World
Annan Identifies Causes of Current Level of Development in Africa
By Kester Kenn Klomegah
In an insightful conversation, the President/CEO of the Institute of African Leadership (IoFAL), Dr Bennett Annan, discusses management styles of African leaders, the system of governance, diversities in political culture and the extent these affect progress and development.
He points to the lack of effective monitoring and evaluation as factors determining the current level of development in Africa. He unreservedly argues that his Institute of African Leadership (IoFAL) provides the necessary cutting-edge skills for young aspiring leaders for Africa. Here are the interview excerpts:
What prompted the recent research titled Leadership Styles of Africans: A Study Using Path-Goal Leadership Theory, something related to management styles of African leaders?
Several years ago, when I was a teenager growing up in Ghana, I watched various politicians talk about policies that they believed will help alleviate poverty, yet when they came to power nothing really good happened to their people. I wondered why?
During that same period of time, I also read in the newspapers many, many times how poor Africans were and how the leaders have mismanaged their countries’ resources. But these were intelligent people, so why?
In 2007, I conducted my first research study in America entitled West African Managers in American Businesses and set up six research sites for the project: New York, New Jersey, Atlanta, North Carolina, Colorado, and California.
I went to these locations and did interviews, both with individuals and focus groups. I realized how intelligent these West Africans were, and how they had assimilated into the American system by practising participative leadership styles, finding success as managerial leaders in many organizations in corporate America.
Then I asked myself why managerial leaders in Africa can’t do the same, because we are capable, and I believe the answer was not far-fetched. The environment in Africa needs to change, and that prompted me to delve into this research of “African Leadership Styles,” to find out the gap between our managerial styles in Africa and that of the industrialized nations, using the Path-Goal Leadership Questionnaire. I used SurveyGizmo to collect data from Africans from various countries, including Ghana, Uganda, Nigeria, Ethiopia, Zimbabwe, and others.
For several years, I’ve been wondering why someone won’t do something about this, why someone won’t figure out why we are the richest continent in the world and yet the poorest, why someone won’t sit down and figure this out. I’ve been told so many excuses and reasons why this cannot be done, but I still didn’t give up finding some solution to this problem.
Just like Albert Einstein said, we cannot do the same thing over and over and over again and expect different results. For Africans, this means we cannot keep mismanaging our resources and seeking help from industrialized nations in the form of loans we are unable to repay. We cannot ask for forgiveness again and again and think things will get better.
Based on this research, we at the Institute of African Leadership have started something little to stop the failed leadership problem, because I believe something little is better than a whole lot of nothing. That is why we delved into the research to find out what managerial leaders in Africa should do to catch up with the industrialized nations, and the answer was very simple.
The findings of my research showed that the only thing that industrialized nations do that Africans do not is to use the participative leadership style most often. Africans use this participative leadership style the least. That means all we need to do is to practice this participative leadership style of management more often. My findings also found that the participative leadership style is not new to African managerial leaders. In fact, my research shows that we practice participative leadership style more than our counterparts in the industrialized nations but do this the least – that means it does not come to us easily.
Why do you think participative leadership is unique to Africa? Do you also see the lack of effective monitoring and evaluation as factors determining the level of development in Africa?
First of all, I want to talk a little bit about what participative leadership style is, so we can be on the same page. Let’s start from the word “participative,” a derivative of the word “participate,” meaning that this leadership style requires participation.
Participative leadership style, as we know it, is when the leader actively involves team members in the decision-making process. In general, it involves all team members in finding solutions to problems. In a way, the leaders turn to the team for input, ideas, and opinions instead of making all decisions on their own. For this style to work, the leader needs to understand the team has the skills and ideas that could benefit the decision-making process, especially when the team owns the problem.
Now, let’s look at Africa for a moment. Research shows African managerial leaders use the directive/autocratic leadership style. The leader retains as much power and decision-making authority as possible. The leader does not consult employees, nor are they allowed to give any input. Employees are expected to obey orders without receiving any explanations.
Most Africans find the participative management style foreign because they are used to the directive/autocratic style of leadership, which is outdated and adds costs to the organization. The participative style is modern, reduces costs, and increases profit margins. The task at hand is to create a plan to change the African managerial leadership style from directive/autocratic to participative.
However, Africans in management positions can be successful if they make the change from a directive/autocratic to a participative leadership style at the institutional and personal levels. Though these are difficult things to do, as this study has found, they still have to do it.
