Author: Contribution

Par Dr Mohamed H’MIDOUCHE* Recapitalizing African financial institutions remains a major challenge. With its new mechanism, the Arab Bank for Economic Development in Africa (BADEA) offers an innovative solution that paves the way for the continent’s progressive financial autonomy. Recapitalizing African regional banks has always been a puzzle: constrained public budgets, unpaid capital subscriptions, financial institutions lacking equity. By proposing to provide concessional loans to shareholder states so they can fulfill their commitments in regional or pan-African financial institutions, BADEA has introduced a major methodological innovation. This approach allows institutions to strengthen their capital without incurring debt, while enhancing…

By Professor Amath Ndiaye, FASEG – UCAD. Africans are often told that all they need is a national currency and to “open it like a tap” to finance schools, build roads, or pay civil servants. But this is an illusion. A currency is not a magical source: if too much is created without a link to real wealth, it causes inflation and, ultimately, an economic crisis. Many believe that wealthy countries, such as the United States, Japan, or France, freely resort to printing money. In reality: Conclusion: even wealthy countries have not found a miracle in unlimited money creation. Why…

Financial column by Michael Brown, Senior Research Strategist at Pepperstone The trading week started with a mix of strength and uncertainty. Stock markets continue to rise, sovereign bonds rally, the dollar weakens, and gold, the ultimate safe haven, has just hit a new historical high above $3,600 per ounce. Everything seems aligned for a “risk-on”...

By Alpha Seydi BA, Senior Expert in Strategic Communication and Public Relations. The debate on local content in Mauritania is now part of a strategic transformation context where political will is demonstrated through the adoption of new legal and institutional instruments. The recent promulgation of Law No. 2024-045 and its implementing decree marks an undeniable turning point in the management of the country’s extractive and energy industries. The fundamental objective of this reform is to align the exploitation of natural resources with a logic of creating shared value, where the population, businesses, and local industrial fabric become the primary beneficiaries,…

By Professor Amath Ndiaye, FASEG UCAD The aim is to analyze the trade balance of ECOWAS countries and to show that external imbalances are more the result of the outward-oriented structure of economies than of fixed or flexible exchange rates. Contrasting trade balancesExamination of average data for the period 2013-2023 highlights significant differences between UEMOA and ZMOA countries (source: WDI). Exchange rate regime and trade performanceThe figures clearly show that countries with a fixed exchange rate (UEMOA) on average have less pronounced deficits than those with a floating exchange rate (ZMOA). The exchange rate pegged to the euro has helped…

By Antonio Di Giacomo,Financial markets analyst for Latin America at XS – August 28, 2025. “The S&P 500 continues to defy uncertainty and set new records, reaching the 6,500 point threshold. The rally comes in a context of high volatility, fueled by Nvidia’s recent results and the release of key economic indicators in the United States. These factors have tested the market’s resilience, which, despite some occasional declines, remains positively oriented. Since the beginning of the month, the index has risen by more than 2.5%, reflecting investors’ confidence despite mixed outlooks. The market’s strength indicates that participants continue to favor…

By Dr. Jean TCHANGAI and Franck-Fidel N’DA. -Dr. Jean TCHANGAI is Director of Commitments in a banking group, Researcher, member of CREFE and LISST – Rural Dynamics (DR). -Franck-Fidel N’DA is Partner at Forvis Mazars West and Central Africa, in charge of the Consulting service line, Former Financial Director of a banking group. Size matters… but it doesn’t tell everything. Every year, bank rankings attract a lot of attention. And often, it’s the “Total Assets” that make the headlines. The higher a bank’s Total Assets, the bigger and more powerful it appears. At first glance, it seems simple. Total Assets…

By Dr. Abdourahmane Ba, International Development Consultant, Senior Expert in Policy Evaluation, Management, and Development Strategy. In this century, Africa is faced with a choice that goes beyond simple resource questions. The minerals needed for clean energy, soils capable of ensuring food security, sun suitable for powering industry, and a vast cohort of young people exist in abundance. However, abundance without strategy offers few levers. Sovereignty stems from the ability to transform assets into power, mastery of rules, norms, and terms of trade, as well as institutions aligning public interest with private initiative. Control of value chains lies at…

By Dr. Papa Demba Thiam, International Economist, Expert in Integrated Industrial Development through Value Chains, Thielle, Switzerland. Here is a strategic mistake that should no longer be made, under penalty of falling into the poverty trap in Senegal. Analyzing the IMF’s end-of-mission statement (August 19-26, 2025) gives me the following. New farcical concepts: “Wrong statement”, “systemic problems identified in the report of the Court of Auditors” and “undisclosed liabilities”. We no longer talk about “falsified accounts” or “hidden debts”, but about “identified systemic problems”! This is a radical change in language, which reduces the problem of evaluating the stock of…

By Jean-Pierre Mfomy, former banker, compensation expert. The chronic trend of many African states to turn to external sources for financing solutions, despite the latent production capacities and untapped growth potential in their economies, raises the following issue: the need to invent an endogenous financial development solution to promote optimal economic functioning while limiting reliance on external aid and debt. “Shadow banking”, also known as “shadow finance”, offers African states a model that they can judiciously “replicate” (without necessarily breaking ties with their major partners), by combining it with compensation, in order to bypass the monetary and financial constraints imposed…

