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<p>Nigeria&#8217;s President Muhammadu Buhari says some of the statistics by the International Monetary Fund (IMF) and World Bank on Nigeria are wild estimates and bear little relation to the facts on the ground. For a focus on Nigeria’s economy and more, Oluseyi Akinbi, Director at Zedcrest Capital joins CNBC Africa.</p>


Oluseyi Akinbi on getting the right data on Nigeria’s economy

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<p>During Buhari’s budget presentation, the Nigerian President said the 2020 budget is designed to drive fiscal consolidation to strengthen the economy. Meanwhile, the International Monetary Fund (IMF) says Nigeria&#8217;s elevated fiscal deficits rely on central bank financing which complicates monetary policy. To breakdown Nigeria&#8217;s spending plan, Sam Chidoka, Managing Director and CEO of Kairos Capital joins CNBC Africa.</p>


From the economy to monetary policy: Key takeaways from Nigeria’s 2020 budget


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s public debt, which is approaching rating agencies’ red line of 60% of economic output, is reaching uncomfortable levels, an IMF official said on Thursday.</p>



<p>Public finances in Africa’s most industrialised economy are under strain as growth has proved weaker than expected and a clutch of state companies have needed large cash injections.</p>



<p>In July, the government said it would give power utility Eskom 59 billion rand ($4.1 billion) of additional financial support over the next two years, on top of an already-promised bailout of 230 billion rand spread over the next decade.</p>



<p>That spooked investors and credit agencies.</p>



<p>Finance Minister Tito Mboweni warned shortly afterwards that this and other bailouts for state firms would almost certainly push up the budget deficit as well as state borrowing, raising the prospect of emergency external loans.</p>



<p>“South Africa has not requested an IMF-supported programme. We do not see a balance of payments need &#8230; so as far as we are concerned there’s no need for South Africa to approach the IMF,” the lender’s senior resident representative in South Africa, Montfort Mlachila, told a conference in Johannesburg.</p>



<p>Mlachila, however, said the debt trajectory, forecast at 55% of GDP in February by treasury but likely to be revised upwards at the October mini-budget, was worrying.</p>



<p>“South Africa has the highest level of debt in its history,” he said. “This is actually quite concerning without a doubt &#8230; The public debt trajectory is not favourable and becoming uncomfortable.”</p>



<p>Reporting by Olivia Kumwenda-Mtambo; Writing by Mfuneko Toyana; Editing by Hugh Lawson and Andrew Cawthorne</p>


IMF says South Africa’s debt is “becoming uncomfortable”, but no bailout requested, what you need to know

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<p>Abebe Aemro Selassie, Director of African Department at the International Monetary Fund (IMF) had a conversation on investment and sustainable debt here on the continent. He joins CNBC Africa&#8217;s Arnold Kwizera for more.</p>


IMF’s Abebe Aemro Selassie on investment and sustainable debt management in Africa

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<p>According to a latest projection by the International Monetary Fund, Rwandan economy is projected to grow by 7.8 per cent in 2019 and over the medium term at around 8 percent. We caught up with IMF&#8217;s Mission Chief for Rwanda Laure Redifer, for more on this and the recently concluded visit on a new three year policy coordination instrument and the 2019 article IV consultation.</p>


Rwanda’s economy projected to grow by 7.8 per cent in 2019 – IMF

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<p>The International Monetary Fund is visiting the country to discuss economic development. CNBC Africa&#8217;s Fifi Peters attended a joint media pressing in collaboration with the South African Reserve Bank.</p>


Lagarde clears the air on IMF’s South Africa bailout

<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

<p>JOHANNESBURG, Aug 21 (Reuters) &#8211; The International Monetary Fund (IMF) said on Tuesday it would begin talks with Angola over providing financial support after the oil producing country’s economic growth was weaker than expected this year.</p>
<p>Africa’s second-largest oil producer has been hit by lower oil prices, which have caused a dollar liquidity squeeze that has made it difficult for foreign companies to repatriate profits and discouraged many from investing.</p>
<p>Angola’s Finance Ministry said on Monday it had sought financial support from the IMF but did not provide further detail on how much money was involved.</p>
<p>“We expect to initiate programme discussions with the Angolan authorities as soon as feasible,” Deputy Managing Director of the IMF Tao Zhang said in a statement which confirmed the Fund had received a letter from the Angolan authorities to start talks.</p>
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<p>“The IMF stands ready to help the authorities address Angola’s economic challenges by supporting their economic policies and reforms based on the government’s macroeconomic stabilisation programme and in the national development plan for 2018–22,” Zhang said.</p>
<p>Angola’s economy has struggled due to lower oil prices, a situation made worse by declining production. Output is expected to fall to 1.5 million barrels per day in 2018, down from 1.6 million last year and 1.9 million a decade ago.</p>
<p>The IMF expects the country’s economy to grow 2.2 percent this year, well below an original government forecast of 4.9 percent.</p>
<p>President João Lourenço, who took over last September after 38 years of rule by José Eduardo dos Santos, has said he wants to bring about an economic miracle in Angola by opening up to foreign investment and diversifying away from oil. (Reporting by Tanisha Heiberg. Editing by Jane Merriman)</p>


