As the global economy begins to advance on surer footing, Africa’s economies face an important test. Some will be buoyed by the creeping rise in commodity prices. But this could be partially offset by rising interest rates in Western economies.
These will both increase the cost of foreign currency debt-servicing for African governments and corporate, and make high-risk investments in Africa less appealing to foreign investors. In the last three-to-four years, the reform narrative in Africa has felt more committed, amid efforts to diversify economies away from commodity-dependence, broaden the tax base and increase capital expenditure.
Yet implementation has been patchy, politics has often smothered progress, and there are growing concerns as to the sustainability of spending plans as African debt comes back on the rise.
In The African Year in 2018, we explore some of the prominent trends being witnessed in African politics and the economy. We also take a quick look at five key markets (Nigeria, South Africa, Kenya, Tanzania and Zimbabwe) which we feel face notable challenges in the year ahead.
Read full report here: THE AFRICAN YEAR IN 2018
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