On August 20, 2025, Mali requested the regional public debt market of the UEMOA to mobilize 20 billion CFA francs. The operation, which combined Treasury bills and assimilable bonds, generated a demand of 23.09 billion CFA francs, representing a coverage of 115%. Ultimately, Bamako chose to raise 18.79 billion, below its initial target. Behind these technical figures lies a strong political and economic reality: the CFA franc and the financial integration of the UEMOA provide states with a unique lever of resilience in Africa. *Higher demand than supply* The breakdown of the instruments is revealing: T-Bills (364 days): 13.12 billion…

By Yousif Awad Ahmed Mohamed. On any given day in Africa, a young innovator is sketching the blueprint for a solution that the world has yet to imagine. In a modest workshop, a prototype is taking shape — blending local knowledge with state-of-the art technology. In a bustling marketplace, a mobile platform connects producers directly with customers, bypassing long-standing barriers. In a co-working hub, a team is refining an idea that could transform access to clean energy, finance, and education.  These are not isolated moments. They are signals of a continent in motion, driven by the creativity, ambition, and resilience of its youth.  While many regions of the world face economic strain due to aging populations, Africa’s growing youth…

Encouraging macroeconomic performance in 2024 similar to that of 2022 and 2023 Strong growth in a context of inflation deceleration Despite the security and socio-political crisis in some member states, the Russo-Ukrainian war, and the situation in the Middle East, economic activity within the Union continued its dynamism with a growth rate of 6.3% in 2024 compared to 5.2% in 2023. This strength is linked to the positive trend in activity in all sectors, especially primary and secondary, driven by a good agricultural season and the dynamism of extractive activities. The Union’s average annual inflation rate decelerated to 3.5% in…

By Dr. Mohamed H’MIDOUCHEHonorary Consul of the Republic of Cape Verde to the Kingdom of Morocco. On July 5, 2025, marks a historic moment for the Republic of Cape Verde: the fiftieth anniversary of its independence. As Honorary Consul of Cape Verde in Morocco, I wish, on this solemn occasion, to extend my warmest congratulations to the Cape Verdean people, as well as to all its past and present leaders, for this half-century of independence marked by progress, peace, and institutional maturity. Since 1975, Cape Verde has overcome the challenges related to its island geography, the scarcity of its…

By Ndongo Samba Sylla and Peter Doyle. In early November 2024, we raised the alarm that the IMF forecast for inflation in Senegal was completely nonsensical. In its flagship global publication, the WEO published in October 2024, the IMF predicted that 12- month inflation in Senegal in December 2025 would be -13.4 percent and a year later 41.9 percent. There was no foundation to those forecasts. And indeed, 12-month inflation in Senegal in December 2024 was 0.8 percent, confirming if such were necessary that the IMF forecasts were way off track. We indicated at the time that this episode reflected…

Upon the launch of AFD’s “Economic Outlook 2025,” Financial Afrik had an extensive conversation with Rémy Rioux, the head of AFD Group, which includes the public bank, its subsidiary Proparco for the private sector, and Expertise France. With its novel structure and new funding mixes, it achieved a record year in 2024 on the continent with 5.5 billion euros committed out of 13 billion globally. Key findings from the study include the resilience of African economies after the COVID shock, growth prospects of 4% in 2025 (identical to Asia), and a debt ratio that has doubled from 30% to 60%…

We publish here Frannie Leautier’s op-ed on the presidency of the African Development Bank (AfDB). Among the five candidates, the former Vice-President of the World Bank and the African Development Bank believes, after weighing the pros and cons, that the Mauritanian Dr. Sidi Ould Tah is the best-prepared candidate. Africa is abundantly blessed with human and natural resources and has marked notable successes in economic growth, resilience, and innovation. The continent has achieved significant strides in regional integration and trade with the adoption of the AfCFTA. And Africa is shaping and leading its own destiny. But Africa has an urgent…

By Abshir Aden Ferro, CEO Fort Roche Group Somalia has officially excluded Ethiopia from the African Union Support and Stabilization Mission in Somalia (AUSSOM), which will replace the African Transition Mission in Somalia (ATMIS) on January 1, 2025. This decision, announced during a UN Security Council (UNSC) meeting on December 27, 2024, is rooted in Ethiopia’s controversial Memorandum of Understanding (MoU) with Somaliland and broader regional tensions. This marks a significant departure from Ethiopia’s longstanding role in Somali peacekeeping efforts. Ethiopia has been a core participant in missions dating back to AMISOM’s launch in 2007. While the Ankara Declaration, signed…

By *Ndongo Samba Sylla and *Peter Doyle The International Monetary Fund (IMF) recently launched its World Economic Outlook (WEO) in Washington with great fanfare. Owing to this institution’s major influence over the formulation of public policy in most countries worldwide, it is important to exercise vigilance regarding the quality of its analysis. For, as we all know, the lives of billions of people are affected by the IMF programs and the policy conditionalities and prescriptions attached to them. IMF analytical errors can therefore have devastating consequences. In Senegal, the IMF is back in the spotlight thanks to current debates on…