Angola talks for IMF funding to begin

<p><em>By Professor Landry Signé, David M. Rubenstein Fellow in the</em> <em><a href="https://www.brookings.edu/experts/landry-signe/">Global Economy and Development Program and Africa Growth Initiative at the Brookings Institution</a>, distinguished fellow at <a href="https://africanstudies.stanford.edu/people/landry-sign">Stanford University’s Center for African Studies</a>, </em><a href="https://www.weforum.org/people/landry-signe">World Economic Forum Young Global Leader</a>, <em>and author of “<a href="https://www.amazon.com/Innovating-Development-Strategies-Africa-International-ebook/dp/B0727RRF3X">Innovating Development Strategies in Africa: The Role of International, Regional and National Actors.</a>”</em></p>
<p>This year’s <a class="js-external-link" href="http://www.imf.org/external/spring/2018/">Spring Meetings of the Boards of Governors of the International Monetary Fund (IMF) and World Bank Group</a> were full of thought-provoking discussions on emerging challenges and opportunities facing the African continent. I especially found that the conversation during <a class="js-external-link" href="http://www.worldbank.org/en/events/2018/04/21/the-state-of-the-africa-region-leveraging-innovation-to-transform-agriculture-and-energy"><em>The State of the Africa Region</em></a><u>,</u> the meetings’ premier event on Africa, particularly captured the key trends shaping the continent’s economic landscape. Interviewed by CNBC Africa Senior Anchor Gugulethu Mfuphi, Dr. Albert Zeufack, chief economist for Africa at the World Bank Group, eloquently presented the Bank’s most recent findings on <a class="js-external-link" href="https://openknowledge.worldbank.org/handle/10986/29667">African economies</a>.</p>
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<p>Below are what I found to be the most insightful comments and ideas I heard throughout the week, which world-renowned economist Zeufack also emphasized during the event. These points, shared with the governors of central banks, ministers of finance and development, parliamentarians, private sector executives, representatives from civil society organizations, and academics, I think accurately reflect and anticipate the economic future of the continent.</p>
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<h3><strong>Regional trends: Sub-Saharan Africa’s growth overall is rebounding and likely to be sustained, but only given certain conditions. West and East Africa are leading the way, but Central Africa is struggling. Angola and South Africa are undergoing positive economic transitions.</strong></h3>
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<p>After a slowdown in recent years, growth is returning to Africa (with projections of 3.1 percent growth in 2018, and 3.6 percent in 2019-20). The regression has stopped and, for the first time since 2016, per capita GDP growth has been positive.</p>
<p><strong>READ:</strong> <a href="http://cnbc.africa/insights/2018/04/21/imf-africa-outlook/">The IMF has altered its outlook on Africa, this is what’s changed</a></p>
<p>In fact, two of Africa’s largest economies, Angola and South Africa, are undergoing significant transitions—positioning them and the continent for higher growth, given their weight to Africa’s GDP. As mentioned in the recently released <a class="js-external-link" href="https://openknowledge.worldbank.org/handle/10986/29667"><em>Africa’s Pulse,</em></a> “In Angola, the revisions reflect the expectation that a more efficient foreign exchange allocation system, increased availability of foreign exchange due to higher oil prices, rising natural gas production, and improved business sentiment would help support the rebound in economic activity. In South Africa, slowing inflation and improving business confidence are expected to help sustain the ongoing recovery in domestic demand, especially in investment.”</p>
<p>Moreover, as illustrated in Figure 1.14 from that report<em>,</em> East and West Africa’s growth prospects have strengthened and are leading Africa in and to higher growth. For example, Ethiopia, Rwanda, and Tanzania (East Africa) are growing at over 6 percent. Senegal and Côte d’Ivoire, and Ghana and Guinea to a certain extent, are powering through growth with improved performance as well.</p>
<p>Despite this optimism, there are reasons to be cautious. These positive growth trends are based on two assumptions that are not guaranteed: First, commodity prices will rise or remain stable. Second, African countries will accelerate and deepen macroeconomic and structural reforms.</p>
<p>Additionally, despite the positive and relieving trends, the continent is still not growing fast enough and is still far from pre-crisis levels. Governments should therefore continue deep macroeconomic and structural reforms. For example, the CEMAC region (Central African Economic and Monetary Community) needs deeper structural reforms and smart fiscal adjustments. Countries should therefore keep strengthening their reforms to achieve success.</p>
