Economic News & Views on Africa
Economic Update
With global aviation passenger numbers rebounding, emerging markets are looking to capture market share through increased investment and sustainable aviation fuels (SAFs).
As OBG reported in February, tourism figures rebounded in 2022, thanks to the easing of Covid-19-related restrictions and increased investment in tourism. The sector’s recovery is set to continue, with international tourist arrivals likely to reach 85-90% of pre-pandemic levels in 2023.
Revenue is also on the upswing for the global aviation industry after...
Economic Update
As the EU works to rebalance its gas supply away from Russia, African countries are expected to gain a larger share of the bloc’s liquefied natural gas (LNG) market in the coming years.
Last month the EU announced that it would launch the first tenders for joint gas purchases in April, with contracts expected to be signed by June. This novel approach seeks to leverage the bloc’s purchasing power to secure supplies at lower prices ahead of the summer when EU countries are expected to refill their underground gas storage...
Economic Update
Emerging markets are capitalising on commercial drone technology to overcome logistics challenges and revolutionise supply chains for many goods and services, with expected benefits for last-mile delivery.
While unmanned aerial vehicles (UAVs) are often associated with military usage, commercial UAV usage has grown substantially in recent years as e-commerce and logistics companies increasingly look to drones to enable more efficient delivery.
Research firm GlobalData predicts that commercial drones will replace...
Economic Update
Côte d’Ivoire agriculture sector, which accounts for roughly one-fifth of GDP and employs two-thirds of the population, is a core sector of the economy with global significance.
The country is a key exporter of cocoa, cashew nuts, palm oil, bananas, coffee, rubber, kola nuts and cotton. Côte d’Ivoire is the world’s leading cocoa producer and shares the title of number-one cocoa grinder with the Netherlands. It is also the top cashew nut exporter and was the leading producer of sweet bananas in 2017...
CEO Survey Analysis
While the recovery period following the Covid-19 pandemic saw the unlocking of major capital in emerging markets, inflationary pressures, fluctuating commodity prices and geopolitical concerns have since tempered the global economic outlook for 2023. Balancing opportunity and risk has become a priority for shareholders and investors, but emerging markets have remained resilient. Some regions, such as the Gulf, are looking to funnel elevated hydrocarbons revenue into sustainable mega-projects, whereas leaders in Asia...
Economic View
On leveraging economic zones to bolster development
Economic Update
Even as global funding levels drop, agri-tech start-ups remain a key driver of investment in emerging markets as they work to make farming greener, more productive and more climate resilient.
Global investment in agri-tech start-ups totalled $10.6bn in 2022, down 13% from 2021 – a record funding year for global start-ups – but ahead of the 2020 figure of $7bn. This matched a general downwards trend in venture capital activity, as investors became more cautious amid global headwinds and deepening fears of recession...
Economic Update
With EU bans on Russian oil and oil-product exports set to go into effect this year in response to Russia’s ongoing war in Ukraine, emerging market producers are poised to gain larger shares of an evolving market.
EU bans against Russian oil products such as diesel were rolled out earlier this month, following bans on Russian seaborne crude oil exports that began last December.
Last week, Patrick Pouyanné, CEO of France’s TotalEnergies, said that there is “no longer a unified oil market… With all these bans, we are creating...
Economic Update
As the global industrial sector seeks to shrink its carbon footprint, a number of MENA countries are investing in green steel production to capture market share and help meet emissions targets.
Despite generating 20% of global greenhouse gas emissions, industry has been slow in adopting carbon-efficient manufacturing technologies. Steel is the manufacturing segment with the largest emissions, accounting for 7% of global emissions annually due in part to a reliance on coal to heat smelting furnaces...
Economic Update
On the back of the economic fallout of the Covid-19 pandemic, Botswana is seeking to accelerate economic transformation plans, with a focus on private sector investment and diversification.
As in most countries the world over, Covid-19 had a significant impact on Botswana’s economy. In a country where diamonds made up 80-85% of export earnings before the pandemic, factors such as border closures, disrupted supply chains and the global economic downturn led to a 30% decline in rough diamond sales at the...
