Happy New Year

January 3, 2014 rachel_eaton

Isabelle Alenus-Crosby

The good news is that Africa’s economic outlook for 2014 remains promising with an overall projected growth of 5.3%. Should the global economy recover faster than predicted, then sub-Saharan Africa’s economy might expand by as much as 6.0% according to the IMF. This is consistent with the average long-term trend growth rate of approximately 5.5% between 2000 and 2010.

According to the World Bank, an economic rebound would also scale up investments in much-needed infrastructure (physical and economic) which will lead to policy reforms that will improve the overall business environment. In addition, African market performances in 2013 have proven that investments into Africa can continue to offer a sound return. Investment levels are expected to remain buoyant (again according to the World Bank), with private investments expected to double in areas such as consumption and infrastructure.

Happy New Year indeed!

Insight

Mandela – Hero of Africa’s booming economy

December 11, 2013 rachel_eaton

Isabelle Alenus-Crosby

At Nelson Mandela’s memorial yesterday, President Obama hailed the former South African President as “the last great liberator of the 20th century”.

He is also being remembered for the formidable role he played in building up Africa’s largest economy. Mandela famously believed in the link between economic and political progress, and as a result, South Africa’s gross domestic product grew from less than 1.5 % from 1980 to 1994 to almost 3 % from 1995 to 2003. South Africa is now proudly the “S” in BRICS, and its economy is still going strong 20 years after Mandela first came to power.

Aside from all this, Mandela ensured that South Africa became an important source of economic opportunity for its neighbouring countries too. It can be argued that their successes, in turn, influenced the rest of the continent. Mandela was certainly therefore the great liberator of Africa. According to the latest statistics by the IMF, the continent’s economy is projected to have grown by 4.8% in 2013 and accelerate further to 5.3% in 2014. He didn’t merely bring South Africa into the global economy, but was key in making sure the rest of Africa would also thrive one day.

Last but certainly not least, it is important to note the effect that Mandela had on successive generations of investors, who in order to support him in his struggle against apartheid, came to recognize the power of investment to change things for the better, as well as the impact sustainable and responsible investments could have on anything from fighting injustice to empowering women and combating climate change.

Nelson Mandela has therefore left us with resounding legacies and the world is undoubtedly a much better place thanks to him.

Insight

Causing a stir: The fifth BRICS Summit

April 9, 2013 rachel_eaton

Isabelle Alenus-Crosby

The BRICS account for 21% of world GDP (IMF), 17% of world trade, and over 40% of the world’s population. This year, BRICS is expected to grow at almost 5%, well above the world average (at 3.6%).

This year’s summit therefore received quite a lot of media attention, and not just due to the attendance of the brand-new Chinese President Xi Jinping, nor because of the above statistics.

For South Africa, which makes up just 2.5% of total GDP in BRICS, the summit was an opportunity to showcase its role as an investment gateway to Africa and President Zuma therefore invited 15 African heads of state to attend. Tensions between South Africa and Nigeria (surrounding Nigeria’s belief that they should also be part of BRICS) means that President Goodluck Jonathan did not attend, but other heads of state including Angola, Cote d’Ivoire, Senegal, Uganda, Ethiopia and Egypt, did. Each country actively showcased its nation, grabbing the momentum of the African continent’s current economic boom.

What caused the greatest stir however, were the talks about the establishment of a development bank, which would rival the World Bank and the IMF, and is meant to fund infrastructure and development projects in member states and developing nations, through a joint foreign reserves fund.

The discussions of where the bank will be, or how much money each nation will contribute, did not reach a conclusion. Several experts and officials have said the bank will start with 50 billion dollars, divided equally. BRICS members are clearly seeking greater sway in global finance to match their rising economic power. Undoubtedly the “New Development Bank” will be top of next year’s agenda. The 2014 Summit will be held in Brazil.

Archives

Happy New Year

Mandela – Hero of Africa’s booming economy

Causing a stir: The fifth BRICS Summit

Part of The Wilful Group