VENTURES AFRICA –
On Tuesday, 9th November 2016, the world was stunned by the victory of Donald Trump as president of the United States of America. During Trump’s campaigns, he made several racist comments about Africans, which included threats to send Africans away from America if he becomes president. This has led many to ask how his victory is going to affect Nigeria’s economy and her trade relationship with the US.
In an interview with Ventures Africa Anointing Momoh, a Research Associate at Centre for the Study of the Economies of Africa (CSEA) highlighted the potential impacts of Donald Trump’s on Nigeria’s economy:
VENTURES AFRICA –
The Governor of the Central Bank of Nigeria, Godwin Emefiele, has finally unveiled the flexible exchange rate policy. This comes barely two weeks after he announced at the Monetary Policy Committee meeting that he was going to allow the Naira float freely at the interbank market.
Here is what the CBN governor stated during the announcement which was aired by CNBC Africa:
“CBN will launch a foreign exchange interbank trading window on Monday to boost the supply of hard currency in Nigeria. The new window will have eight to ten primary traders handling minimum volumes of $10 million.The new system will help with economic growth and restore investor confidence,” he said. “The precise guidelines will be published later on Wednesday.”
According to Reuters, the CBN governor also stated that the window’s exchange rate will be purely market-driven.
“Nigeria will introduce fx primary dealers to operate with others in the interbank market. Under the new structure the 41 items previously not banned from getting access to forex in Nigeria will remain unchanged.Nigeria’s Forex Reserves is robust an can cover five months of import,” said Emefiele. “The time is right to reintroduce a flexible interbank forex market. Forex market will operate as a single market structure.”
Songezo Zibi, Editor, Business Day (SA) –
UNDER normal circumstances, 2015 would be a year President Jacob Zuma would like to forget. This year saw the culmination of six years of economic policy mismanagement and dithering that sapped the confidence of business to invest and led to most economic and fiscal indices pointing in the wrong direction.
While everyone else was looking for measures to curb the decline, Zuma decided to throw fuel on the fire by firing Nhlanhla Nene. The reasons given for his dismissal and replacement by David Desmond van Rooyen were unconvincing.
As expected, the rand crashed through the psychologically important barrier of R15 to the dollar, and then on to the hitherto unthinkable R16/$. Banking stocks lost up to 10% of their combined market capitalization upon the news.
Since Zuma ascended to the presidency in 2009, unemployment has risen from 23% to 25%. Youth unemployment — the anchor of his electoral promises six years ago — has increased from 33.7% to 35.5%.
DIANNA GAMES –
REFLECTIONS on the history of Africa’s two biggest economies dominated the SA-Nigeria Chamber of Commerce’s (SA-NCC) 10th anniversary dinner in Johannesburg last week.
George Nene, a former South African ambassador to Nigeria, told guests of how his six-year sojourn in exile during apartheid was transformed into an ambassadorship when he was asked by former president Nelson Mandela to open SA’s first embassy in Nigeria in 1994.
Africa Confidential, Vol 6 No 20 –
After balancing political interests and restructuring ministries, the most urgent issue facing President Buhari is economic strategy
At his self-imposed eleventh hour, President Muhammadu Buhari submitted his list of 21 ministerial nominees to the Senate on 30 September. On 8 October, the Senate was to start vetting the names but it will not know the portfolios that Buhari intends to give to his nominees. That means that most of the questions will be about personal integrity and political loyalties rather the technical competence required in a specific portfolio (AC Vol 56 No 9, APC to lead with a leaner team).
AFRICA RISK CONSULTING ANALYST –
President Muhammadu Buhari set out his governance and security priorities during a short address at his inauguration on 29 May.1 However, he failed to ensure that his chosen candidates won the most senior offices in the national assembly. This will make it harder for him to pass his reform agenda and increases the risk of policy delays. During his inauguration, Buhari: