With all the discussion about the sustainability of currency unions lately, I thought it would be appropriate to see how developments in the eurozone and elsewhere were impacting Africa. Although few people may realise it, there are no less than 14 West African economies sharing a common currency, the CFA franc, which is in turn [Read more...]

Riskwatchdog recently attended a Bloomberg Africa focus day where several speakers discussed the potential offered by the African consumer in a challenge to the often-held view that the continent is a pure resource play.
My colleagues in the Africa team at BMI are equally excited by the prospects for private consumption growth over the coming [Read more...]

There will be two important growth drivers for this: Biofuels and livestock. As alternative energies become more popular, corn (which is used to create bio-ethanol in the US and some other countries) production will require increases, particularly since some governments (notably South Africa) have already implemented plans for increased bio-fuel content in gasoline.

Another important growth [Read more...]

My colleagues at BMI inform me that Liberia is ‘one to watch’ in Sub-Saharan Africa. It has bright economic prospects, thanks to sound macroeconomic policy, burgeoning investment in the mining sector and forthcoming debt relief.

The Liberian economy demonstrated resilience amid the global recession, boding well for its future prospects. BMI estimates that real GDP growth [Read more...]

The shift in economic power from west to east and from north to south is ongoing. The importance that Africa will play in this given its natural endowments and growing domestic consumer markets means that the need for a regional financial and services centre has arisen. Risk Watchdog attended a conference in March, where among [Read more...]

Having lagged much of the global rally that kicked off in March 2009, Sub-Saharan African equity markets are at long last beginning to perk up. Interestingly, the major markets are also moving with a much greater degree of correlation than in previous years, suggesting that they are creeping onto the collective radar of international investors.

On [Read more...]

BMI’s Africa team cautions that political risk in Sub-Saharan Africa may be on the rise as a full-blown leadership crisis continues to escalate in Nigeria. Alan Cameron and Lisa Lewin provide some insight into an increasingly tense political situation, sharing their views on potential outcomes from the ongoing crisis. The next couple of weeks and [Read more...]

 

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