The newly elected president has consolidated his political authority through shaking up the cabinet, while he is sending a reformist message to creditors that he will prioritise growth as a mechanism for development, beginning with measures to stabilise the country’s precarious fiscal and monetary positions.
A booming economy and improved governance are creating fresh opportunities for project finance deals. While the economic and financial outlook is relatively strong, there are emerging concerns over political patronage and contract discrimination under the current administration.
Desperately searching for fresh funds to service its mounting debt burden, the cash-strapped government has stopped paying public salaries and repaying VAT rebates to mining firms, while offering state assets as collateral for new loans.
The new government will seek international re-engagement, political conciliation, and economic recovery, while taking a measured approach, prioritising less disruptive policy, and personnel changes and gradually moving toward more comprehensive change.
Despite a political agreement between the government and opposition, political, industrial, and labour disputes will continue to drive high risk of disruptive and potentially violent protests across the country.
The future of Zimbabwe’s political stability and the country’s significant investment potential rest on the outcome of a judicial challenge to last month’s disputed elections and the respective parties’ reaction to any verdict.
On the one year anniversary of Angola’s political transition, there are growing indications that initial investor optimism has waned due to a persistently weak economy, rising debt levels, and fresh allegations of state corruption.
The opposition has threatened to resume mass protests in retaliation for the government’s perceived contravention of key tenets of an ECOWAS-brokered political deal, yet any further unrest is unlikely to cause previous levels of commercial disruption.
Policy uncertainty ahead of next year’s elections, mounting concerns over debt sustainability, and rising fuel prices are likely to mar Namibia’s economic recovery and drag down the economy’s growth outlook.
The governing party will support a constitutional amendment to clarify expropriation of land without compensation in order to limit divisive politicisation and to manage public expectations. Any land reform agenda would prioritize idle state-owned land near urban settings for low-income housing purposes, and idle farmland for agricultural purposes.
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- EXX Africa assesses the potential economic impact of the #Kenya terror attacks in #Bloomberg
- AFRICA INVESTMENT RISK REPORT 2019
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