There is a sense of urgency here. Africans need to embrace cultural change as a means of making themselves ready for globalization, or else they are likely to be left behind in the global economy. This may result in further reducing levels of socio-economic development and standards of living, worsening education and health, and increasing fertility and mortality rates. If nothing is done about this issue, we would be denying the African people their best hope for escaping poverty.
The other question is whether I see the lack of effective monitoring and evaluation as factors determining the level of development in Africa. Yes, of course, I do see that, but one thing about the participative leadership style is the belief that where the problem is, lies the solution. This is what I mean: If we can use this participative leadership style, it allows us to create teams to solve the problem, with inputs, ideas, and opinions coming from members of the group. They figure out ways and means to address the problem instead of relying on the people at the top of the organization for a solution. When the decisions and solutions come from the members of the team, these members tend to own and practice the solutions wholeheartedly, unlike when the solution comes from the top, in which case the team members are less likely to embrace the solutions because they did not buy into them.
Do you agree that there are diversities in political culture in African countries? What could be the best way to systematize and combine efforts in implementing policies to the benefit of the population?
Yes, I do agree that there are diversities in political culture in African countries. Let me tell you this: There are individual differences in the political culture of the African countries – talents, skills, and experiences. We are all very different, even twins because we carry different DNA, fingerprints, and so on. However, we are all human beings who are generally gregarious, being together, working together, and solving problems together.
Research has shown that Africans, by nature, are a collectivist culture. That means our culture places emphasis on cohesiveness among individuals; we prioritize the group over the self. We find common values and goals in whatever we do. In a way, this is the fundamental of a participative leadership style, where the members of the team get together to solve problems. So, we have these participative leadership style traits in us, but the leader does not use the grouping ideology in collecting inputs, ideas, and experiences in the decision-making process.
I strongly believe the best way to systematize and combine efforts in implementing policies to the benefit of the population is to fall back on this collectivist culture that we embrace amongst the African people as a first step. This is the very foundation of making the change I have been talking about from the autocratic/directive leadership style to participative leadership style.
Next is to use cognitive behavioural techniques to change the mindset – a process of “melting” the autocratic/directive leadership style and refreezing into a participative leadership style mould. This creates a new mindset that allows us to seek inputs, ideas, and experiences from members of the team in decision-making and problem-solving.
Finally, this where I come in. I have about 15 different training lessons on the African Participative Leadership Training Program. These lessons are about 1 hour each, and they are online, on-demand at our website (www.iofal.org). The good news is these lessons are free and currently under construction; they should be ready to go by May 2021.
The training program is comprised of lessons on the rationale behind the change of autocratic/directive leadership style to the participative, and it runs through lessons like changing the current mindset of the African managerial leaders and the process for how to make this change work. Then there are also lessons regarding unethical behaviours. The beauty of this training program is how the change process incorporates the African culture, making it a very unique style of managerial leadership that we call the African participative leadership style.
Our plan is to secure location sites in every Black African country with representatives who will engage in the promotion of this program, advertising and running commercials and getting people to know about this free African participative leadership style training program. We want to make sure that every single African participative managerial leader gets access to this training no matter where they come from or their economic status. As long as they have internet access, whether through their phones or through their laptop computers, they can go through this training program successfully from anywhere.
Just to give you a clue as to how the program is laid out: First, participants take a pre-lesson assessment, then they start the very first Lesson 1. After each and every lesson, participants take a 10-question quiz to make sure that learning has taken place; if they pass, they jump on to the next lesson. Finally, after the 15 lessons, there is an exam of about 25 questions. Once they pass, an electronic certificate is emailed to them to show that they have gone through this training program and they are deemed ready to put what they have learned to practice.
In what ways would you argue that the Institute of African Leadership is an educational institution that provides the necessary skills for young aspiring leaders?
This is a very good question. First of all, my research study used the Path-Goal Leadership Questionnaire to measure the directive/autocratic leadership style of participants among four different age groups. The results show the 18 to 29 age group had a directive/autocratic style average score of 28.5, the lowest among the four groups measured: (a) 18 to 29 years, (b) 30 to 44 years, (c) 45 to 59 years, and (d) 60 and older.
The study also showed that the same 18 to 29 age group had a participative style average score of 24.8, the highest among the four groups measured. Thus, young aspiring African leaders between 18 and 29 years old are predominately participative-centric, and less likely to be so as they get older. This group of African leaders needs the training now to reinforce their current participative style before they age into the next group when it gets harder to change their mindset.
Entrepreneurship is very challenging. What keeps you personally motivated as a chief executive officer of the Institute of African Leadership?
