Musings From Abroad

World Bank warns Nigeria’s poor growth to affect W’Africa’s economy

Published

1 month ago

April 14, 2024

Multilateral body, the World Bank, has warned that Nigeria’s lower-than-average growth might affect the economic performance of the West African sub-region.

A recent study from the Washington-based lender on the economic outlook of West and Central Africa stated that economic growth in the area would rise from 3.2% in 2023 to 3.7% in 2024 and then even faster to 4.2% in 2025–2026.

“In AFW, economic activity is set to increase from 3.2 per cent in 2023 to 3.7 per cent in 2024 and further accelerate to 4.2 per cent in 2025–2026. The subregion’s performance will be held back by the lower-than-average growth in Nigeria. Excluding this country, the AFW sub-region is projected to grow by 4.4 per cent in 2024 and 5 per cent in 2025–2026.” it noted.

The study also said that the West African Economic and Monetary Union’s economies would grow by 5.9% in 2024 and by 6.2% in 2025. This was because Benin, Côte d’Ivoire, Niger, and Senegal were all doing considerably well economically.

A report from the World Bank said that Nigeria’s economy would grow by 3.3% in 2024 and by 3.6% in 2025–2026. This is because macroeconomic and fiscal changes are starting to show results. It said that the oil market should become stable with prices going down a little and production going back up.

“A more stable macroeconomic environment, as the reforms’ initial shock dissipates, will lead to sustained but still slow growth of the non-oil economy. The oil sector is expected to stabilise with a recovery in production and slightly lower prices.

“Structural reforms will be needed to foster higher growth. Average inflation will remain elevated at 24.8 per cent in 2024, although it is expected to ease gradually to 15.1 per cent by 2026 on the back of monetary policy tightening and exchange rate stabilisation.”

In the world, Sub-Saharan Africa has the highest rate of extreme poverty, the most unequal distribution of wealth, and the slowest link between growth and poverty reduction. It said, “In 2019, 700 million people lived in extreme poverty, and 60% of them were in Sub-Saharan Africa.”

In 2022, Nigeria’s National Bureau of Statistics said that 133 million people, or 63% of the population, were multidimensionally poor because they did not have access to health care, schooling, or decent living standards. They were also unemployed and had experienced shocks.

Musings From Abroad

China’s Hailiang, Shinzoom to establish vehicle battery installations in Morocco

Published

9 hours ago

May 16, 2024

Ifeoluwa Dada

Hailiang and Shinzoom, Chinese car battery makers, will establish two separate operations in Morocco as the country strives to adapt its burgeoning automotive sector to rising demand for electric vehicles, Moroccan officials announced on Tuesday.

Tanger Tech, the Moroccan northern industrial zone’s development authority, said Hailiang intends to establish a $450 million copper facility on a 30-hectare plot of land. Shinzoom, a subsidiary of Hunan Zhongke, plans to invest $460 million in an anode plant spanning 20 hectares, according to a statement.

In April, the Moroccan government approved Chinese electric battery company BTR New Material Group (835185.BJE)’s plans to build a factory in Tangier to manufacture crucial component cathodes.

Another Chinese firm, CNGR Advanced Material (300919.SZ), plans to develop a cathode plant in Jorf Lasfar, 100 miles south of Casablanca, where the government has set aside 283 hectares for electric battery sectors.

Last year, the Moroccan government and China’s Gotion agreed to examine establishing an electric vehicle battery plant in the country, with a potential investment of up to $6.3 billion. Last month, Industry Minister Ryad Mezzour told Reuters that the Gotion project was moving forward, with conversations over its footprint and location.

Morocco’s strategic location on the Strait of Gibraltar, free trade agreements with important EU and US markets, and existing automotive sector cluster all attract Chinese enterprises.

In 2023, the automotive sector topped Morocco’s industrial exports with $14 billion, a 27% increase. Morocco is home to Stellantis (STLAM.MI) and Renault (RENA.PA) production factories with an annual combined capacity of 700,000 automobiles, as well as a network of local suppliers.

Musings From Abroad

Prince Harry, Meghan treated to street-style dances in Nigeria as their trip winds down

Published

3 days ago

May 13, 2024

Ifeoluwa Dada

On Sunday, Prince Harry and his wife Meghan were treated to street-style dances in Lagos, Nigeria’s commercial capital, where they announced a partnership between their Archewell Foundation and the non-profit Giants of Africa, which utilizes sports to empower young people.

The Duke and Duchess of Sussex are making their first visit to Nigeria, where they were welcomed by the country’s chief of defence staff. The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, where Harry participated in ball-bouncing drills and shot a hoop.

“What you guys are doing here at Giants of Africa is truly amazing,” he said. “The power of sport can change lives. It brings people together and creates community and there are no barriers, which is the most important thing.”

The couple watched basketball practice at Ilupeju Senior Grammar School on Lagos Mainland, and Harry stepped on the court for some ball-bouncing drills and to shoot a hoop.

Former Toronto Raptors star Masai Ujiri, president of Giants of Africa, wished Meghan a happy Mother’s Day and said his organization was uniting communities and uplifting young people through sport, especially. Archewell Foundation and Giants of Africa will construct a basketball court in Nigeria’s capital Abuja.

“Talk about full circle again – never did I think we would be able to be here all those years later supporting the expansion of this incredible organization,” she said.
Harry and Meghan were set to round off their Lagos trip by attending a reception for a local charity. The couple live in the United States with their two children after Harry gave up working as a member of the royal family in 2020.