Angola and Mozambique may have very different economies but their current economic problems have the same two root causes: low energy prices and economic mismanagement.
Low oil prices have slashed Angolan revenues and slowed the development of gas and coal projects in Mozambique. At the same time, Maputo’s borrowing resulted in default in January, while Luanda’s continued opacity and state control has not created an economy sufficiently robust to weather the period of low oil prices more comfortably.
Most forecasters have become more pessimistic about the two countries’ prospects. The World Bank has downgraded its forecasts for Mozambican growth in 2017 and 2018 by 2.5% [...]
Global companies were supposed to be more efficient, leveraging resources from across the world, from places where they are best sourced, to create value on an unprecedented scale. That seemed to be the case in fact.
Western multinationals used cheaper labour in underdeveloped countries to manufacture products that relied on inputs from all over the world and technologies developed in their more expensive labour markets. Studies now suggest these advantages are being lost. Labour is no longer as cheap in many places.
In China, for example, lifestyles are becoming increasingly aspirational – more Chinese are now seeking the good life and consequently demanding higher [...]
At least 150 people have died of malaria in Zimbabwe over the past two months, with nearly 90,000 infections recorded, a government official said on Monday.
“We have seen increased cases of malaria due to the more rains received this year that increased the breeding grounds for mosquitoes,” Joseph Mberikunashe, malaria director in the ministry of health, told AFP.
Mberikunashe said 151 deaths and 89,261 malaria cases had been recorded in the past two months following heavy rains, which also caused deadly floods.
He said that while a rise in malaria cases was expected after the rains, some of the deaths may have been caused by delays in seeking medical [...]
South Africa’s MTN Group has appointed Rob Shuter as chief executive after the mobile phone network company announced a R2.6bn ($198m) loss in earnings in 2016. Shuter, who previously worked for London-headquartered Vodafone, was appointed on Monday to head up the revamped senior management team, following the completion of a strategic review.
MTN’s earnings loss was the first time in its 23-year history that the telecoms giant had reported a fall in income. Meanwhile, pre-tax profits fell from R36.5bn ($2.8bn) in 2015 to R18.2bn ($1.4bn). However, MTN’s consolidated revenue increased year-on-year by 0.4% in 2016 to R146bn ($11.1bn), while its subscriber base in Africa and the [...]