Nancy Muya OTR, MBA’s Post

Egypt's decision to allow its currency to float and attract investment through currency devaluation has garnered support from international financial institutions like the IMF. While this strategy may provide short-term benefits in terms of increased export competitiveness and investment inflows, it also poses risks, including potential inflationary pressures and increased borrowing costs. #SAR #Africa #EconomicStability #EmergingMarkets #CreditRating #SovereignAfrica #RatingAgency #Investments #Reform #IMF #EnwergySector https://lnkd.in/d6WgEp4g

While it all sounds great Anja, its still not good enough. South Africa's economy has eroded over the past 30 years and FDI is a trickle to what it should be due to bad governance and a systemic corruption running through all parts of the economy. The fact that we still remain at the top of the charts is laudable but imagine where we will be if we fix up energy, corruption and just focus on creating jobs. #anditsdoable #politicalwill

💰💔 The currency crisis in Nigeria is a real economic challenge! In our latest article, we analyze the causes and propose solutions to overcome this crisis. ▶️ Economic diversification, effective financial measures and financial education are the keys to a better future. 🌍🤝 By working together, we can build a more stable economy and improve the lives of all Nigerians. #CurrencyCrisis #EconomyNigeria #SolutionsForTheFuture 🇳🇬✨

Africa’s most industrialized nation—South Africa—will remain the continent’s largest economy. Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year and Egypt, which held the top position in 2023, is projected to fall to second behind South Africa after a series of currency devaluations, International Monetary Fund forecasts show. #southafrica #economy

The fluctuation of Nigeria's currency reflects the country's economic volatility and underscores the need for viable and effective approaches to rejuvenating its economy. Sustained stability requires more than just short-term fixes. It is important to address structural weaknesses and promote sustainable growth. The measures taken must also be advantageous to the majority of Nigerians who are adversely affected by the dismal economic conditions. #NigeriaEconomy #CurrencyFluctuations #IMF #EconomicCrisis https://lnkd.in/ehQGdw-e

Given Ethiopia's reported interest to join the East African Community, this is an important development worth noting. "...The introduction of the SHEAFRA holds immense significance for East African countries. By harmonizing monetary policies and eliminating exchange rate uncertainties, the common currency is poised to enhance economic stability and stimulate intra-regional trade. "Moreover, it will foster a sense of unity and collective identity among member states, bolstering regional cooperation and development initiatives. "Other benefits of the SHEAFRA include: Enhanced Trade Facilitation: The SHEAFRA will streamline cross-border transactions, therefore reducing transaction costs and other current bureaucratic hurdles for businesses within East Africa. Price Stability: With a common currency, member states can mitigate inflationary pressures and promote price stability, hence fostering a conducive environment for investment and growth. Greater Financial Integration: The SHEAFRA will promote deeper financial integration, further facilitating capital flows and investment across East Africa. Increased Competitiveness: By eliminating currency exchange risks, businesses can operate more efficiently, enhancing their competitiveness in both regional and global markets." Update: EAC, through its X (twitter) page, stated that the news on the launching of the single currency is false. Note, however, that it has been a plan of the block to launch the single currency in 2024. #EAC #Ethiopia #CommonCurrency #SHEAFRA https://lnkd.in/eRsguYwt

