Africa Growth Prospects Are Key Attraction To Gulf Investors

While there have been some doubts whether African countries can maintain the pace of growth, Ernst & Young believes that 14 years of growth has not been a "flash in the pan" and that the trend will continue. EY expects Africa's combined GDP to hit USD 3 trillion by 2018, compared to just over USD 2 trillion currently.

Many Gulf businesses are well aware of Africa's promise.

Dubai's Emirates airline has emerged as the de facto 'national' airline of Sub-Saharan Africa, offering 198 flights a week to 22 destinations, while Abu Dhabi's Etihad Airways serves 11 destinations.

Logistics firm Aramex has been focused on expanding in Africa and said in January it would look to acquire firms in South Africa and east Africa.

Abraaj Capital, a major private equity investor in emerging markets, has been on the hunt in Africa in recent years, picking up stakes this year in Morocco's chocolate manufacturer Kool Food, and in Liberty Star Consumer Holdings, one of the largest unlisted food and personal care manufacturers in South Africa. Read More...

Zambia's V.P Guy Scott Becomes Africa's First White Head Of State In 20 Years

(Reuters) - Zambia's Guy Scott became Africa's first white head of state in 20 years on Wednesday after the president, "King Cobra" Michael Sata, died in a London hospital aged 77.

Scott, a Cambridge-educated economist born to Scottish parents, had been Sata's vice president. He will be interim leader until an election in three months, making him the first white African leader since South Africa's F.W. de Klerk lost to Nelson Mandela in the 1994 election that ended apartheid.

Scott, 70, is ineligible to run for the presidency in the election because of citizenship restrictions, leaving defense minister Edgar Lungu and finance minister Alexander Chikwanda the most likely contenders for the ruling Patriotic Front party's ticket, analysts say. Read Mores.

Dozens Volunteer For Ebola Test Vaccine

The world's most popular virus at the moment, Ebola,  seems to have touched the hearts of many as researchers try to find a vaccine in a bid to control the outbreak. GlaxoSmithKline (NYSE:GSK), (LSE:GSK) $GSK, has been working on several Ebola vaccine products in a bid to cut the spread of the deadly virus.

According to reports, the U.K -based pharmaceuticals company may have found a product that is now ready to test on healthy human beings. The research team is looking for 120 volunteers for the test program and reports indicate that more than 50 have already volunteered.

The city of Lausanne, Switzerland  will host the test program for GlaxoSmithKline product in what would be the largest study for leading experimental vaccine in fight against Ebola.

While reports indicate that a majority of the volunteers are mainly doctors and medical students, the fact that some people are willing to become test subjects in what could possibly emerge to be a death ticket shows that at last, scientists could be making a major milestone towards fighting Ebola.

World Health Organization (WHO) predicts that, if kept unchecked, Ebola could strike as many as 10,000 people per week by December this year. However, according to Dr. Blaise Genton, a professor at the University Hospital of Lausanne, who has worked on more than 20 vaccine trials, there could be some progress towards finding a vaccine. He believes that the current string of vaccine to be tested is very different from the others, and expressed a great deal of optimism on the product.

"We need to go very fast so that we may have something more than what we have now in terms of preventive measures", Genton Said. A shipment of vials of the vaccine is expected to arrive today or tomorrow (Thursday), enabling inoculations to begin this week. Unconfirmed reports suggest that GlaxoSmithKline's experimental shot is based on a live version of a genetically modified chimpanzee virus that contains an Ebola gene.

Meanwhile, the volunteers from the broader community will receive $845 or 800 Swiss Francs as compensation for time spent and travel expenses.

Kenya Will Review Growth Target After Rebasing: Says CBK Chief

Kenya will review its economic growth target for this year after it recalculated the size of the economy.

This is a move that led to a jump in annual growth rates, its central bank governor said on Monday.

Government officials put 2013's gross domestic product at 53.4 billion US dollars - 25 per cent higher than previously stated - after updating the base year for its calculation.

Growth for 2013 was revised up to 5.7 per cent from 4.7 per cent. The higher growth trend was confirmed when the statistics office said the economy expanded by 5.8 per cent in the second quarter, up from 4.4 per cent in the first three months. Read More...

Horn Of Africa Gets Development Boost As Lenders Pledge $8 Billion

According to Reuters, Global Development Lenders have pledged more than $8 billion to boost economic growth in eight countries in the Horn of Africa region.

