The European Business Council for Africa

The Nigeria Development Update (NDU) is a World Bank report series produced twice a year around Spring and Fall. The NDU assesses recent economic and social developments and prospects in Nigeria, and places these in a longer-term and global context. It also provides an in-depth examination of selected economic and policy issues and an analysis of Nigeria’s medium-term development challenges. It is intended for a wide audience, including policy makers, business leaders, financial market participants, and the community of analysts and professionals engaged in Nigeria’s evolving economy.

The European Investment Bank (EIB) has published a series of Working Papers based on the findings of their MENA Enterprise Survey Report. The series covers subjects covering, inter alia, corporate ESG responsibility practices, green investment, digitalisation, MSMEs and human capital in Africa. These papers are in support of the report: Unlocking sustainable growth in the Middle East and North Africa private sector.

The Enterprise Surveys, conducted by the EIB, EBRD and the World Bank, provide insight into what lies beneath the region’s relatively slow growth, with a focus on the reasons for stagnating productivity and inadequate accumulation of human and physical capital in the private sector.

The Horn of Africa (HoA) is characterized by the paradox of being both integrated and isolated. The bonds of togetherness run deep among HoA countries, especially in the transboundary areas. Manifested through active pastoralist cross-border movements, market networks and trade, dynamic movement of people, and the shared impacts of shocks and stressors, the invisible bonds that exist between and in groups and communities in transboundary areas are at the core of the region’s growth and developmental potential. Despite the strong linkages in the region, there is also vulnerability and isolation. Regional integration remains challenging among countries with dissimilar resources and geometries. They face similarconstraints of high poverty levels, food insecurity, weak formal institutions, lack of or inconsistent implementation of regulations and policies, insufficient knowledge and data, conflicts over identity, resource control, and representation, and dissonance between formal and informal institutions and forced displacement, among others.

More than a decade after the Arab Spring, the Middle East and North Africa (MENA) region finds itself facing momentous challenges. The coronavirus pandemic has disrupted economies and the Russian invasion of Ukraine sent shockwaves through the region, with higher hydrocarbon prices, risks to food security, and lower tourist arrivals. Beyond lies the looming threat of climate change. But challenging times provide opportunities for positive change. The region’s private sector can seize this moment. It remains the hope for many young people for their future and has the potential to drive a greener region with a sustainable model of growth.

A new report from Endeavor Nigeria shows that Africa’s technology ecosystem is set for a period of exponential growth, accelerated by strong market fundamentals and the impact of the COVID-19 pandemic.

The report, titled “The Inflection Point: Africa’s Digital Economy Is Poised To Take Off”, reviewed key events in Africa’s technology ecosystem from the last few years, identified patterns (especially in the context of other technology ecosystems across the world), and offers a roadmap to successfully navigate the opportunities that are emerging. According to the report, which drew on multiple sources, including analysis from McKinsey & Company, Africa’s digital economy is approaching its S-curve, a period of rapid, significant growth that will positively impact the continent’s GDP, job creation, and overall economic outlook.

Since 2011, the African Development Bank has produced yearly editions of its Annual Development Effectiveness Review (ADER), a publication that assesses the Bank’s overall contribution to development results in Africa. The ADER is complemented by a series of reviews that cover the African Development Bank’s activities in its regional member countries.

This country results brief is part of a series of summary reviews that examine ongoing operations in individual regional member countries. The African Development Bank appreciates the high level of dialogue it held with Ghanaian authorities during the preparation of several programming and project documents that fed into this review—a collaboration that testifies to the quality of the partnership between our institution and African countries.

International tax reforms and sustainable development.

The United Nations Conference on Trade and Development (UNCTAD) has published its world investment report for 2022. Looking specifically at the continent of Africa, this report analyses the gain in FDI inflows experienced and how the commodity and natural resource rich countries in Africa have profited from the recent crises and the push for resources necessary to achieve energy transition.

Global flows of foreign direct investment recovered to pre-pandemic levels last year, reaching $1.6 trillion. Cross-border deals and international project finance were particularly strong, encouraged by loose financing conditions and infrastructure stimulus. However, the recovery of greenfield investment in industry remains fragile, especially in developing countries.

GSMA has published a report on the state of the mobile money industry. With digital finance and the mobile banking sector growing rapidly and becoming an increasingly important sector in Africa, this report is necessary reading.

Over the last decade, we have seen the transformative power of mobile money in providing a pathway to financial inclusion. Yet, our work is far from over. As economies build back from the COVID-19 pandemic, we must ensure that mobile money helps everyone have access to the tools they need to weather economic storms, build financial health and participate in an inclusive recovery.

S&P Global have published a report on how the food shock currently being felt all over the world, especially in Africa, is set to last for years and not just months.

Key takeaways:

  • Rising food prices and diminishing supplies will last through 2024 and possibly beyond, in
    our view.
  • Fertilizer shortages, export controls, disrupted global trade, and escalating fuel and
    transport costs will all exert upward pressure on the cost of staples.
  • Our analysis shows low and low-to-middle income countries in Central Asia, the Middle
    East, Africa, and the Caucasus could be worst hit by the first-round impact.
  • The food shock will drag on GDP growth, fiscal performance, and social stability, and
    could lead to rating actions, depending on the response by governments and
    international organizations.

Russia’s invasion of Ukraine and its effects on commodity markets, supply chains, inflation, and financial conditions have steepened the slowdown in global growth. One key risk to the outlook is the possibility of high global inflation accompanied by tepid growth, reminiscent of the stagflation of the 1970s. This could eventually result in a sharp tightening of monetary policy in advanced economies, which could lead to financial stress in some emerging market and developing economies. A forceful and wide-ranging policy response is required to boost growth, bolster macroeconomic frameworks, reduce financial vulnerabilities, and support vulnerable groups.