used to measure the level of industrial activity in the Indian economy every month, was down 16.65% in March from a year ago — or lower by 10% from February.&nbsp;</p>



<p><a href="https://economictimes.indiatimes.com/news/economy/indicators/indias-march-factory-activity-growth-at-4-month-low-amid-coronavirus-spread/articleshow/74942981.cms?from=mdr" target="_blank" rel="noreferrer noopener">Factory activities</a>&nbsp;slipped,&nbsp;<a href="https://www.livemint.com/industry/energy/india-s-fuel-sales-drop-18-in-march-petrol-demand-falls-16-diesel-slips-24-11586444964142.html" target="_blank" rel="noreferrer noopener">diesel consumption</a>&nbsp;was down and&nbsp;<a href="https://economictimes.indiatimes.com/industry/auto/auto-news/auto-sales-in-march-fall-45-due-to-lockdown/articleshow/75120690.cms?from=mdr" target="_blank" rel="noreferrer noopener">passenger vehicle sales</a>&nbsp;almost halved in March.&nbsp;</p>



<p>“High-frequency growth indicators are exhibiting broad-based declines across indicators on both the demand and the supply sides,” Sonal Varma, chief economist for India and Asia ex-Japan&nbsp;at Nomura, said in a note. She explained that data showed declines in the services sector and in the consumption of non-essential goods exceeded the slump in investment and industrial activity.&nbsp;</p>



<p>Varma pointed out that while the April data captured the “most intense period” of the lockdown, March data already showed a slump in consumption.&nbsp;</p>



<h2 class="wp-block-heading">Dismal outlook</h2>



<p>The infection’s spread accelerated in India by March, and it forced the government to implement a national lockdown in the last week that month. As the number of officially reported cases climbed, the shutdown was extended multiple times.</p>



<p>In April, however, some of those restrictions were relaxed, and subsequently, districts were demarcated based on the risk of spreading the infection.&nbsp;Some restrictions are set to be eased first in lower risk zones.&nbsp;</p>



<p>More than 158,000 people are now confirmed to have been infected in India and more than 4,000 have died, according to Johns Hopkins University data.&nbsp;</p>



<p>Nomura’s Varma said that while in theory, the partial relaxation of lockdown measures and the division of regions into low-risk or high-risk zones should open up around 70% of the economy on a sector-by-sector basis, there are other practical challenges to consider.</p>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/106538577-1589524033569gettyimages-1209438550.jpeg?v=1590626857&amp;w=678&amp;h=381" alt="A volunteer in Chennai, India holds a placard to raise awareness about the coronavirus on a street during a government-imposed nationwide lockdown to combat the spread of Covid-19."/><figcaption>A volunteer in Chennai, India holds a placard to raise awareness about the coronavirus on a street during a government-imposed nationwide lockdown to combat the spread of Covid-19.Arun Sankar | AFP | Getty Images</figcaption></figure>



<p></p>



<p>“Restrictions on inter-state travel, labour shortages, new social distancing norms and the&nbsp;absence of a homogeneous market for both demand (for goods) and supply (of inputs) suggest that, even as capacity utilization is likely to rise from April lows, it will likely remain ‘sub-optimal’ for much longer,” she said in the note.&nbsp;</p>



<p>Even when businesses are able to open up, they will have to deal with severe cash flow shocks, as they struggle to remain solvent and search for fresh financing, Varma added.</p>



<p>DBS’ Rao said while the current April-June quarter will mark the trough in the current cycle, “consumer discretionary sectors, production and services, are likely to take longer to recover.”&nbsp;</p>



<p>A strong agricultural sector may help to offset some of that weakness, Rao said, adding that risks of a second wave of infection domestically also warrants attention. DBS predicted a 1.3% growth for the January-March period compared to a year ago.&nbsp;</p>


106540521-1589624934682gettyimages-1213168171

India is set to report a sharp slowdown as the pandemic hits its economy — and things could get even worse


<p>Report by Riley de Leon</p>



<p><strong>Key Points:</strong></p>



<ul><li>Zipline has begun delivering Covid-19 test samples via drone in Ghana’s two largest cities, Accra and Kumasi.</li></ul>



