Recently, the European Parliament voted for the European Union to expand trade deals with Africa, forwarding a report to the European Commission for consideration and possible resolution. This will no doubt be well received by their African counterparts who for long had requested better trade agreements between the two economic blocs as well as fair trade treatment towards the African countries.
Outside of the United States, the EU is the largest economy in the world and recent happenings in Ukraine have brought to the fore the opportunities available to Africa for trade. The ability to take advantage of that is another matter entirely. To discuss this Aly Khan Satchu, Africa Geo-economist and Macro Analyst and CEO of Rich Management joins Tolulope Adeleru-Balogun on Business Edge.
In Africa, the southern African country of Zimbabwe has announced plans to increase its interest rate to three digits – up to 200% from the previous high of 80%. Soaring inflation has been piling pressure on a population already struggling with shortages and has cast a shadow over President Emmerson Mnangagwa’s bid to revitalise an economy that suffered decades of decline and bouts of financial chaos under the leadership of former president Robert Mugabe.
At one time Zimbabwe’s inflation rate which is now 191% for June, was estimated at 79.6 billion per cent month-on-month and 89.7 sextillion per cent year-on-year in mid-November 2008. The country has struggled to address hyperinflation, which began in February 2007. Once again, Aly Khan Satchu provides context for the new fiscal policy of Zimbabwe.
On the Crypto Watch segment, Business Edge touches on the recent uptick in the price of cryptocurrency tokens, most especially Ether, which has stabilized somewhat after weeks of dipping. While this provides some reprove, it is important to observe what the future weeks would bring, considering the possibility of a further 75 basis points in July. The segment hosts Obinna Iwuno, Founder, Crypto Bootcamp Community.
Watch the full episode of Business Edge above.