<figure class="wp-caption aligncenter"><a href="https://www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png"><img loading="lazy" decoding="async" class="lazyautosizes lazyloaded" src="https://i1.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1" sizes="auto, 1379px" alt="Global_20180423_ged_africaspulse_gdpgrowth" width="1379" height="1045" data-src="https://i1.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1" data-srcset="https://i1.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1 768w,https://i1.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png?fit=600%2C9999px&amp;ssl=1 600w,https://i1.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png?fit=400%2C9999px&amp;ssl=1 400w,https://i1.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_ged_africaspulse_gdpgrowth.png?fit=512%2C9999px&amp;ssl=1 512w" /></a><figcaption class="wp-caption-text">Source: World Bank. Africa’s Pulse, No. 17, April 2018.</figcaption></figure>
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<h3><strong> Debt is obviously rising, but the most concerning trend is the change in debt composition, which brings market-led risks that countries are not well equipped to manage. The situation may also be aggravated by investment inefficiency. In fact, the number of countries at high risk of debt distress has doubled since 2013, now standing at 18.</strong></h3>
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<p>The question of debt sustainability has returned as an issue of concern for the continent and was prominent throughout the Spring Meetings. Debt has been continuously rising, with the average debt-to-GDP ratio increasing by 15 percentage points from 2010 to 2017. Some countries’ debt-to-GDP ratios have multiplied by five during the same period. In the first quarter of 2018, eurobond issuance exceeded Africa’s 2017 year-end amount (Figure 2.18).</p>
<figure id="id=&quot;attachment_508262&quot; " class="wp-caption aligncenter size-article-inline"><a href="https://www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png"><img decoding="async" class="lazyautosizes lazyloaded" src="https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1" sizes="1114px" alt="Source: World Bank. Africa's Pulse, No. 17, April 2018." width="1114" data-src="https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1" data-srcset="https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1 768w,https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png?fit=600%2C9999px&amp;ssl=1 600w,https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png?fit=400%2C9999px&amp;ssl=1 400w,https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_bond-issuance.png?fit=512%2C9999px&amp;ssl=1 512w" /></a><figcaption class="wp-caption-text">Source: World Bank. Africa’s Pulse, No. 17, April 2018.</figcaption></figure>
<p>More notably, debt composition has also been changing extremely fast, as countries are moving toward short-term maturities and market-led debts, and away from concessions and long-term financing. This situation exposes African countries to new type of risks, very complex market-led risks that countries are “not well-equipped to manage,” according to Zeufack. It is uncertain if Africa will be able to service the debt (especially since the maturities are mismatched in tightening fiscal spaces).</p>
<p>Also worrying is the fact that countries are not necessarily using this debt efficiently. On the contrary, moderate borrowers (with a 10- to 20-point increase of average public borrowing debt between 2012 and 2017) are mostly borrowing for consumption instead of investing. If heavy borrowers (with more than a 20-point increase of average public borrowing debt between 2012 and 2017) are investing, they are not doing so efficiently. These factors are lowering growth in many of these countries.</p>
<figure class="wp-caption aligncenter"><a href="https://www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png"><img loading="lazy" decoding="async" class="lazyautosizes lazyloaded" src="https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1" sizes="auto, 1242px" alt="More notably, debt composition has also been changing extremely fast, as countries are moving toward short-term maturities and market-led debts, and away from concessions and long-term financing. This situation exposes African countries to new type of risks, very complex market-led risks that countries are “not well-equipped to manage,” according to Zeufack. It is uncertain if Africa will be able to service the debt (especially since the maturities are mismatched in tightening fiscal spaces). Also worrying is the fact that countries are not necessarily using this debt efficiently. On the contrary, moderate borrowers (with