I agree that entrepreneurship comes with a lot of challenges, and some are difficult to overcome, but I know I have to deal with it come what may. I have been teaching and working as a mechanical and manufacturing engineer for some 40 years now, and it seems almost impossible to manage another career – training and developing African managerial leaders. I have dropped that career and am currently pursuing a training and development career.
I have been an entrepreneur once before and failed, then I went back to my predictable career, working again for an organization as an engineer. I have learned my lessons, especially when it comes to funding. This time, I have a pool of capital that will lead me to establish the first phase of this training program, which is getting the website and the lessons fully completed and ready for the participants, and I am happy about that. However, the second phase, which entails the dissemination of the training program via advertising (e.g., radio, TV, billboards, and newspapers) throughout all the countries in sub-Saharan Africa, requires additional resources and funding to make it work. I am currently seeking help from monetary organizations.
There are numerous factors that keep me personally motivated as a director of the Institute of African Leadership: (a) my will to problem-solve, (b) my vision, and (c) my education. However, and like I said before, I continue to ruminate several years ago, when I was a teenager growing up in Ghana and watched various politicians talk about policies that they believed would help alleviate poverty. Yet, when they came to power, nothing really good happened for their people. I wondered why? During that same period of time, I also read in the newspapers many times how poor Africans were and how the leaders have mismanaged their countries’ resources. But these were intelligent people, so why? This is where my will to problem-solve comes in, wanting to at least contribute my share of solving the failed leadership in Africa. I believe, where there is a will, there is a way.
Also, like I said earlier on, my research found that Africans in US businesses have assimilated into the American system by practising participative leadership styles, finding success as managerial leaders in many organizations in corporate America. That tells me African managerial leaders are capable, but it seems the environment in Africa does not allow them and that environment needs to be changed. I’ve been told so many excuses and reasons why this cannot be done, but I still didn’t give up finding some solution to this problem. This is where my vision for Africa comes in, where one day through the African Participative Leadership Training Program (APLTP) we will discover our true selves just like that, embrace our problems, become capable to solve our own problems our own way, grab our power back, and the whole game changes. Africa will be economically free forever. Japan, Singapore and other nations did it, why can’t we?
Of all the ways, I describe myself – mechanical engineer, manufacturing and quality engineer, business manager, counselor, professor, professional consultant, author, and researcher – perhaps the most fitting is multipotentiality, which is defined as someone whose interests span multiple fields or areas rather than someone who is proficient in just one. I hold a Bachelor of Science, B.S., degree and Master of Science, M.S., degree in mechanical engineering, a Further Education Teachers’ Certificate, (F.E.T.C.), a Master of Business Administration, MBA, degree, a Doctor of Education, Ed.D., degree in organizational leadership, a Master of Arts, M.A., degree in clinical psychology, certification as a marriage and family therapist, MFT, and a Doctor of Psychology, PsyD. This is where my education comes in, an excellent corporate trainer, teaching African leaders to help their followers cultivate their skills and knowledge by providing complete training and sharing my rich and tremendous knowledge and expertise in ways that motivate them.
What is your vision for the Institute of African Leadership and where do you see this business of education and training in the next 5 years, especially clients from Africa?
My vision for the Institute of African Leadership is to create wholesale success and overperformance in organizations in Africa, and eventually decrease poverty, increase the standard of living, and change the way Africans think and act at the institutional and personal level. I know that as the founder I will be expected to generate ideas, and when a competitor emerges, it will be my responsibility to come up with a response plan. When I hit an impenetrable obstacle, my job will be to come up with an alternate plan to move forward. I am capable of moving this program forward because I have tremendous knowledge and rich experience that spans over 40 years as I indicated previously.
There are so many unknown factors that come along with any entrepreneurial venture. For example, how long a business will exist and whether it will be profitable. In this case, will these African managerial leaders like the training and development service that we are creating? There are no solid, reliable answers to any of these questions. However, one thing that I can assure you is the training, development lessons will be online in May 2021 and maintaining this program online will go on forever at no cost to the participants.
In the next 5 years, I see the Institute of African Leadership (IoFAL) will be in every organization, workplaces, everywhere in every sub-Saharan African country, training and developing African managerial leaders in the African Participative Leadership Training Program to achieve our own unique management philosophy, one that is deep-rooted in the African culture, like Japan and others.
Kester Kenn Klomegah is a versatile researcher and passionate contributor, most of his well-resourced articles are reprinted elsewhere in a number of reputable foreign media.