The Horn of Africa region has faced several challenges over the last few decades including political and security related threats. Despite all these, the region is one of the most promising in the continent in terms of economic growth. However, in order to realize this potential, the Horn of Africa region would have to meet crucial development milestones like a clear infrastructure that links the eight countries.

The Horn of Africa region features some of the world's fastest growing economies including, and is comprised of Kenya, Uganda, Sudan, Eritrea, Somalia, Ethiopia, Djibouti and South Sudan.

The $8 billion pledged by global development lenders will be invested in the countries' infrastructure development, which
include projects like regional oil and gas pipelines, programmes to improve health and access to energy, as well as, the expansion of university education and job training in the coming years.

The countries of the Horn of Africa are making important yet unheralded progress in economic growth and political stability, United Nations Secretary General Ban Ki-moon said in a statement announcing the commitments.
Now is a crucial moment to support those efforts, end the cycles of conflict and poverty, and move from fragility to sustainability,” Ban added. 

Most of the countries in the Horn of Africa region have shown impressive signs of economic growth with Ethiopia, Kenya and Sudan being among the most promising. The countries in this region also boast a wealth of mineral deposits, which would become more accessible and easy to commercialize with improved infrastructure.

NB: Photo UNDP.

Fixing Egypt's Economy Not A Shot In The Dark, But Patience Is Essential

CAIRO, Oct 21 ( Reuters ) - Egypt's Prime Minister urged the country's citizens not to expect instant results from large-scale infrastructure projects the government has embarked on to create jobs and strengthen the economy.
Ibrahim Mehleb faces the monumental task of repairing finances battered by political upheaval, street protests and Islamist militant violence.

Photo Credit:Reuters/Al Youm Al Saabi Newspaper
He also has to persuade foreign companies that their cash will be safe in a country where complex laws, legal cases and stifling bureaucracy have entangled or scared away even the most adventurous investors. Read more..

EU To Raise Ebola Aid Budget To 1 Billion Euros

European Union leaders have agreed to double their financial aid directed to fight against Ebola in Africa to 1 billion Euros, CNBC Africa reported. "EU will increase financial help to 1 billion euros to fight Ebola in West Africa", the Chairman of EU Brussels Summit said on Friday via a twitter message.

There were criticisms that the 28 nations member union was not doing enough towards the fight against Ebola with the previous amount of aid pledged estimated at around 500 million euros. However, the latest developments show that the EU is now ready to show its commitment towards the fight against Ebola in West Africa.

The non-curable virus has no vaccine and has already killed thousands of people in West Africa, as the the western part of the continent continues to put measures towards prevention of spread. Mali has become the sixth nation in West Africa to report a case of Ebola as the World Health Organization (WHO) races to contain the outbreak.

This shows just how the deadly virus is spreading at an alarming rate never witnessed in the recent past. Several governments and organizations have dedicated a significant amount and effort towards containing the disease as market analysts fear that the virus could have a major impact on financial markets.

Kenya Power FY Pretax Profit Jumps 55.2 Percent

National utility firm, Kenya Power, has posted a 55.2 per cent rise in its pretax profits for its full year results.

Kenya Power, has posted a 55.2 per cent rise in its pretax profits for its full year results. PHOTO: Getty Images

The firm that supplies electric power and energy services across the country recorded 10.2 billion Kenyan shillings in its profit before tax. This positive performance is credited to higher tariffs, increased sales and enhanced systems efficiency. Read More

Sub-Saharan Africa Debt-GDP Ratios Remain Impressive, But It's Getting Worse For Some Countries

Sub-Saharan Africa Debt-GDP Ratios Remain Impressive, But It's Getting Worse For Some Countries.

According to a report published by IMF, the debt-GDP ratios in most sub-Saharan Africa countries remains low, but a few countries have experienced an increase in the rate of debt-GDP, thereby putting them in potential financial distress in the long-term.

Central Africa Republic and Malawi have the biggest debt-GDP ratios at more than 20 percent and more than 15 percent respectively, as illustrated in this 2012-2013 chart. (courtesy of IMF)

The high levels of debt-GDP ratio are putting long-term debt sustainability and macroeconomic stability at risk. However, a revision of the composition of primary spending could go a long way towards reducing this type of risk.

Generally, Africa remains one of the most promising in terms of economic growth prospects, with average annual growth estimates currently pegged at about 5.5 percent through 2014-2015. This means that it should remain attractive to investors for the foreseeable future.

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