Africa's Economic Growth Remains Weak, Ethiopia Bucks the Trend with 5.9pc Forecast


Africa's Economic Growth Remains Weak, Ethiopia Bucks the Trend with 5.9pc Forecast

Africa's economic growth is anticipated to remain sluggish, experiencing only a marginal increase to 3.5pc in 2024, according to the latest World Economic Situation & Prospects report released by the UN. In a positive contrast, Ethiopia stands out with a forecasted growth of 5.9pc. The report underscores the necessity for increased efforts in revenue collection to ensure sustainable economic growth. At the launch of the report hosted at the United Nations Economic Commission for Africa, Adam Elhiraika, the director of the Macroeconomic Policy Division, emphasised the importance of seizing opportunities presented by the fourth industrial revolution, particularly with the rise of artificial intelligence. He highlighted the significance of establishing clear goals for borrowed funds allocation before African countries undertake substantial loans. It raises concerns over central banks navigating between inflation, growth, and financial stability. The uncertain monetary tightening orientation of the United States Federal Reserve and the European Central Bank adds to the issue. Global factors such as slower economic growth, tightening monetary conditions, and elevated inflation further complicate the growth outlook for developing countries. The rising borrowing costs and debt burdens faced by these nations underscore the need for prudent financial management. Ethiopia's debt burden, estimated at just below 40pc of GDP, is notably lower compared to other African countries such as Egypt (above 80pc), Kenya (a little over 60pc) and Zambia (undergoing debt restructuring negotiations with a 99pc debt-to-GDP ratio).


Radar

ZamZam Bank Joins Commodity Exchange Payment System

The pioneering full-fledged interest-free commercial bank, ZamZam Bank, has become the 24th financial institution to join the Ethiopian Commodity Exchange's (ECX) payment system. CEO of the Exchange Wendemagegnehu Negera signed the deal with the President of the Bank Melika Bedri last week. According to the CEO, joining the platform which has around 11,000 accounts registered and has transacted over 386 billion Br so far, will allow a reliable mechanism whereby traders can be certain that pay...


Radar

AfDB, ADF to Chart Transformation Path at Diamond Jubilee

The African Development Bank (AfDB) and the African Development Fund (ADF) are gearing up for a major joint meeting in Nairobi, Kenya, expected to draw around 4,000 participants. The event, taking place at the Kenyatta International Conference Centre in late May, will focus on "Africa's Transformation," a theme reflecting the continent's ongoing pursuit of economic and social development. "Despite progress over the years, Africa's transformation remains incomplete," said Vincent O. Nmehielle...


Radar

Big Art Sale Returns to Addis

The annual Big Art Sale returns to Addis Abeba this weekend. Over 100 artists are expected to showcase their original works and prints at the Hilton Addis. What's Out Addis in partnership with the Hilton Hotel is behind the event that showcases the works of over 100 artists. Big Art Sale has been around for the past 18 years showcasing paints and prints. According to organisers, it offers a chance to meet the artists and enjoy a variety of art forms with a dedicated Kids' Corner and food and...


Back
WhatsApp
Telegram
Email