World
Russia-Africa Dialogue: Untapped Prospects for Economic Cooperation
By Kestér Kenn Klomegâh
At the St Petersburg International Economic Forum 2026, the traditional “Russia-Africa Business Dialogue”, which was initiated in 2016, will deliberate aspects of forging economic cooperation between Russia and African countries. For a decade since its creation, this platform has practically discussed most pertinent roadblocks, highlighted the economic sectors, and outlined the prospects. The significant issues have also been treated at the first and second Russia-Africa summits.
As Moscow prepares to hold the next Russia-Africa summit in October, it is quite clear that Russia has still not worked out financial mechanisms to support its investments across Africa. Generally, the federal strategy for this area has been mapped out, Russian investors understand where to invest in Africa, but lacks extremely the financial motivation and approach to integrate young people into the business environment. Other constraining factors include a lack of financial support instruments the suitable environment for experience sharing and collaboration. At the same time, there are reports that point to a broad range of factors that hinder the development of youth entrepreneurship.
Historically, Russia–Africa relations have evolved through distinct phases after phases. The latest phase began from the first Russia-Africa summit through the second, and is currently moving to the third summit in October. As part of the strategic preparations, Tanzanian President Samia Suluhu Hassan was the guest of Vladimir Putin in the Kremlin. Russia and Tanzania have had good relations, but it has been more than a century since the last state visit of a Tanzanian leader to Russia. From the historical records, Mwalimu Nyerere visited in 1969. As a result, Samia Hassan’s official working visit had a special historic significance for the bilateral relations. “We see this as a very positive sign,” noted Putin. Further to that, Samia Hassan was decorated with an honorary doctorate degree (Doctor Honoris Causa) at the Russian Peoples Friendship University, expressed gratitude for the political solidarity, and underlined Russia for the great contribution which it provided during the African political liberation in the 60s.
Tanzania’s Distinctive Profile
Sergei Kiriyenko, the Deputy Chief of Staff of the Presidential Administration who oversees the department, visited Tanzania after the November 2025 elections. In addition, Putin’s aide Yuri Ushakov called Tanzania “one of the key partners on the African continent,” recalling that it is home to approximately 70 million people. Samia’s visit to Russia is a victory for Russian diplomacy in Africa, as Tanzania is one of those allies that strengthen Moscow, says Andrey Maslov, Director of the HSE Centre for African Studies. According to the expert, cooperation is based on mutual benefit, and Tanzania does not require assistance. The country is among the continent’s economic leaders, distinguished by high growth rates, a stable political system, and a friendly attitude towards Russia. Russia’s interest in Tanzania is largely due to its geographic location and access to the Indian Ocean. The port of Dar es Salaam is considered a key transport hub in East Africa, serving transit routes to the East African Community (EAC) countries, along with the Kenyan port of Mombasa. Given Tanzania’s population, the EAC’s combined market represents over 300 million people, and the potential for expanding trade lies primarily in agricultural products, fertilisers, and basic industrial goods.
Africa’s participation at the St Petersburg 29th forum is very unique, with the majority from East and Southern Africa. The Director General of the Tanzania Investment and Special Economic Zones Authority (TISEZA), Gilead J. Teri, noted that the Tanzanian delegation has a unique opportunity to advance its agenda and strengthen bilateral relations. The forum gave a powerful boost to trade and economic cooperation. Tanzania presented its investment potential to the Russian business community. Therefore, it could be said that bilateral relations between Russia and Tanzania are flourishing and developing dynamically today.
Eastern and Southern Africa’s Dimensions
While it envisages strengthening ties in a broad range of fields, targeting the Eastern and Southern regions by utilising Tanzania as the gateway, Russia shows that the key partners in that part of Africa. Russia’s attributes for raising investment relations are clear: stability, untapped resources and human capital.
Putin’s meeting with Tanzania’s Samia Hassan, aiming at lifting up bilateral cooperation, which symbolises a new qualitative stage or a new chapter in the relations between Russia, Tanzania and the entire SADC. “Africa is an important partner for Russia, a participant in the emerging and sustainable polycentric architecture of the world order. Our relations with the states of that continent are valuable in their own right and should not be subject to the fluctuations on the international arena,” Foreign Minister Sergey Lavrov also said long time ago at the Russia-Africa civil/public gathering held in 2018, in attendance was Stergomena Lawrence Tax, who headed the Southern African Development Community (SADC).
