Africa from the inside has been saved
Africa from the inside
A Deloitte view on topical issues, changes, developments in Africa and what these would mean for our clients with interests in these jurisdictions
Spotlight on Africa’s Growth Model: Global Economy
There has been a heightened sense of pessimism and systemic risk in the global economy in the first few weeks of the year. From a developed world view, the global recovery may be stalling. From an emerging markets one, it appears that we are descending back into crisis, this time not so much from a financial shock as a slow-motion structural decline.
What then lies ahead for the global economy in 2016?
Spotlight on Ghana: Investment destination for retail business
The economic tailwinds in recent years that supported Ghana’s emergence as an attractive investment destination for retail have now become headwinds. Rising inflation, interest rates, an overestimation of the country’s emerging middle class and the sharp depreciation of the local currency are making life more difficult for retailers who have set up shop in Ghana.
Spotlight on China in Africa: China’s rebalancing spells changes for Africa’s business model
For Africa, the China-enabled “golden growth decade” has passed. As China rebalances, so must Africa. As it is important to realise that there will never be another China and the disruptive and enabling impact it has had on commodities markets and resource-driven economies will not be repeated, a new growth model will need to be sought, and fast.
Spotlight on Nigeria: Government tightens regulatory reins
The global oversupply of petroleum products and the slowdown of the global economy has caught many oil-producing countries but also some investors by surprise. As Africa’s largest oil producer, Nigeria’s growth outlook and fiscal position have been implicated negatively by ‘half-priced’ oil. In its most recent forecast for Nigeria, the IMF cut the country’s 2015 GDP growth rate from 4.5% to 4%, in contrast to actual growth of 6.3% in 2014.