In 2016, Africa as a whole maintained its position as the world’s second-fastest growing economies behind South Asia, according to data released during the Financial Presentation at the African Development Bank Group’s Annual Meetings, which entered its third day on Wednesday in Ahmedabad, India.

The report analyzed the continent’s economic outlook, Bank operations, financial profile and capital market activities, noting that the continent recorded an average of 2.2% GDP growth in 2016 compared to 7.1 posted by South Asia powered India against a 2% average for the developed economies.

The report said African economies would improve further to average 3.4% growth in 2017 and 4.3% in 2018, driven largely by growing domestic demand and good performing countries.

“Although natural resources and primary commodities are still major drivers, their importance has declined while domestic factors including consumption demand play an increasing role,” AfDB Senior Vice-President Charles Boamah said during the presentation.

Other factors include improved supply conditions and good business environment, prudent macroeconomic management, favorable external financial flows, and high public spending, he said.

The report notes that, while natural resources and primary commodities remain major growth drivers, their importance has declined, while domestic factors including consumption demand now play a greater role.

Vast differences in country, sub-regional performances

East Africa emerged the best sub-regional performer with a 5.3% real GDP growth average driven by strong performance in Ethiopia, Tanzania and Djibouti.

North Africa followed with an average 3.3% growth driven by recoveries in Egypt (4.3%) and Algeria (3.5%), amidst persistent political uncertainties.

Southern Africa recorded a 1.1% average due to the poor performance of South Africa and Angola, two major commodity exporters in the sub-region hit by drought, persistent power outages and adverse terms-of-trade shocks, while Madagascar and Mozambique were rare bright spots, posted growth rates above 4%.

Central Africa followed with a 0.8% average due to low commodity prices while some countries lime Cameroun proved resilient. Central African Republic and São Tomé and Príncipe improved their economic performances.

West Africa was at the bottom, averaging a 0.4% growth rate despite good performances by Côte d’Ivoire and Senegal, which were cancelled out by recession and socio-political factors that bogged down the economy to 1.5% growth.

Nigeria and South Africa account for the largest share of Africa’s GDP with 29% and 19%, respectively.

Overall, external flows slowed

The report said Foreign Direct Investment increased slightly reaching US $56.5 billion in tune with growing urbanization and cities growing with consumer markets increasingly targeted by foreign investors. Official development assistance (ODA), which remains the most important source of public finance, declined by 1.7%.

Remittances mainly by the African diaspora represent a key source of capital for African countries totaling US $64.6 billion in 2016, the report says.

However, the facts on the ground suggest that these resources are insufficient to fully meet the continent’s development challenges.

An improved outlook

In this regard, the Bank estimates that its High 5 priorities – Light up and power Africa, Feed Africa, Industrialise Africa, Integrate Africa, and Improve the quality of life for the people of Africa – would spearhead Africa’s economic diversification and growth in broad-based economic opportunities that will shield the continent from future commodity shocks and enhance their resilience.

“Growth prospects would further be boosted by expected increases in commodity prices, strong domestic demand, better macroeconomic governance and an improved business environment,” co-presenter and Acting Vice-President for Finance, Hassatou N’Sele, said.

However, the report also cited rising debt, structural weaknesses, power outages, climate change, conflict, political instability and terrorism among some of the downside risks which should not be ignored.

www.afdb.org

A direct flight has opened between Chengdu, capital of southwest China’s Sichuan Province, and Addis Ababa, the capital of Ethiopia.

Operated by Ethiopian Airlines, it will depart from Chengdu every Tuesday, Thursday and Saturday with a travel time of 9.5 hours.

It is the second direct air route from Chengdu to Africa, also the 100th international and regional air route to operate at Chengdu airport.

Ethiopian Airlines has direct air routes to Beijing, Shanghai, Guangzhou and Hong Kong.

The airline now serves 13 airports in Asia on 100 weekly flights.

The Ethiopian Airlines (ET) has expressed interest in assisting Ghana set up a National Carrier.

Mr Tewolde Gabrielmariam, the Group CEO of Ethiopian Airlines, made this known when he called on the Minister of Aviation, Mrs Cecilia Abena Dapaah at her office in Accra.

He outlined the desire of the Airlines to re-establish the partnership Ethiopian Airlines once had with Ghana Airways.

He told the Minister that ET had sought to get involved in the set-up of a new Airline in the past but was overlooked before Togo showed interest, which led to the setting up of ASKY.

He said ASKY was set up without any financial cost to the Government of Togo.

He said the Company believe that every country on the Africa Continent needed a home carrier because aviation was a strategic asset for any country.

“But we insist that Home carrier must be run professionally,” he added.

Mr Tewolde gave example of models of the African Sky (ASKY) that has worked well in West Africa, which started in 2010 as a privately owned Airline but based in Togo and now has eight Aircraft and made profit in 2015.

“Ghana can also set up ASKY Ghana,” he said.
The Minister expressed praises for Ethiopian Airlines and commended the Airline for thriving very well on the Continent.

She said Ghana could learn a lot from ET in the Spirit of South- South Co-operation, adding that the Minister was awaiting Cabinet approval to start the modalities for the new National Airline.

She said government as part of its vision was poised to making Ghana the Aviation hub of Africa and government also intended to establish an Aviation academy to train its pilots and cabin crew to equip the airline.

She said “Ghana will, therefore, tap from the rich resource experience of the Airline to establish ours”.

She expressed the hope that the preliminary discussions would lead to greater partnerships to see the establishment of the airline.

Ethiopian Airlines has been flying to Ghana for 57 years and It is Africa’s largest Airline and the most Profitable.

It currently flies the most modern Aircraft in the World the Boeing B787 Dreamliner and the Airbus A350.

Source: GNA

A NEW commodity spawns a lucrative, fast-growing industry, prompting antitrust regulators to step in to restrain those who control its flow. A century ago, the resource in question was oil. Now similar concerns are being raised by the giants that deal in data, the oil of the digital era. These titans—Alphabet (Google’s parent company), Amazon, Apple, Facebook and Microsoft—look unstoppable. They are the five most valuable listed firms in the world. Their profits are surging: they collectively racked up over $25bn in net profit in the first quarter of 2017. Amazon captures half of all dollars spent online in America. Google and Facebook accounted for almost all the revenue growth in digital advertising in America last year.

Such dominance has prompted calls for the tech giants to be broken up, as Standard Oil was in the early 20th century. This newspaper has argued against such drastic action in the past. Size alone is not a crime. The giants’ success has benefited consumers. Few want to live without Google’s search engine, Amazon’s one-day delivery or Facebook’s newsfeed. Nor do these firms raise the alarm when standard antitrust tests are applied. Far from gouging consumers, many of their services are free (users pay, in effect, by handing over yet more data). Take account of offline rivals, and their market shares look less worrying. And the emergence of upstarts like Snapchat suggests that new entrants can still make waves.