Africa Podcast Network

The International Monetary Fund warned that the global economy is entering 2022 in a weaker position than previously expected as it downgraded its global growth outlook largely due to clouds gathering over the recoveries in the United States and China. The IMF’s latest World Economic Outlook calls for the global growth to downshift from 5.9 per cent in 2021 to 4.4 per cent this year. The Fund saw the US economy growing 4.0 per cent this year while China’s economy grew 4.8 per cent this year thanks to the country’s business-sapping, zero-tolerance COVID-19 policy, and ongoing stress in its heavily indebted property sector.

Microsoft Corp exceeded analysts’ expectations for second-quarter revenue on Tuesday, propelled by strong demand for its cloud-based services from more businesses migrating to hybrid work models due to the coronavirus pandemic. Microsoft has become one of the most valuable companies in the world by betting heavily on corporate software and services, especially its cloud services and the movement to the web of its Outlook email and calendar software, known as Office 365. Revenue from Microsoft’s biggest segment, which offers cloud services and includes Azure, its flagship cloud offering, rose 26 per cent, while the business that houses its Office 365 services increased 19 per cent in the quarter.

US President Joe Biden says he would consider imposing economic sanctions personally targeting Vladimir Putin if the Russian president orders a new attack on Ukraine. British Prime Minister Boris Johnson urged European allies to have sanctions ready to go if Russia invades Ukraine. Russia has amassed some 100,000 troops within reach of Ukraine’s border but denies planning an invasion. Instead, it has cited the Western response to its military buildup as evidence that Russia is the target of aggression.

The Reserve Bank of Zimbabwe held a crisis meeting with captains of industry on Monday at which they pledged a commitment to work closely in curbing the parallel market exchange rate volatility. The central bank governor, John Mangudya says both parties acknowledged the positive economic achievements made so far which include year on year inflation reduction to end the year at 60,7% from 348,6% recorded in 2020 with local manufacturing production going to 80% of products on the market were locally produced. Mnagudya says the Bank should continue fighting inflation through restrictive monetary policy and building foreign exchange reserves as a way of augmenting the defence of the value of the local currency.

Kenyan growers and exporters dealing in the avocado export business face an indefinite ban on the export of Hass and Fuerta varieties. Kenya Agriculture and Food authority director, Benjamin Tito noted that the ban, which took effect on November 15, 2021, is aimed at curbing the harvest and export of immature avocados. The food regulator noted the ban will remain in effect in order to control the export of immature avocadoes which have negatively impacted the image of the commodity in overseas markets. It further warned that exporters who use marketing agents without valid registration permits shall have their licenses revoked.

Prime Minister Mostafa Madbouli has expressed Egypt's keenness on reaching a legally-binding agreement for filling and operating the Grand Ethiopian Renaissance Dam to achieve the interests of all parties through striking a balance. Madbouli says Egypt showed interest in resuming negotiations at the nearest chance with the aim of finding solutions to points of technical and legal differences and finding a fair and balanced agreement taking into consideration Egypt's water scarcity and its dependence on the Nile as the main water resource. He says that Egypt always gives priority to achieving development in Nile basin countries, so it offered assistance to sisterly countries to provide stability for their peoples.

President Muhammadu Buhari launched the national policy on 5G for Nigeria’s digital economy, with a clear directive to all the security agencies to immediately leverage the technology to enhance security in the country when it has been deployed. President Buhari also allayed fears over health safety of 5G, affirming that such issues had been effectively addressed in developing a policy that suits the country. The president stressed that it would support virtually every sector of the economy, including enhanced connectivity, improved healthcare, support for education while fostering smart cities, and boosting agriculture, among other advantages.

The Central Bank of Nigeria’s Monetary Policy Committee retained the Monetary Policy Rate at 11.5% and kept all other parameters unchanged. CBN Governor Godwin Emefiele made the announcement while addressing journalists at the bank’s headquarters in Abuja. Lowering the rate could have stimulated more borrowing while raising the rate could have signalled the CBN’s intention to reduce the economy’s money supply.

The Federal Government will outline its policy position for the marginal field bid round to eligible awardees who have fully or partly complied with signature bonus payment in the 2020 marginal field programme. It says the policy position would be made public at a forum being planned by the Nigerian Upstream Petroleum Regulatory Commission in Abuja. It says all eligible awardees and relevant international oil companies associated with the MFBR were expected to attend the meeting.

The International Monetary Fund has retained its 2022 growth forecast for Nigeria at 2.7 per cent and increased the 2023 projection by 0.1 per cent to 2.7 per cent. The IMF had in its October report last year projected a 2.7 per cent growth rate for 2022 and 2.6 per cent for 2023. The IMF downgraded its growth forecast for sub-Saharan Africa to 3.7 per cent and 4.0 per cent for 2022 and 2023 respectively from 3.6 per cent and 3.9 per cent forecast in its October 2021 WEO report. The IMF also reduced its forecast for global economic growth to 4.4 per cent in 2023, representing 0.5 percentage points lower than the 4.9 per cent projected in October.