a 10- to 20-point increase of average public borrowing debt between 2012 and 2017) are mostly borrowing for consumption instead of investing. If heavy borrowers (with more than a 20-point increase of average public borrowing debt between 2012 and 2017) are investing, they are not doing so efficiently. These factors are lowering growth in many of these countries." width="1242" height="899" data-src="https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1" data-srcset="https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png?w=768&amp;crop=0%2C0px%2C100%2C9999px&amp;ssl=1 768w,https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png?fit=600%2C9999px&amp;ssl=1 600w,https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png?fit=400%2C9999px&amp;ssl=1 400w,https://i2.wp.com/www.brookings.edu/wp-content/uploads/2018/04/global_20180423_africaspulse_debtdistress.png?fit=512%2C9999px&amp;ssl=1 512w" /></a><figcaption class="wp-caption-text">Source: World Bank. Africa’s Pulse, No. 17, April 2018.</figcaption></figure>
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<h3><strong> Moving forward, countries should develop the appropriate fiscal space and domestic resource mobilization to service debt, increase investment efficiency, rethink infrastructure financing, and fully embrace innovation in order to leverage disruptive technologies to boost productivity, especially in the agriculture and energy sectors. </strong></h3>
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<p>I was pleased that much of the conversation at the event focused on solutions to many of these challenges. In fact, Zeufack stressed the importance of accelerating and deepening reforms to strengthen the growth momentum.</p>
<p>First, proper fiscal space should be created to appropriately service debt, with a substantial increase in domestic resource mobilization. Countries should wisely collect and spend their own funds on the public goods and services they need. Second, countries should adopt reforms aiming to increase the efficiency of investments, from project selection to successful delivery. Increasing efficiency will provide additional resources for macroeconomic stability and debt sustainability. Third, infrastructure financing should be more meticulously designed and implemented by African countries to avoid bad deals that substantially increase debts without delivering sufficient quality infrastructure. Finally, countries have to fully embrace innovation, and harness, scale up, and leverage technologies to boost productivity across and within sectors, especially in agriculture and energy.</p>
<p>As was evident throughout the Spring Meetings, leading economists like Zeufack and Makhtar Diop consider bridging different sectors to achieve macroeconomic and structural transformation and bring big data, artificial intelligence, education, and a strong endogenous private sector to help accelerate the much-needed development of efficient productive sectors to be absolutely critical for Africa’s success.</p>
<h2>My final thoughts</h2>
<p>Given the <a href="https://www.brookings.edu/opinions/capturing-africas-high-returns/">tremendous economic potential of Africa</a>, it is critical, when implementing these reforms, to ensure that <a href="https://www.brookings.edu/research/broadening-the-benefits-of-growth/">Africa’s fast economic growth leaves less, not more, poor people behind</a> contrary to what happened in the past decades. Some of the challenges and solutions presented here are further discussed in my book released by Cambridge University Press, <a class="js-external-link" href="https://www.amazon.com/Innovating-Development-Strategies-Africa-International-ebook/dp/B0727RRF3X"><em>Innovating Development Strategies in Africa: The Role of International, Regional, and National Actors</em></a>, as well as in some shorter publications on <a href="https://www.brookings.edu/blog/africa-in-focus/2017/11/16/the-road-ahead-for-fixing-africas-infrastructure-deficit/">infrastructure (including energy)</a>, <a href="https://www.brookings.edu/blog/africa-in-focus/2017/10/16/the-quest-for-food-security-and-agricultural-transformation-in-africa-is-the-caadp-the-answer/">agriculture</a>, <a href="https://www.brookings.edu/blog/africa-in-focus/2017/10/13/innovate-or-fail-the-options-open-to-africa-for-implementing-the-sdgs-and-agenda-2063/">policy implementation</a>, and the <a class="js-external-link" href="https://theconversation.com/why-africas-free-trade-area-offers-so-much-promise-93827">potential impact of the African Continental Free Trade Area</a>.</p>
<p>As beautifully said by Mfuphi during the April 21 event, “The music is back on; the party hasn’t yet started.” In other words, the return of growth is encouraging, but much more needs to be done to accelerate the growth momentum and scope, and broaden its benefits so that no one is left behind.</p>


