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Africa’s trade finance market facts and challenges

Africa’s trade finance market: Facts and challenges

Eugene Bempong Nyantakyi, Mouna Ben Dhaou, Lamin M Drammeh, Mouhamadou Sy 08 October 2016

Boosting Africa’s intra-regional and international trade takes a good knowledge of the African trade finance landscape, like the identification of markets where in fact the need is greatest. This column presents a few of the major patterns of the marketplace in Africa using primary survey data from commercial banks. Banks intermediate almost a third of trade activities over the continent, but nonetheless reject a substantial value of trade finance applications due mainly to weak client creditworthiness and inadequate collateral.

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African polygamy past and present

African polygamy over space

I map African polygamy in Figure 1. Each point is a married woman for whom the DHS data gives geographic coordinates. Red dots are polygamists, while blue dots are monogamists. Polygamy is most concentrated in West Africa, though it really is in no way limited there. Polygamy in the info is basically bigamy – 72% of respondents report they are the only wife, 19% report that their husband has two wives, 7% report that he has three wives, and less than 2% report that he has 4 wives or even more.

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African development from a comparative perspective

African development from a comparative perspective

Grandmother-verifiable statistics

In 1901, my grandmother was twenty-four. She had six children, as was common in Iceland at that time, even if the common number of births per woman had decreased from almost six in the first 1850s to four around 1900, like in today’s Ghana. Actually, the amount of births per woman in Iceland was four in 1960, so Iceland and Ghana are separated in this respect by a half-century or less. It took Ghana significantly less than fifty years, from 1960 to date, to lessen the amount of births per woman by three, from almost seven to four. It took Iceland a hundred years . 5, from the late 1850s to date, to lessen the amount of births per woman by three, from five to two (or 2.1 to be precise, the critical number that keeps the populace unchanged in the lack of net immigration).

Basel

Africa, the trade crisis and wto negotiations

Africa, the trade crisis and wto negotiations

THE FANTASTIC Recession and the fantastic trade collapse

This sharp economic depression worldwide has resulted in an immense contraction in international trade.

  • African export volume growth is likely to decrease to 4% in ’09 2009, from a buoyant rate of 11% in 2008, translating right into a 45% loss in export value. 1
  • The largest slump is for middle-income countries, as their exports depend heavily on commodities (e.g. oil and gold and silver coins) whose prices and demand has been severely hit; their manufactures exports also have suffered.
  • Oil and gold and silver coins were affected mainly by a slump in global commodity prices, while manufactures suffered because of contraction popular as the true sector in key markets shrunk.
  • Low-income countries show some resilience, due to the fact their exports are in “soft” commodities – such as for example tea, coffee, etc. – which didn’t experience a drastic decline in prices or demand on the global market.

This chapter discusses the trade situation in Africa in key global markets and the impact of the global overall economy on different income groups and sectors. Furthermore to advertise access issues, the paper highlights the need for initiatives such as for example “Aid for Trade” in assisting African countries realize the entire gains from trade liberalization.

Trade collapse amid the financial meltdown in major markets

The slowdown in major trading partners, in conjunction with Africa’s undiversified exports has severely affected the continent’s trade. That is exemplified by the drastic fall in exports to the united states, which fell by a lot more than 50% between August 2008 and August 2009, from $8,525 million to $4,017 million (Figure 1).

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Africa s prospects for enjoying a demographic dividend

Africa’s prospects for enjoying a demographic dividend

David Bloom, Michael Kuhn, Klaus Prettner 20 October 2016

Africa’s total fertility rate and its own dependency ratio have already been falling because the 1980s, and so are projected to fall further. This column talks about the potential growth ramifications of the continent’s changing demography. The African economy gets the potential to grow between 0.5 and 2 percentage points faster over another five decades than it could without the projected fertility reduction. However, this ‘demographic dividend’ would depend on the policies that African governments enact.

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Africa has resisted protectionism – why can’t the eu

Africa has resisted protectionism – why can’t the eu

Africa has resisted protectionism – why can’t the EU?

Simon Evenett interviewed by Viv Davies, 25 June 2010

Simon Evenett of the University of St Gallen foretells Viv Davies about the fifth Global Trade Alert (GTA) report. They discuss why the EU – as opposed to Africa, which includes resisted protectionist temptations – is currently in the very best five ‘offending nations’ on all the GTA criteria. Evenett also answers recent criticisms that GTA has been ‘over-alarmist’ in its analysis of protectionist measures implemented by governments because the onset of the financial meltdown. The interview was recorded in June 2010.

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Africa can help feed africa removing barriers to regional trade in food staples vox, cepr policy po

Africa can help feed africa removing barriers to regional trade in food staples vox, cepr policy po

Solutions exist: fertile land, seeds and trade opportunities

Fortunately, you will find a solution to the problem within Africa. The potential to improve agricultural production in Africa is enormous. Yields for most crops certainly are a fraction of what farmers elsewhere on the globe are achieving, and output could easily increase twofold or threefold if farmers were to use updated seeds and technologies. Also, large swathes of fertile land in Africa remain idle. For instance, 400 million hectares of the Guinea Savannah zone (a location how big is India) may be used for agriculture but significantly less than 10% of this has been cultivated (World Bank 2009).

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Africa at a fork in the road taking off or disappointment once again

Africa at a fork in the road taking off or disappointment once again

Africa at a fork in the street: Removing or disappointment once more?

Ernesto Zedillo 26 August 2015

In this column, Director of the Yale Center for the analysis of Globalization and ex-President of Mexico, Ernesto Zedillo, introduces an eBook he co-edited that illustrates a number of the ambitious but necessary steps had a need to unleash the tremendous potential of the African people towards the development of their nations.

Related

Recently, some called Africa’s growth performance the worst economic disaster of the 20th century. Indeed, by any measure, African countries’ economic record since around enough time of the 1973 oil shock was dismal. The secular malaise of Africa’s economy began to abate around the mid-1990s, learning to be a new trend of growth revival by the first years of today’s century.

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Advertising as a major source of human dissatisfaction

At the national level, we have no idea which of both effects is dominant. Many national variables influence wellbeing, specifically the generosity of the welfare state and variables such as for example unemployment (DiTella et al. 2001, DiTella et al. 2003, and Radcliff 2013). But recent research on subjective wellbeing, described in sources such as for example Easterlin (2003), Oswald (1997), Layard (2005) and Clark (2018), has paid little focus on the role of advertising, therefore there are no cross-country econometric studies of the result of advertising using representative samples of adults.

Banks

Africa and the trade crisis

Diagnosing crisis drivers in Africa

Impacts on the continent could be traced through, inter alia, two broad channels:

  • Reduced exports and commodity prices; and
  • Declining capital inflows.

We address each subsequently, in the process taking into consideration the broader macroeconomic impacts, and conclude with some thoughts in what this implies for Africa in light of the wider consequences for global trade.

Commodity prices and trade

African economies depend on commodity exports to create forex and fuel domestic economic growth (Table 1). This fits with the continent’s comparative advantage in resource endowments, particularly of mineral and agricultural products; the only manufacturing centre of any significance is South Africa which makes up about the bulk (a lot more than 50%) of the manufactures represented in Table 1.