Somalia May Become African Leader in Mobile Money

The World Bank published in August 2018 a major report titled "Rapid Growth in Mobile Money: Stability or Vulnerability?"

Somalia is the focus of the report, which suggests the country has the potential to become the largest mobile money market in Africa with the number of mobile money transactions exceeding those in Kenya.

South Sudan: IMF Predicts Dismal Economy

The International Monetary Fund (IMF) issued a press release on 23 March 2017 titled "IMF Executive Board Concludes 2016 Article IV Consultation with the Republic of South Sudan."

The IMF said economic conditions have deteriorated rapidly since the beginning of the civil conflict in 2013. Real GDP growth declined by nearly 20 percent in the two years through 2015/16 and annual inflation rose to about 550 percent in September 2016 before declining to 370 percent in January 2017. Since December 2015, the South Sudanese pound has lost more than 95 percent of its value against the U.S. dollar. Without significant progress toward peace and economic stabilization, the economic trajectory for South Sudan is highly unstable, and the country risks falling into a spiraling trap of deteriorating economic performance and worsening security conditions with continued humanitarian costs.

IMF Evaluates Economy of Sub-Saharan Africa

The International Monetary Fund (IMF) published in April 2016 its "Regional Economic Outlook for Sub-Saharan Africa: Time for a Policy Reset."

It concludes that economic activity in sub-Saharan Africa (SSA) has weakened markedly, but, as usual, with a large variation in country circumstances. Growth for the region as a whole fell to 3 and one-half percent in 2015, the lowest level in 15 years, and is set to decelerate further in 2016 to 3 percent. The IMF believes that the medium-term growth prospects for SSA remain favorable. However, to realize this potential, a substantial policy reset is critical in many areas.

Africa's Macroeconomic Prospects

The African Development Bank has just released its African Economic Outlook for 2015.  Chapter 1 titled "Africa's Macroeconomic Prospects" states that Africa's economic growth should strengthen to 4.5 percent in 2015 and 5 percent in 2016.  Lower oil and commodity prices, uncertain global conditions, the Ebola outbreak in West Africa, and domestic political uncertainties could still prevent these strong projections from realization.

External Economic Factors May Impact Africa Negatively

Ventures Africa published on 3 February 2015 an article titled "How Slowdown in China May Hurt Africa" by Felicia Omari Ochelle.  The article refers to remarks by IMF Managing Director Christine Lagarde who suggests that China's slowing economy, record low global oil prices, and US monetary policy normalization and subsequent raise in interest rates may impact Africa negatively.  Low oil prices will have a negative effect on African oil exporters but a positive effect on African oil importers.