The West African cocoa sector is still feeling the pain from lower revenues over the past two years, which is motivating Ghana and Cote d’Ivoire to consolidate their markets; however, implementation of such plans will be hampered by serious financing concerns and lingering local content regulations.
Western donors are suspending budgetary support to Zambia’s government due to concerns over financial mismanagement, thus straining debt servicing ability and casting into doubt ongoing project finance deals.
In the first six months of its administration, the new government had taken a measured and pragmatic approach to pursue internal and external peace, enhanced political pluralism, and economic privatisation, yet remains challenged by both socio-political and institutional pressures.
The ongoing contract frustration experienced by telecoms firm MTN in Nigeria and the threat of punitive action against banks such as HSBC are highly indicative of intensifying populist and politically motivated rhetoric against foreign investors ahead of next year’s elections.
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.
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.
Incomplete data on farm attacks are facilitating the politicisation of the issue by lobby groups and political parties, even though a review of available statistics shows a downward trend in attacks and murders over the past 16 years.
One year into its administration, Angola’s new government turns to the IMF seeking a three-year extended facility that will test the boundaries of its reformist credentials and potentially boost the country’s investment reputation.
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.
- BURKINA FASO: EXPAT KIDNAP RISKS RISE AS HARSH COUNTER-TERRORISM TACTICS FAIL
- GHANA/COTE D’IVOIRE: SERIOUS CHALLENGES EMERGE TO COCOA SECTOR CONSOLIDATION
- MADAGASCAR: PRESIDENTIAL ELECTIONS TO PROCEED IN TENSE POLITICAL CLIMATE
- SPECIAL REPORT: IS SOUTH AFRICA HEADED TOWARDS A VAUNTED ‘TRIPLE-JUNK’ STATUS?
- ZAMBIA: UNCOVERED FRAUD MAY BE JUST ‘THE TIP OF THE ICEBERG’