By Mohamed H’MIDOUCHE*, Executive Vice President of the Morocco-Bulgaria Chamber of Commerce & Industry. The electricity sector in Morocco showcases a dynamic mix of public and private entities engaged in various activities such as production, transmission, and distribution to cater to the nation’s electricity demands. By the end of 2022, the country boasted a production capacity of 10,830 MW, with key players including the National Office of Electricity and Drinking Water (ONEE), the Moroccan Agency for Sustainable Energy (MASEN), Independent Power Producers (IPPs), and self-producers. Transmission infrastructure, including interconnections with neighboring countries, plays a vital role in ensuring efficient and…

By Marc Thiriet, Director, Africa, Wärtsilä Energy It is no longer disputed that solar and wind power will be the foundation of Africa’s future energy systems. They are perfectly suited to the continent’s unique conditions and are already the most cost-competitive power option in almost all cases. This consensus spans academia, businesses, and policymakers who all recognize the potential of renewable energy to meet Africa’s growing needs sustainably. They also readily acknowledge the intermittent nature of renewables, and the associated need for flexible power capacity within the electricity networks to ensure safe and steady supply. It’s a good start. But…

By Mabingue Ngom The discourse surrounding Africa’s population size has the potential to be counterproductive. With a population of 1.3 billion people, Africa holds immense opportunities for growth and prosperity. However, to fully realize this potential, we must shift our focus from population growth to prioritizing the quality of life for Africans. By embracing sustainable development and addressing existing challenges, we can create a future filled with hope, opportunities, and shared success. Africa’s potential is not determined solely by its population size, but by the quality of life experienced by its citizens. Ignoring this fact would be a mistake, as…

By Economist Nea Tiililä, Finnfund,  For almost two years, the Sub-Saharan African economies have not received financing from international bond markets. Last week, there was a positive turn, as Ivory Coast successfully issued two Eurobonds. This raises hopes that the financing and debt crisis in Sub-Saharan Africa will begin to ease. The Covid-19 pandemic, the political uncertainty caused by the war in Ukraine, the globally increased prices and especially the increased interest rates in the United States and the appreciation of the US dollar have caused a severe funding gap to African countries. Together with the rise in interest rates…

By GEORGE ORIDO President William Ruto has appointed the Equity Bank CEO the new Chancellor of the newly minted Open University of Kenya. The President made the announcement at the Konza Technocity as he awarded it its charter yesterday.Reacting to the appointment, Dr Mwangi said he was humbled to have been given the opportunity to offer his services as a Vice Chancellor of the fully fledged Virtual University.“You have bestowed on me the trust to perform the function of a chancellor just when my service as the chancellor of Meru University has just ended having served from 2013 to 2023.…

The sovereign-debt crisis is hitting Africa particularly hard and could lead to a lost decade of development. While the G20 has tried to ease the burden, its Common Framework has proven ineffective and needs to be fixed, and international institutions must make room at the policymaking table for African countries. ADDIS ABABA– One in five people globally live in countries that are in debt distress or at risk of it. Two-thirds of low-income countries – most of them in Africa – fall into this category, while eight of the nine countries currently in debt distress are on the continent. A confluence of…

By Abdoulaye Bangoura, CPA Student Toronto metropolitan university. The previous month was marked by the crisis of U.S. regional banks, which are crucial for the growth and stability of the U.S. economy. They contribute 40% of lending in the U.S. market and account for 30% of U.S. bank-held assets. The recent turmoil that unfolded has given people a sense of insecurity and uncertainty, and some observers are wondering if we are back to living in a dark period of bank run and financial instability. In the span of two months, the third (SVB) and second largest (First Republic) banks both…

By Antonio Pedro* The confluence of shocks – the cascading impact of the COVID-19 pandemic, the war in Ukraine and severe natural disasters – have eroded Africa’s development gains, resulting in a staggering 149 million previously non-poor Africans now facing the risk of falling into poverty. The growing number of new poor and vulnerable people is making it harder to close the gap between the rich and the poor. Moreover, Africa currently accounts for the largest share of the world’s poor. This inevitably has a far-reaching impact on achieving the sustainable development goals and the vision of the Africa we want. The crisis,…

By Francis Kouakou I am however, appeased by corporate America who still see the trainfrom another window. Goldman Sachs said: the US economy will avoidarecession and instead move towards a “soft landing” where inflationmoderates but growth continues. I would like to set my arguments on the table. Why I think 2023 won’t see any recession?...

By Gilbert Houngbo ,Incoming Director-general of the International Labour Organization Founded in 1919, the International Labour Organisation (ILO) has for over a century worked to promote social and economic justice by setting international labour standards. It is one of the oldest specialised agencies of the United Nations and today has 187 member states. The ILO has a unique tripartite structure, involving representatives of governments, employers, and workers in all its discussions and policies. Over the last few decades, as the world of work has become more complex, the organisation has found it necessary to adapt to take in new realities and…