“We are aware that our African friends hold the same views. Relying on the accumulated experience of productive cooperation, Russian diplomats seek to pursue a consistent policy for deepening the range of Russia-Africa relations,” he added. Lavrov said it is necessary to maximise the potential of public, cultural and business diplomacy in the interests of strengthening and expanding the mutually beneficial ties between Russia and African states while invariably adhering to the principle of African solutions to African problems, formulated by the Africans themselves.
Stergomena Lawrence, however, observed that Russia has not been that visible in the region as compared to China, India or Brazil. But it is encouraging that Russia has made the decision to reposition itself as a major partner with Southern Africa. She expressed gratitude that Russia has launched a plan aimed at improving direct trade with the continent/region beyond the traditional sectors like mining, seeking to invest in areas like agriculture, industrial production, high technology and transport.
The Russian Federation’s priorities are also in line with SADC priorities, as evidenced by the priorities of the Foreign Economic Strategy in the region, as indicated below:
Prospecting, mining, oil, construction and mining, purchasing gas, oil, uranium, and bauxite assets (Angola, Namibia and South Africa);
Construction of power facilities—hydroelectric power plants on the River Congo (Angola, Namibia and Zambia) and nuclear power plants (South Africa);
Creating a floating nuclear power plant, and South African participation in the international project to build a nuclear enrichment centre in Russia;
Railway Construction (Angola);
Creation of Russian trade houses for the promotion and maintenance of Russian engineering products (South Africa).
Participation of Russian companies in the privatisation of industrial assets, including those created with technical assistance from the former Soviet Union (Angola).
In the Russian Federation, 10 SADC member countries have their diplomatic offices, namely: Angola, Democratic Republic of Congo, Madagascar, Mauritius, Mozambique, Namibia, South Africa, Tanzania, Zambia and Zimbabwe.
Final Words of Wisdom
In pursuit of following Putin’s policy to strengthen ties with the Global South, including Africa, Russia has to re-strategise and take up the existing critical challenges. Despite a noticeable increase in activity, Russia’s strategy on the continent faces several persistent structural limitations that require thoughtful responses. As geopolitical changes heat up, Russia has to understand the necessity to move ahead, back away from tectonic rhetoric and symbolism of diplomacy. By 2025–2026, the African continent had firmly established itself as a key area of global competition and, simultaneously, one of the most important reserves of economic growth. For Russia, this is important to change the very logic of its African ties. It is logical to walk the talk. In other words, Russia’s relations with African countries have to shift from historical rhetoric to a more practical architecture of interests.
On December 19–20, 2025, the second ministerial conference of the Russia-Africa Partnership Forum was held in Cairo, with the Roscongress Foundation acting as the operator on the Russian side. The conference was attended by the heads of the African foreign ministries and the leaders of the continent’s integration associations. That conference has been defined as a key stage in the preparations for the third Russia-Africa summit, scheduled for October 2026. As noted by Russian Foreign Ministry spokesperson Maria Zakharova, the meeting is intended to “give additional impetus to the development of the Russian-African partnership and the strengthening of its truly strategic nature.”
For Moscow, institutionalising the format is crucial given the overall transformation of global politics. And ultimately, Africa is becoming a space where external players’ ability to not only declare respect for sovereignty but also propose practical mechanisms for cooperation is being tested. Russia’s strategy is built on combining political rhetoric about multipolarity with concrete areas of cooperation—from trade to energy, and food security to personnel training and military-technical cooperation. Economic spheres and building infrastructures are important for Africa, which is ready for foreign investors with adequate funds and not just geopolitical rhetoric. It has to be noted that Africa is a space of competition between external players.
The continent is an arena of intense competition, with China, the European Union, the United States, Turkey, India, and the Gulf states all operating simultaneously, each offering its models of interaction: from large-scale infrastructure financing to military cooperation and religious and cultural influence. African states are becoming increasingly pragmatic and multi-vector—they are consistently expanding their foreign policy space, weighing the conditions, benefits, and political costs.
In such an environment, the sustainability of Russia’s presence is determined by its ability to offer a concrete and replicable set of advantages. Anti-colonial rhetoric and appeals to historical legacy remain important, but they no longer provide a long-term advantage on their own. Each competitive proposition must be backed by institutional support.
At the St. Petersburg forum, there was a genuine international community of like-minded partners practically united by a common goal: networking and developing business cooperation. “The continued participation confirms the demand for building relationships of business trust and confidence with foreign partners from different regions, including the United States, Europe, the Middle East, Latin America, Asia and Africa,” said Alexander Stuglev, Chairman of the Board and CEO of the Roscongress Foundation. The Roscongress Foundation held the 29th St Petersburg International Economic Forum (SPIEF) from 3 to 6 June 2026.