The state of African economies unravelled

<p>HARARE (Reuters) &#8211; Zimbabwe is considering issuing between $2.5 and $3.5 billion in sovereign bonds after elections set for July and will use some of the money to clear arrears to foreign lenders, Deputy Finance Minister Terrence Mukupe said on Tuesday.</p>
<p>Mukupe, whose comments were broadcast on state television, said the southern African nation would use export receipts from tobacco, gold and horticulture to repay the bond.</p>
<p>“The position that we have is that post election we should be able to put in place a sovereign or export-related bond and we think we should be able to raise between $2.5 to $3.5 billion,” Mukupe said.</p>
<p>During a speech in London on Monday, Foreign Minister Sibusiso Moyo said his country was committed to clear about $1.8 billion in arrears with the World Bank and the African Development Bank before it taps other sources of financing.</p>
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<p>Zimbabwe has not received funding from the World Bank, International Monetary Fund and African Development Bank since it defaulted on its debt in 1999.</p>
<p>Under President Emmerson Mnangagwa, who succeeded Robert Mugabe last November, Zimbabwe is trying to mend ties with the West, including rejoining the Commonwealth.</p>
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<p class="content_27_rw">Reporting by MacDonald Dzirutwe; Editing by Ed Stoddard</p>
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Why Zimbabwe plans to issue sovereign bonds

<p>By <em>Jacques Nel, Chief Economist: Southern and East Africa, NKC African Economics </em></p>
<p>The International Monetary Fund (IMF) released its World Economic Outlook (WEO) report for April 2018. Entitled “Cyclical Upswing, Structural Change”, the largely positive report notes that global economic growth has not been this strong and broad-based since the sharp 2010 bounce-back following the 2008-09 financial crisis.</p>
<p>Global real GDP growth is projected to reach 3.9% this year, which is slightly higher than the October projection of 3.7%. The Fund’s growth forecast for sub-Saharan Africa (SSA) remains at 3.4% for this year. This reflects a notable improvement from the 2.8% growth estimate for 2017. The Middle East and North Africa (Mena) region is also projected to grow by 3.4% this year, which is markedly higher than the 2017 growth estimate of 2.6% and slightly stronger than the October projection of 3.2% for 2018.</p>
<p>The latest update includes some notable revisions to individual country growth projections for this year.</p>
<p>Algeria saw the largest upward revision to its 2018 growth forecast from a projection of 0.7% made in October to the latest figure of 3.0%. The oil exporter continues to struggle to adapt to structurally lower energy prices, but higher oil- and gas-related fiscal revenue is expected to support the government’s planned increase in capital spending this year.</p>
<p>Zimbabwe is another country that saw a sizeable upward adjustment in its 2018 growth forecast (from 0.8% made in October to the current figure of 2.4%), with the IMF evidently giving newly installed President Emmerson Mnangagwa the benefit of the doubt over whether his promising rhetoric will be converted into action.</p>
<p>Furthermore, most of the continent’s economic giants also saw upward revisions to their 2018 growth projections, including Nigeria (due to an improved outlook for oil revenue and the introduction of forex measure to ease liquidity constraints), Angola (due to stronger oil prices), Egypt (due to stronger domestic demand and the effects of structural reforms), and South Africa (due to ‘Ramaphoria’).</p>
<p>At the other end of the spectrum, some countries saw notable reductions in their 2018 growth projections.</p>
<p>Libya saw the largest downward revision, from an October projection of 31.2% to the latest figure of 16.4%. The IMF made significant downward revisions to its historical estimates for Libya’s GDP in 2015 and 2016 while increasing the estimate for real GDP in 2017. This led to an estimate of 71% real GDP growth for 2017 compared to the 55% growth forecast made in October. These wild revisions in estimates speak to the difficulties involved given the scarcity of solid economic data for the country and its total dependence on oil exports.</p>
<p>A notable downward revision in Ghana’s 2018 growth projection saw the West African nation conceding the title of the fastest-growing SSA economy to its East African counterpart Ethiopia – these were also the two fastest growing economies in the region in 2017, according to IMF estimates. A slowdown in industrial output due to maintenance work at the Jubilee oil field coupled with indications of a smaller cocoa crop this season have resulted in a 2.6 percentage point reduction in the country’s 2018 growth forecast, now set at 6.3%.</p>
<p>Mozambique saw its growth projection drop from 5.3% in October to the latest figure of just under 3%. The country continues to struggle with elevated real interest rates, while the decision by creditors to reject all the government’s debt restructuring proposals in March has sustained a smog of uncertainty over the country’s economic future.</p>
<p>Sierra Leone, Lesotho and Namibia all saw notable downward revisions in their 2018 growth forecasts.</p>
<p><img loading="lazy" decoding="async" class="alignnone size-full wp-image-304778" src="http://cnbc.africa/wp-content/uploads/2018/04/Africa-IMF.png" alt="" width="416" height="227" /></p>
<p>Stronger growth in Africa’s largest economies bodes well for the continent’s economic prospects as a whole.</p>
<p>South Africa, Nigeria and Egypt are regional growth drivers for Southern, West, and North Africa, respectively, and the health of these larger economies has direct bearing on growth prospects in their smaller neighbours.</p>
<p>It should be noted that the improvement in growth prospects for Nigeria and Angola is largely due to stronger oil prices, while South Africa’s expected recovery is still largely based on sentiment.</p>
<p>Nigeria still has much to do to diversify its economy away from its oil sector to improve economic resilience. In turn, South Africa’s political landscape has undoubtedly seen some improvement of late, but this positive sentiment still has to translate into actual progress on the economic front.</p>
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The IMF has altered its outlook on Africa, this is what’s changed