<ul><li>It is the first time in history that autonomous drones have been used to make regular long-range deliveries into densely populated urban areas.</li></ul>



<ul><li>The start-up also has been working with the FAA to accelerate their launch of U.S. operations so it can distribute test kits and personal protective equipment via drone.</li></ul>



<p><a href="https://www.cnbcafrica.com/videos/2020/04/22/african-health-start-up-zipline-on-the-forefront-of-covid-19-fight/">Zipline</a>, the California-based drone-delivery start-up that delivers critical medical supplies in countries like <a href="https://www.cnbcafrica.com/news/2020/04/20/ghana-lifts-lockdown-on-key-regions-as-covid-19-cases-reach-1042/">Ghana</a>, has begun delivering <a href="https://www.cnbcafrica.com/covid-19/">Covid-19</a> test samples in the country’s two largest cities — Accra, the nation’s capital, and Kumasi, the country’s second-largest city.</p>



<p>The service began Friday, when 51 test samples were collected from patients at rural health facilities and transported to the company’s distribution center in Omenako, <a href="https://www.cnbcafrica.com/videos/2020/04/20/moodys-changes-ghanas-outlook-to-negative-b3-rating-affirmed/">Ghana</a>. Over the course of four separate flights, the company delivered those 51 samples to the Noguchi Memorial Institute for Medical Research in Accra for testing and analysis.</p>



<p>The company will also be delivering Covid-19 test samples collected at regional hospitals near its Mapong distribution center to the Kumasi Center for Collaborative Research. The first such delivery took place on Saturday, April 18. The company said it expects to operate this new daily service for the duration of the government’s Covid-19 response efforts, marking the first time in history that autonomous drones have been used to make regular long-range deliveries into densely populated urban areas.</p>



<p>It is also the first time that drones have been used in this way to deliver Covid-19 test samples.&nbsp;The new delivery service allows the government to more closely monitor and respond to the spread of the disease in some of the countries most remote areas.</p>



<p>“Zipline is dedicated to helping Ghana in its fight against the Covid-19 pandemic,” said CEO Keller Rinaudo. “Using contactless drone delivery to transport Covid-19 test samples will allow the government to respond to the pandemic and help save lives more quickly.”</p>



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<p>Since its launch in October 2016, the company’s autonomous drones have flown more than 2 million miles and delivered more than 60,000 vaccines, units of blood and other medical products in Ghana, <a href="https://www.cnbcafrica.com/videos/2020/04/21/rwandas-tech-innovators-quick-to-fill-the-market-demand-gap-amid-covid-19/">Rwanda</a> and India.</p>



<p>Before the Covid-19 outbreak, Zipline planned to launch U.S. operations in the fall of 2020, delivering to health facilities and homes. As the outbreak has worsened, the company has been working with the FAA on the necessary approvals needed to operate commercially, and says that they could do so within weeks of receiving said approval. According to a company statement, their emergency efforts in the U.S. would focus on the distribution of scarce resources like test kits and personal protective equipment (PPE), such as gloves and masks, as well as Covid-19 vaccines once they become available.</p>



<p>Zipline ranked No. 39 on the 2019 Disruptor 50 list. The 2020 Disruptor 50 list will be revealed this June.</p>



<p>This article was first published on CNBC <a href="https://www.cnbc.com/2020/04/20/zipline-begins-drone-delivery-of-covid-19-test-samples-in-ghana.html">https://www.cnbc.com/2020/04/20/zipline-begins-drone-delivery-of-covid-19-test-samples-in-ghana.html</a> and is republished with its permission.</p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


Zipline launches drone delivery of COVID-19 test samples in Ghana

Zipline begins drone delivery of COVID-19 test samples in Ghana


<p><a href="https://www.cnbc.com/yun-li/">By Yun Li</a><a rel="noreferrer noopener" href="https://twitter.com/YunLi626" target="_blank">@YUNLI626</a><a href="https://www.cnbc.com/eustance-huang/">Eustance and Huang</a><a rel="noreferrer noopener" href="https://twitter.com/EustanceHuang" target="_blank">@EUSTANCEHUANG</a><br>With additional reporting from CNBC Africa</p>



