Eastern African Regional countries of Kenya, Uganda, DRC, Ethiopia and S. Sudan have agreed to cooperate in infrastructure and trade projects to boost their economies.
Barely a month since 2016 took off and the prophesies of doom have begun casting a ‘troubled’ outlook for Africa.
BBC Africa’s Business Report said last week that “2015 was a tough year for African economies…and it could get worse this year, from lack of demand for the continent’s commodities, to lack of rain, from falling currencies to political instability.”
It suggested that ‘things will get worse’ and a few countries expected “to call on the International Monetary Fund (IMF) for help this year.”
But this has not attracted positive feedback from the continent. Rwanda’s President Paul Kagame tweeted yesterday evening dispelling the negativity.
He said, attracting over 500 reactions in support of his comment in a short moment, that “#Africa: It [economy] will be just fine!”
Kagame said Africa’s economy will thrive if Africans work hard to add value to their products, “and a lot more trade and investment/cooperation among African people.”
Already, Rwanda is looking into expanding trade relations between African countries.
Imports from neighbouring Uganda overtook India’s becoming the second after China and Kenya being the third.
Analysts are suggesting 2016 will be a hostile year for most African economies due to price declines of exports to international markets, especially minerals and agricultural products.
But such an observation is misguided. Some African economies ended the year 2015 with a positive outlook and a stable inflation, despite a biting dollar that has deflated most currencies.
Rwanda’s inflation rate has now dropped 0.5% to 4.5% in less than three weeks with food prices stabilizing as rains seem to be blessing the usually dry and unpredictable season.
Meanwhile, European stores have already expressed massive desire and demand for horticultural products. Turkey is interested in Africa’s tasty tropical fruits as Netherlands’s thirst from flowers grows even wider.
Simon Ethang’atta, a consultant with Floramats, a flower export company told this website that he is expecting two million flowers to be shipped at the Flora Holland, the global auction of flowers based in the Netherlands.
The far East and middle Europe economies are increasingly demanding for Tea and Coffee, of which Rwanda’s is on high demand.
The discussion on Africa of 2016 suggests Africa will need radical economic reforms or “funds from the likes of the IMF’ and ‘welfare of its citizens’.
Yet, the Brookings Global Report published on Tuesday indicated most African countries scoring above 70% in human development and 40% to 60% in economic stability.
“Rwanda exceed many of democratic counterparts in growth and socio-economic progress,” the report said.
Indeed, the report explained, Africa’s economic and political trends are not a one shoe fits all. “What is evident is that there is no single pathway, especially as regards political regimes, for launching growth and development in contemporary Africa.”
Rwanda is currently looking East to explore and attract investment from the Arab nations. On January 4, 2016, President Kagame met with HH Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces during a Sea Palace Barza.