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<p>Finance ministers and central bankers from around the globe are in Washington this week for meetings of the IMF and World Bank. CNBC spoke to the SARB&#8217;s Governor, Lesetja Kganyago about the impact that the political changes have had on SA.</p>


SA’s political changes boosted economic, consumer confidence – Kganyago

<p>LUANDA (Reuters) &#8211; Angola’s finance ministry said it had requested non-financial assistance from the International Monetary Fund to help it implement economic reforms, as Africa’s second-largest crude producer continues to suffer from a lower oil price.</p>
<p>The agreement, known as a Policy Coordination Instrument, “will help to improve the external credibility of our country with positive impact on the ability to attract Foreign Direct Investment,” the finance ministry said in a statement late on Tuesday.</p>
<p>The ministry said it wanted help in implementing the Macroeconomic Stabilisation Plan, which is effectively the economic policy of the new Angolan government, but did not say what form this should take.</p>
<p>President João Lourenço, who took over last September after 38 years of rule by José Eduardo dos Santos, has said he wants to bring about an economic miracle in Angola by opening up to foreign investment and diversifying away from oil which accounts for over 90 percent of exports.</p>
<p>Lourenço is trying to resolve a dollar liquidity squeeze that has made it difficult for foreign companies to repatriate profits and discouraged many from investing in sub-Saharan Africa’s third-largest economy. On the streets of Luanda, a dollar goes for nearly twice the official rate.</p>
<p>A devaluation of around 30 percent to the dollar this year has gone some way to closing the gap with the street rate.</p>
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<p>Angola has been trying to persuade international banks to rekindle dollar correspondent relationships with the country, which were cut over the past few years due to perceived compliance risks in doing business there.</p>
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<p class="content_27_rw">Reporting by Stephen Eisenhammer; Editing by Alexander Winning and David Stamp</p>
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In search of an ‘economic miracle’ Angola taps into the IMF

