The article appeared in the Opinion and Analysis section of Business Day (SA) on 27/02/22
The biggest crisis in Europe since World War 2 has sent financial markets on another dizzying roller-coaster ride over the past week. The conflagration in Ukraine has had economists ripping up their forecasts and sent them back to the drawing board. Predictions were already battered by the uncertainties brought on by the Covid-19 pandemic and subsequent supply-chain bottlenecks.
The dominant consensus that is emerging is one of doom and gloom for Africa, with rising prices of crude oil and food staples, especially wheat, feeding into existing instability. This is ominous given the number of military coups already witnessed recently in and around the Sahel region. One need not look too far back in history — just a decade, to 2011-2012 — for a period when a spike in prices caused civil unrest from Nigeria to North Africa and stoked the Arab Spring.
Continue reading “Russian-Ukrainian war may be the boon SA has been waiting for”
On the 16th December 2021, I had a fascinating chat with Shuaibu Idris, a Nigerian development economist and MD of Time-Line Consult, a Lagos-based financial consultancy and management firm, about the state of infrastructure spending and general investment levels on the continent for an article for the weekday South African media outlet, Business Day ( https://www.businesslive.co.za/bd/opinion/2021-12-23-george-philipas-infrastructure-spending-in-africa-is-at-a-crossroads/ )… Thought I would share his insightful extended comments.
Continue reading “A conversation with Shuaibu Idris, a development economist from Nigeria, about the future of infrastructure spending in Africa”
An edited version of this article appeared in the Opinions and Analysis section of Business Day (South Africa) on 23/12/2021: https://www.businesslive.co.za/bd/opinion/2021-12-23-george-philipas-infrastructure-spending-in-africa-is-at-a-crossroads/
The pandemic has certainly not been kind to investment prospects in Africa. Lead by a slowdown in infrastructure investment from China, foreign direct investment (FDI), already heading south before the onset of the pandemic, fell by 18% in 2020. More ominously, greenfield investment, investment in new projects, fell precipitously by 63% according to the Global Investment Trends Monitor released by UNCTAD in Jan 2021, the largest regional fall on the globe last year. The proverbial onslaught culminated with the announcement earlier this month at the recent Forum of China-Africa Cooperation conference (FOCAC) in Dakar, Senegal that plots Sino-African relations for the next three years, of a vertical drop in investment from China from US$ 60 billion to US$40 billion.
Continue reading “Infrastructure spending in Africa is at a crossroads”