<p>Stock futures pointed to more pain ahead on Friday for European, African and US markets. US markets fell in overnight trading following major averages losing the most since the “Black Monday” market crash in 1987.</p>



<p>The JSE All Share Index fell over 11 per cent yesterday its worst crash since 1997.  The US travel ban on certain European countries hit shares in the region particularly hard, with major stock indexes falling more than 10 percent. </p>



<p>As of 12:25 a.m. ET Friday, futures on the&nbsp;<a href="https://www.cnbc.com/quotes/?symbol=.DJI">Dow Jones Industrial Average</a>&nbsp;fell 338 points, pointing to an implied opening drop of 450.62 points for the index on Friday. S&amp;P 500 futures and Nasdaq-100 futures also pointed to opening losses for the indexes.</p>



<p>The overnight action followed the official end of the record-long bull market run.&nbsp;The&nbsp;S&amp;P 500&nbsp;plummeted 9.5% in its worst day in more than three decades Thursday, joining the Dow in a bear market, or more than 20% from its recent peak.&nbsp;The Dow also suffered its worst point drop ever and the biggest percentage decline since 1987.</p>



<p>The market’s historic drop on Thursday indicated that investors believe the government’s fiscal plans and the Federal Reserve’s ramped-up funding actions wouldn’t be sufficient to offset the economic impact from the coronavirus.</p>



<p>“I would advocate for pushing money into the hands of companies right now, and into the hands of individuals … and individual consumers because that is really the only thing … that is gonna help at this point,” David Riedel, president and founder of Riedel Research Group, told CNBC’s “Squawk Box Asia” on Friday morning Singapore time.</p>



<p>“When they’re ready to spend, then that V (shaped recovery) &#8230; can take hold and things can start to recover quickly,” he said.</p>



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<p>Stocks briefly cut losses Thursday after the Fed said it would conduct three repo operations as part of a stepped-up program to help keep liquidity flowing.&nbsp;The central bank added more than $198 billion to the financial system in a combination of overnight and longer-term offerings. But the market ended up closing at session lows.</p>



<p>Investors were also bombarded with a slew of negative headlines about the fast-spreading coronavirus.&nbsp;&nbsp;The NCAA has canceled its March Madness basketball tournaments, a day after the&nbsp;<a href="https://www.cnbc.com/2020/03/12/coronavirus-nba-suspends-season-after-player-tests-positive.html">National Basketball Association suspended the remainder of its season indefinitely</a>. New York City Mayor Bill de Blasio declared a&nbsp;<a href="https://www.cnbc.com/2020/03/12/new-york-city-declares-state-of-emergency.html">state of emergency</a>, while new restrictions for large events and businesses were imposed.</p>



<p>“There are no guarantees here, and things could get worse,” said Brad McMillan, chief investment officer for Commonwealth Financial Network. “If the number of cases continues to increase, the economic damage will go from hitting confidence to something worse. If the economy deteriorates, markets will reflect that shift.”</p>



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<p>Meanwhile, the White House’s response to the coronavirus outbreak disappointed the market. President Donald Trump&nbsp;<a href="https://www.cnbc.com/2020/03/12/trump-bans-travel-from-europe-here-what-you-need-to-know.html">announced travel from Europe will be suspended for 30 days</a>, and added the administration would provide financial relief for workers who are ill or quarantined.&nbsp;</p>



<p>Traders awaited more action by government officials heading into the weekend.</p>



<p>Thursday’s rout also marked the second time this week that a market-wide circuit breaker was triggered to prevent stocks from a free-fall.&nbsp;Trading was halted for 15 minutes shortly after the open after an initial 7% drop in the S&amp;P 500.</p>



<p>“These are no doubt jarring times — investors should take this time to review their portfolio and make sure they’re comfortable with their level of risk,” said&nbsp;Mike Loewengart, managing director of investment strategy at E-Trade.</p>



<p><em>This article first appeared on CNBC  <a href="https://www.cnbc.com/2020/03/12/futures-stock-market-coronavirus-concerns.html">https://www.cnbc.com/2020/03/12/futures-stock-market-coronavirus-concerns.html</a> and is republished with its permission </em></p>


Markets in turmoil: India, Thailand halt trading, stock futures point to more pain ahead for US, European & African markets

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Kenya and Côte d&#8217;Ivoire joined global economies such as China and India in the top five markets with the greatest potential for future trade growth according to the latest standard chartered trade 20 index. Regional Head of Commercial Banking in Africa &amp; Middle East, Ad Ganesh joins CNBC Africa for more on the trade index.</p>


Stanchart Index lists Kenya as top emerging trade partner in Africa

StanChart Index lists Kenya as top emerging trade partner in Africa

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<p>In February 2017, India and Rwanda launched an Innovation Growth Programme which aims to strengthen bilateral relationship in science, technology and innovation. To discuss the relations between the two countries, Munish Gupta, President of India-Rwanda Friendship Association (IRFA) joins CNBC Africa for more.</p>


India-Rwanda relations prove beneficial for science, technology and innovation

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<p>At the on-going India-Africa Information and Communications Technology (ICT) expo taking place in Kigali. To discuss what Africa can do to achieve digital transformation aspirations – Sanjay Nayak, CEO and managing Director of Tejas Networks joins CNBC Africa for more.</p>


Developing a digital economy: What can Africa learn from India?

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<p>Tanzanian tycoon, author and philanthropist Reginald Mengi has died at the age of 75. He is one of the richest people in Africa and was also known for his business in media, consumer goods but mostly the charity work of sending hundreds of Tanzanian children with heart diseases to India for treatments. For more on his legacy, CNBC Africa&#8217;s Head of Programming and Author of Africa&#8217;s Billionaires Chris Bishop joins for more.</p>


Reginald Mengi Tanzania billionaire dies at 75

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<p>A cumbersome visa regime, high crime rate and the lack of a direct flight between India and South Africa are some of the biggest stumbling blocks for businesses opportunities between the countries. This is according to the President of the India Business Forum, Jitin Bhatia. CNBC Africa caught up with Jitin at the BRICS Business Council meeting taking place in Johannesburg.</p>


India Business Forum’s Jitin Bhatia on how to boost trade with SA

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<p>Brand South Africa and InvestSA are back from their whirlwind tour to Switzerland, Germany, France and India. They were there to attract investment to South Africa. Were they a hit?</p>


Brand SA’s Judy Smith-Höhn on attracting investment to SA

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<p>Mixed reactions trail Nigeria’s Bilateral Air Service Agreement after the country signed one with India to deepen flight operations. Anthony Eke, Acting Divisional Head; Infrastructure and Transport at Diamond Bank joins CNBC Africa to discuss the ripple effects of Nigeria’s bilateral air services agreements.</p>


Mixed reactions trail Nigeria’s Bilateral Air Service Agreement

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<p>In over 100 years, the aviation industry has grown to over 4 billion passengers; the rise in demand for air travel in emerging economies is seen to create new opportunities. For a better understanding of the trickle-down effect, CNBC Africa sat down with Hadi Akoum Sales VP for Africa and Indian Ocean at Airbus.</p>


Africa’s aviation sector outlook

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<p>As the Business Unity South Africa held its Business Economic Indaba aimed at developing at developing strategies of a transformed and inclusive economy, South African president Cyril Ramaphosa’s spokesperson Khusela Diko joins CNBC Africa’s Lubabalo Mashiqana for a discussion on WEF, SA/India relations and SA’s intentions to aid Zimbabwean economy.</p>


Presidency on SA/India relations and plans to help Zimbabwe

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<p>The Indian government will be investing up to R60 million towards the Gandhi-Mandela centre. CNBC Africa Karabo Letlhatlha spoke to the Indian High Commissioner Ruchira Kamboj to South Africa and Lesotho, to discuss the fast turnaround time of the memorandum and what&#8217;s in it for India.</p>


India to invest R60mn towards Gandhi-Mandela centre of specialisation for artisans