<p>WASHINGTON (Reuters) &#8211; Global growth will keep a steady pace this year and next, buoyed by stronger trade and U.S. fiscal stimulus that will fade by the early 2020s, while increased tariffs could damage market confidence and output, the International Monetary Fund said on Tuesday.</p>
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<div class="container_1tVQo" tabindex="-1">The IMF, in its latest World Economic Outlook, kept its 2018 and 2019 global growth forecasts unchanged at 3.9 percent for both years after upgrades in January.</p>
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<p>The projections were released as thousands of global finance officials were gathering in Washington for the IMF and World Bank spring meetings this week.</p>
<p>The IMF said it raised its U.S. growth forecast by 0.2 percentage point for both years, to 2.9 percent for 2018 and 2.7 percent for 2019. It said lower U.S. corporate income tax rates and accelerated investments due to a temporary tax break would boost U.S. growth through 2020, but these effects would then reverse quickly, causing a slowdown.</p>
<p>Ghana has lost its pole position as the fastest growing economy in Africa to Ethiopia. The IMF expects the West African nation&#8217;s economy to grow 6.3 percent this year, whilst Ethiopia&#8217;s growth is forecast at 8.5 percent.</p>
<p>Africa&#8217;s largest economy Nigeria, is expected to expand 2.1 percent this year whereas the continent&#8217;s most advanced economy, South Africa&#8217;s growth is expected at  1.5 percent, from 0.9 percent forecast three months ago.</p>
<p>“Global growth is projected to soften beyond the next couple of years,” the IMF said in the report, adding that advanced economies would be “held back by aging populations and lackluster productivity.”</p>
<p>The Trump administration has maintained that Republican tax cuts passed last year would allow the United States to maintain sustained gross domestic product growth above 3 percent for years and defy forecasts that U.S. budget deficits will balloon over the coming decade.</p>
<p>For now, the IMF said increased export demand was contributing to slight growth forecast upgrades for the euro area and Britain for 2018, while the IMF kept its forecasts unchanged for Japan, China, India, Russia and Mexico.</p>
<p>Forecasts were cut slightly for Canada, the Middle East and North African countries, as well as a number of low-income developing countries.</p>
<p>The IMF said prospects for developing economies to grow per-capita incomes face difficult prospects over the next five years, especially in commodity-exporting countries in the Middle East, sub-Saharan Africa, Latin America and the Caribbean.</p>
<p>Risks to the global growth forecasts were broadly balanced for the next few quarters, with the potential for stronger business profits to increase hiring and investments that could boost productivity, the IMF said.</p>
<p>But trade tensions, such as the United States and China’s recent dueling tariff announcements, could take a direct toll on trade and economic activity and also cause financial market turmoil that would tighten financial conditions and hurt confidence.</p>
<p>“An increase in tariffs and nontariff trade barriers could harm market sentiment, disrupt global supply chains, and slow the spread of new technologies, reducing global productivity and investment,” the IMF said. “Greater protectionism would also lower consumer welfare by making tradable consumer goods more expensive.”</p>
<p>Research from 2016, the IMF said, showed that tariffs or other barriers that led to a 10 percent increase in import prices in all countries would lower global output and consumption by about 1.75 percent after five years and close to 2 percent in the long term. Global trade would fall 15 percent after five years and 16 percent in the long run under such a scenario, it said.</p>
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<p class="content_27_rw">Reporting by CNBC Africa and David Lawder; Editing by Leslie Adler</p>
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<div class="trustBadgeContainer_1gqgJ"><span class="trustBadgeTitle_7sKLj">Our Standards:</span><span class="trustBadgeUrl"><a href="http://thomsonreuters.com/en/about-us/trust-principles.html">The Thomson Reuters Trust Principles.</a></span></div>


Ghana has just been knocked out of pole position as Africa’s fastest growing economy

<p>KIGALI (Reuters) &#8211; Rwanda’s President Paul Kagame appointed Uzziel Ndagijimana as finance minister in a cabinet reshuffle, his office said.</p>
<p>Kagame swept to a landslide victory in a presidential election last year, securing a third term in office and extending his 17 years in power.</p>
<p>Late on Friday, he promoted state minister of finance Ndagijimana to replace Claver Gatete as finance minister, the office of the presidency said.</p>
<p>Gatete, a previous central bank head credited with overseeing a period of relative monetary stability, was named minister for infrastructure.</p>
<p>The economy has been rebuilt with a focus on technology, mining, tourism and agriculture following the 1994 genocide of 800,000 ethnic Tutsis and politically moderate Hutus.</p>
<p>Growth rates have averaged 5-6 percent over the last decade. This year, the International Monetary Fund expects its economy to expand by 7.2 percent.</p>
<div>In another move, Kagame named Yvonne Manzi Makolo as chief executive of the national carrier RwandAir. The airline sacked its previous head in April last year.</div>
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Reporting by Clement Uwiringiyimana; Editing by Aaron Maasho; Editing by Janet Lawrence</p>
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Rwanda’s President Kagame appoints new finance minister, reshuffles cabinet

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<p>In March this year, Kenya agreed to review the interest rates capping law as treasury and Central Bank officials pushed for an extension of the $1.5million precautionary facility by the International Monetary Fund.</p>


Kenya set to abolish law on interest rates cap

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<p>Ghana&#8217;s finance Minister recently indicated plans to hit the international market to raise about $1.5 billion dollars by the end of April. Meanwhile, in a bid to check the country&#8217;s debt stock, IMF advised the government to cut the target to $500mn.</p>


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The IMF has altered its outlook on Africa, this is what’s changed

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Ghana has just been knocked out of pole position as Africa’s fastest growing economy

Rwanda’s President Kagame appoints new finance minister, reshuffles cabinet

Kenya set to abolish law on interest rates cap

IMF advises Ghana to check debt stock

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