Ethiopia's Bold Move: Currency Float and its Impact on the Digital Landscape 📉 Currency Float: Ethiopia recently made a pivotal economic move by floating its currency, the birr. This transition to a market-determined exchange rate aims to address foreign currency shortages and attract foreign investment. The immediate impact saw the birr depreciate by about 30% against the US dollar, a significant shift that reflects the underlying demand and supply pressures that had accumulated over years of tight currency controls (Business News Africa) (Business Insider Africa). 🌐 Digital Transformation: This economic reform presents both challenges and opportunities for Ethiopia's burgeoning digital scene. Here are some key impacts: Increased Costs for Tech Imports: The depreciation of the birr makes importing tech equipment and software more expensive. This could initially strain startups and established tech firms that rely on foreign technology (Business News Africa). Boost in Local Innovation: On the flip side, the higher costs of imports might spur local innovation. Ethiopian tech companies may now find more incentive to develop homegrown solutions, reducing reliance on imported technology (Business News Africa). Foreign Investment: The floating currency is expected to attract foreign investors by providing a more transparent and predictable exchange rate environment. This can lead to increased funding and support for digital startups, potentially accelerating the growth of Ethiopia's tech ecosystem (Business Insider Africa) (Birr Metrics). Digital Payment Systems: The reform can enhance the digital payments landscape by integrating more with international financial systems. This would facilitate smoother transactions for e-commerce and digital services, making it easier for Ethiopian businesses to engage in global trade (Business Insider Africa). Economic Stability and Growth: With expected support from the IMF and World Bank, including a significant $10 billion funding package, the overall economic stability could improve, creating a more conducive environment for digital business growth (Business News Africa) (Business News Africa). Ethiopia’s decision to float its currency is a bold step towards economic liberalization. While there are immediate challenges, the long-term prospects for the digital scene look promising as the country navigates through these transformative changes. 🚀 #Ethiopia #DigitalTransformation #TechInnovation #EconomicReforms #Forex #Investment #CloudbridgeTrainingInstitute #DigitalEthiopia #Africa

Egypt: Bold moves Egypt has taken long-awaited steps to stabilize its currency and return to economic orthodoxy—decisions with implications for investors, according to Franklin Templeton Emerging Markets Equity team. https://lnkd.in/dXJnrAGw

Markets in Sub-Saharan Africa: Prospects for faster growth in the remainder of this decade GHIB- Ghana International Bank Read more here: https://lnkd.in/gV-bbm5V

#analysis: Why Europe is banking on Africa for its big-ticket investments 19/05/2024 The European Union is investing heavily in Africa – pouring half of its global mega budget of €300 billion into projects on the continent. Renewable energy, internet access, transport, vaccines and education are several sectors benefiting from private and public EU funds – an effort that’s being supported by the European Investment Bank (EIB). RFI spoke to vice president Ambroise Fayolle about the bank’s strategy for Africa. https://lnkd.in/e-CtCJA2 #perspective These groups have found themselves between rock and a hard place; which is Africa they must contain, but there currency is losing value no one wants there worthless paper, except Elites intimidated by Collective West. Propaganda aside, East Africa is the fastest growing region in the world, the West is cooking figures, there decline is obvious for all to see. Without investing in Africa Europe understand the risk of Chinese rejection of dollars; the want to flush it, and Africa has space for scale. The West is old; the block is dying; the environment toxic, propaganda no longer works. May 20, 2024 The Association of Southeast Asian Nations (ASEAN) countries are looking to promote local currencies for trade and ditch the U.S. dollar for cross-border transactions. ASEAN consists of 10 countries and their economies are fast developing in the global sphere. This puts the USD under pressure, as several developing countries including the ASEAN bloc are looking to end reliance on the U.S. dollar. https://lnkd.in/eF9v8xNG The fastest growing middle class is in Africa; much as the media is heavily invest in exaggerating risks aimed at targeting regions that are growing, so as to discourage investors from Asia and Gulf countries investors from pulling there money out of London and New York; May 22, 2022 Tanzania’s trade sector grew by 4.3 percent in 2023, with Asian and Southern African Development Community (Sadc) nations emerging as the country’s leading trading partners" https://lnkd.in/eA-sZqsS Western financial architecture weaponized against Africa has collapsed, going forward the West will have to work. The era of free money is over; for instance in a bold statement at the Africa CEO forum, Atiko Dangote, Chairman of the Dangote Group, declared that Nigeria will no longer need to import fuel starting next month, thanks to the capabilities of the Dangote Refinery. Nigeria spends at least $10bn annually on the import of Petroleum; Nigerian refinery is already distributing diesel and aviation fuel and aims to fulfill the petroleum needs of west Africa and the Aviation fuel demands of Africa.