<p>Natasha Turak</p>
<p>Source: <a href="https://www.cnbc.com/2018/09/05/egypt-can-handle-emerging-market-turmoil-to-a-limit-finance-minister.html">Egypt can handle the emerging markets downturn &#8216;up to a limit,&#8217; finance minister says</a></p>
<ul>
<li>Egypt is enjoying its highest economic growth in a decade, at 5.3 percent for the 2017-2018 fiscal year compared to 4.2 percent the previous year.  </li>
<li>The country of 90 million has entered recovery mode more than seven years after its 2011 revolution and a series of terrorist attacks sent the economy spiraling. </li>
<li>But the austerity measures behind much of this growth have led to sharply increased living costs for ordinary Egyptians and deepening social discontent, and wider emerging market turmoil is &#8220;worrying,&#8221; the country&#8217;s finance minister told CNBC. </li>
</ul>
<p>Amid a brewing storm for emerging markets, Egypt&#8217;s finance minister believes his country&#8217;s economy can weather what has thrown many others into crisis — as long as the underlying causes don&#8217;t get any worse.</p>
<p>Speaking to CNBC&#8217;s Hadley Gamble in Cairo, the recently-appointed Mohamed Maait discussed what the current market turmoil meant for the Middle Eastern country of 90 million.</p>
<p>&#8220;It is worrying; however, we are able until now to absorb these negative effects&#8230; Egypt&#8217;s economy has sources to address this. However, I have to be very honest — up to a limit,&#8221; Maait said. &#8220;So hopefully what is happening will be corrected and will move into a stable position, because yes we are absorbing all these shocks — oil prices, emerging market problems, increasing interest rates — but if they continue like that, it will be a problem for us.&#8221;</p>
<p>Investors have been<br />
stepping away from emerging markets<br />
 on the back of rising global interest rates and a strengthening dollar, which have made the record-high stock of dollar-denominated emerging market debt significantly more painful to pay off. Several major emerging economies, including Turkey  Argentina and<br />
Indonesia,<br />
 are seeing their currencies hit record lows, while even India and<br />
China<br />
 are seeing asset values slip amid<br />
growing trade war fears.<br />
 The MSCI emerging markets index is down nearly 9 percent year-to-date.</p>
<p>Egypt&#8217;s long road to recovery</p>
<p>Maait&#8217;s comments come as Egypt enters a period of solid recovery more than seven years after its 2011 revolution and a series of terrorist attacks sent the economy spiraling. But the austerity measures behind some of this growth have led to sharply increased living costs for ordinary Egyptians and deepening social discontent.</p>
<p>Egypt reported its highest economic growth in a decade in July, at 5.3 percent for the 2017-2018 fiscal year compared to 4.2 percent the previous year. The government aims to hit 7 percent growth by 2022, an aspiration bolstered by the International Monetary Fund&#8217;s (IMF) forecast of 6 percent growth in the near-term — the highest in North Africa — and a reduction in inflation and unemployment of 7 percent by 2022.</p>
<p><img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/09/05090235/105076652-GettyImages-924339106.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Khaled Desouki | AFP | Getty Images"/></p>
<p>The country&#8217;s lofty macro figures stem from a number of IMF-imposed structural reforms implemented by the Egyptian government since late 2016, alongside a $12 billion loan from the international lender. Egypt floated its currency, began reducing subsidies and raising taxes, and enacted a series of investment reforms — including lowering taxes and facilitating bureaucratic processes for international companies — boosting foreign investor confidence.</p>
<p>The private sector has already reaped benefits, with Egypt&#8217;s benchmark EGX 30 index up 38.5 percent since December 2016.</p>
<p>Skyrocketing living costs</p>
<p>But what&#8217;s been less touted is the cost of these austerity measures. Not long after President Abdel Fattah al-Sisi&#8217;s election in 2014 and the subsequent IMF loan — unlocked after Egypt unpegged its currency, the pound, triggering its 50 percent crash against the dollar — basic costs for Egyptians skyrocketed.</p>
<p>Gas prices have tripled in the past three years and electricity costs have more than quadrupled. Once heavily subsidized by the state, the price of basic staples such as bread, sugar and cooking oil have more than doubled.</p>