World
CANAL+ Eyes MultiChoice Turnaround as Stocks Debut on JSE
By Adedapo Adesanya
CANAL+ has expressed confidence in its ability to turn around the fortunes of struggling broadcaster MultiChoice as it marks a milestone by becoming the first French company listed on the Johannesburg Stock Exchange (JSE).
The secondary listing of CANAL+ signals strong international confidence in South Africa’s capital markets and reinforces the JSE’s role as a conduit between global capital and African growth opportunities, it said in a statement.
CANAL+ enhances the JSE’s sectoral diversity and provides local investors with direct, rand-denominated exposure to a globally diversified media and entertainment business with a significant African footprint. CANAL+ listed on the London Stock Exchange in December 2024.
The group’s listing on the JSE aligns with its long-term strategy to expand its presence in high-growth markets, particularly in sub-Saharan Africa, where rising connectivity, a young and growing population (expected to increase by 800 million by 2050), strong GDP growth (4.5 per cent growth expected between 2026 and 2030) and accelerating demand for content and connectivity continue to drive sector growth.
The JSE listing will increase CANAL+ liquidity and enable African investors to benefit from CANAL+ growth.
According to Mr Maxime Saada, CEO of CANAL+ said, “Joining the Johannesburg Stock Exchange is a statement of our ambition and illustrates our belief in Africa’s future and its creative industry.
“We are proud to become the first French company ever to list in Johannesburg and the only global media and entertainment company listed on the exchange.
“Following our listing on the London Stock Exchange 18 months ago, this dual listing reinforces our ambition to be a bridge between Europe and Africa and anchors our dual-continental approach, consolidating our unique position in the global media and entertainment industry,” he said.
He noted that CANAL+ serves more than 40 million subscribers and generates €9bn in annual revenue.
“Africa will be our growth engine for years to come, and we are dedicated to creating value on the continent and sharing it with our African partners, investors and the creative community. By welcoming African investors, we deepen our roots, diversify our investor base and lay the foundation for the next phase of our growth.”
Commenting on the listing, Ms Valdene Reddy, Group CEO of the JSE, said, “We are proud to welcome CANAL+ to the JSE and to mark the first listing of a French company on our exchange.
World
AfDB President Sees More African Nations Regaining Investment-Grade Ratings
By Adedapo Adesanya
The President of the African Development Bank (AfDB), Mr Sidi Ould Tah, says more African countries are likely to regain or achieve investment-grade credit ratings by next year as reforms begin to deliver results and economic growth accelerates.
Several African sovereigns have already been upgraded in recent months, including Nigeria. However, Nigeria is not yet near investment-grade status.
In May, S&P Global Ratings upgraded Nigeria’s sovereign credit ratings to ‘B’ with a stable outlook, citing structural reforms under President Bola Tinubu and key drivers like higher oil production and improved fiscal revenue.
The country is still five notches from investment-grade. Under S&P’s rating scale, the progression follows— B → B+ → BB- → BB → BB+ → BBB- (investment grade).
S&P raised Morocco to investment grade last year and increased South Africa by one level to BB in November. Ghana, Zambia, the Ivory Coast and Kenya have also benefited from positive rating action linked to fiscal, debt and economic reforms.
“We’re quite confident that the continent will continue to grow very strongly and that African countries will be better rated in the coming years,” Mr Ould Tah said in an interview with Bloomberg.
“We’ve seen Morocco receive investment grade during the last few months, and we expect other countries by next year to get toward that,” he added.
The outlook reflects improving fiscal positions and reforms implemented across countries on the continent, even as the conflict in the Middle East threatens to slow economic growth and raise costs for energy-importing nations. Better credit ratings can help countries borrow at lower rates and fund development projects.
The AfDB projects the continent’s gross domestic product expansion will accelerate to 4.4 per cent next year, if the conflict in the Middle East does not extend for a longer period. It expects the continent to slow to 4.2 per cent this year.
The war in Iran has benefited oil producers such as Nigeria, Angola and Gabon, while exerting pressure on the fiscal positions of net energy importers such as South Africa, Kenya, Ghana and Senegal.
Mr Ould Tah said the bank is ready to support countries facing budget constraints and high debt burdens due to the impact of the Iran crisis, including increasing credit lines to them.
“The board of directors of the bank will examine in the coming days how the bank can increase the volume of resources it will provide to its member countries in this specific situation,” he said.
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