Africa’s Growth Prospects. Africa’s gross domestic product (GDP) is expected to grow at 3.8 percent in 2019, which is a significant improvement over last year’s regional growth rate of 2.6 percent. Excluding the continent’s largest economies (Angola, Nigeria and South Africa), which are growing collectively at an average of 2.5 percent, the aggregate growth rate … Continue Reading
In November and December 2018, Madagascar went through two rounds of presidential elections. These were supposed to pull the country out of its marasmus of irregularly changing leaders that bedeviled its entire 20th century history. In 2001, election results were disputed: victory was claimed both by Didier Ratsiraka, the on-and-off President for the previous quarter … Continue Reading
In 1998, China announced its “go out” or “go global” policy aimed at encouraging its enterprises to invest overseas. In 2013 this policy was reinforced with China’s introduction of its One Belt, One Road (OBOR) or “Belt & Road” initiative, which seeks to enhance development and trade routes in the region, connecting China with other … Continue Reading
Over the last several decades, Foreign Direct Investment (FDI) by multinational companies has become a critical engine of economic growth in Africa, with FDI in the extractive industries particularly significant. A common response by local governments in Africa to increased FDI is “local content” requirements, which are designed to ensure the participation of the local … Continue Reading
While the nation has been transfixed by the confirmation hearings of Judge Brett Kavanaugh for a seat on the Supreme Court, Congress passed significant legislation on Africa that has attracted virtually no attention. On October 3, the Senate passed the Better Utilization of Investments Leading to Development Act, better known as the Build Act. President … Continue Reading
Witney Schneidman, Chair of Covington’s Africa Practice, recently participated in a China Global television show to assess the outcome of the 7th FOCAC meeting in Beijing that was held last week between Chinese leaders and more than 50 African leaders. LINK This post can also be found on CovAfrica, the firm’s blog on legal, regulatory, political … Continue Reading
“So, young people…my message to you is simple, keep believing, keep marching, keep building, keep raising your voice. Every generation has the opportunity to remake the world.” -President Barack Obama, 2018 Nelson Mandela Annual Lecture, South Africa Of the many statistics that define Africa’s complexity, this may be the most important one: With 200 million … Continue Reading
The 2018 AGOA Forum—named for the African Growth and Opportunity Act passed in 2000 and extended three years ago to 2025—could be a turning point in U.S.-African commercial relations. AGOA abolished import duties on more than 1,800 products manufactured in eligible countries sub-Saharan Africa (those with established or making continuous progress with market-based economy, rule of … Continue Reading
Witney Schneidman, Chair of Covington’s Africa Practice, recently participated in a number of media interviews where he discussed various business trends on the continent. Below are links to those interviews. An interview with CGTN that compared the commercial approaches of China and the United States in Africa. LINK CNBC-Africa’s Closing Bell had Witney Schneidman on … Continue Reading
There are ample studies that quantify Africa’s infrastructure deficit in terms of projects and funding. The World Bank estimates $93 billion of annual upkeep investment is needed for projects and Ernst and Young estimates that there are some 800 projects, largely in the power and transportation sectors, that require approximately $700 billion in new investments. … Continue Reading
Given recent developments in the global economy, especially Brexit and the Trump administration’s “America First” policy, it is worth assessing how Africa’s three largest commercial partners—China, the European Union, and the United States—are likely to impact the region in the near future as it relates to trade and investment trends. The China-in-Africa story may be … Continue Reading
In this blog, Covington’s Africa practice highlights ten key issues to watch in Africa in 2018. U.S. Policy: The derogatory remarks that President Trump made about Africans and Haitians, which he denies having said, create a negative image for the U.S. across the region as the year begins. Nevertheless, the administration will push forward on … Continue Reading
In late December, the Trump Administration released the “National Security Strategy of the United States of America.” The nearly 70 page document lays out the foreign policy priorities of the current Administration in both thematic and regional approaches. At the time of its release, the press focused on the strategy’s emphasis on Russia and China, … Continue Reading
The election of Cyril Ramaphosa as president of the African National Congress (ANC), and now the leading contender to become South Africa’s next president, was hailed as a “humbling rebuke” of South Africa’s President Jacob Zuma and a stark rejection of his policies, which have led to anemic economic growth, widespread corruption, and rising frustration in one … Continue Reading
Hurricane Harvey bombarded the Gulf Coast of the United States, leaving more than 250,000 people without power and causing substantial financial, physical, and emotional damage in its wake. Though record-breaking, Harvey was not a singular event. In 2017, severe rain events like Harvey have impacted many communities and businesses around the world. Africa is no … Continue Reading
The global trade environment is rapidly changing and already affecting the U.S.-Africa trade relationship. Indeed, the African Growth and Opportunity Act (AGOA) was not intended to be permanent. The program was designed as a stepping stone to a more mature trade relationship between the U.S. and the continent. AGOA’s expiration date in 2025 may seem … Continue Reading
Next week, some 40 African finance and trade ministers, along with a large contingent of senior U.S. government officials will descend upon the coastal city of Lomé, Togo for the annual African Growth and Opportunity Act (AGOA) Forum. There will be more eyes on this year’s Forum. Aside from Secretary Ross’ brief address at the … Continue Reading
Earlier this month Witney Schneidman appeared on CNBC Africa at the close of the G-20 meetings to discuss Germany’s plan for Africa. In this segment, Mr. Schneidman focuses on increasing foreign direct investment, and the related opportunities and challenges. The full clip can be found here. … Continue Reading
The contours of Trump’s Africa policy are emerging, although key appointments, such as the assistant secretary of state for African affairs, have yet to be made. On February 13, President Trump had telephone conversations with President Muhammadu Buhari of Nigeria and President Jacob Zuma of South Africa—his first with leaders from sub-Saharan Africa. The calls, … Continue Reading
The end of the 22-year reign of former Gambian President Yahya Jammeh, ushered in by the December election of opposition candidate Adama Barrow, is widely seen as a win for democracy in Africa. More so than anything else, this is a win for the Economic Community of West African States (“ECOWAS”) and regional self-policing in … Continue Reading
Nana Akufo-Addo, the 72-year-old leader of the New Patriotic Party (NPP), was elected Ghana’s president on December 9 by a margin of 1 million votes, affirming the country’s status as a leading democracy on the continent. The peaceful election supports former assistant secretary of state for African affairs and election observer Ambassador Johnnie Carson’s recent … Continue Reading
For Africa, at stake in this election of Donald Trump is the strong bipartisan consensus in Congress that has been the cornerstone of U.S. policy toward the continent for the last three administrations. This consensus, supported by Presidents Clinton, Bush, and Obama, was predicated on the notion that Africa has opportunities worth U.S. attention and … Continue Reading
According to the 2016 Global Slavery Index, an estimated 45.8 million men, women and children around the world are ensnared in some form of modern slavery, which includes slavery, servitude, forced labor and human trafficking. Sub-Saharan Africa is particularly vulnerable to this scourge: Estimates of modern slavery in Sub-Saharan Africa accounted for approximately 14 percent … Continue Reading
On May 25th, the Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, made the long-awaited announcement that the country would no longer peg the naira at N197 to the dollar. This change went into effect on Monday, which was the first time in recent history that the naira’s value was determined by market … Continue Reading