<p>And poverty is on the rise — it&#8217;s currently at nearly 28 percent, up from 25 percent in 2010, and in rural areas is as high as 60 percent, according to the World Bank. Forty percent of Egyptians live on less than $2 a day. Wages have not kept up with the rise in living costs, and the Bank cites high inflation and the erosion of real incomes as having &#8220;taken a toll on social and economic conditions.&#8221;</p>
<p>The finance minister held that these reforms, though exacting, are necessary.</p>
<p>&#8220;Our country is going through a very, very difficult situation. We had to make this painful reform, which affected it negatively,&#8221; Maait said. &#8220;However, the outcome of this reform&#8230; started to give positive signs.&#8221;</p>
<p><img loading="lazy" decoding="async" src="https://d16akly8855cs7.cloudfront.net/wp-content/uploads/2018/09/05090240/104806483-GettyImages-824331116.1910x1000.jpg" alt="" height="1000" width="1910" data-licensor-name="Fayed El-Geziry | NurPhoto | Getty Images"/></p>
<p>Indeed, ratings agency<br />
Moody&#8217;s recently upgraded Egypt<br />
 from stable to positive, ranked as &#8216;B3,&#8217; its best since 2011. Unemployment has also come down, and inflation eased to 13.5 percent in July, a major improvement from a record 34.2 percent just one year prior.</p>
<p>Still, most Egyptians have yet to feel the benefits of these improvements on their day-to-day lives. Crime, corruption and pollution, as well as inadequate social services provision, continue to plague the country&#8217;s surging population.</p>
<p>Debt crisis on the horizon?</p>
<p>Beneath the rosy growth numbers, some economists see a debt crisis in the making.</p>
<p>Egypt&#8217;s government debt stood at 36.8 percent of gross domestic product (GDP) in June, up 11.6 percent year-on-year and higher than Turkey&#8217;s figure of 23 percent of GDP. Rising global interest rates and a stronger dollar have pushed up financing costs for Egypt and other emerging markets, just as the country is set to issue a raft of new euro and dollar bonds, worth around $30 million, between 2018 and 2021.</p>
<p>Nonetheless, Maait expressed confidence that the debt load would be reduced.</p>
<p>&#8220;We are recognizing that we have a high level of debt and we have to reduce it,&#8221; he said, adding that the government would introduce policies in the coming weeks designed to reduce the level of debt.</p>
<p>These are to include encouraging further structural reform, establishing internal and external borrowing targets, and continuing to pursue growth, Maait said. &#8220;We need our economy to grow, because with our economy growing, creating jobs, creating more revenue, that means our revenue growth is much faster than our expenditure growth which can also help us to reduce the level of borrowing.&#8221;</p>
<p>Security challenges remain</p>
<p>New sources of revenue, such as recently discovered gas reserves attracting the interest of multinationals like BP, Russia&#8217;s Rosneft and Italy&#8217;s ENI, should help in this direction, as will a recent rebound in Egypt&#8217;s tourism numbers. Devastated by a string of terrorist attacks — most notably the 2015 bomb blast on a Russian airliner departing Egypt&#8217;s Red Sea resort of Sharm el Sheikh — tourism, a vital source of hard currency and local jobs, is now up 30 percent from last year.</p>
<p>But security remains fragile, as evidenced by an<br />
attempted bomb attack on Tuesday<br />
 outside the<br />
U.S. embassy in Cairo.<br />
 No casualties have been reported.</p>
<p>Western nations have been providing military training and equipment to the Sisi government to aid in its fight against Islamic militants in the restive Sinai peninsula, in what many rights groups describe as prioritizing security while turning a blind eye to the country&#8217;s poor human rights record.</p>
<p>In the past five years, more than 60,000 people have been arrested or charged by authorities — including numerous peaceful protesters and journalists — and the country has built 19 new prisons to house them, according to Human Rights Watch. General Sisi came to power after the military ousted Muslim Brotherhood candidate Mohamed Morsi in 2013, the country&#8217;s first-ever democratically elected president.</p>
<p/>


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