The issue has drawn attention because it comes after the IMF said an audit by Senegal’s Court of Auditors found “significant underreporting” of fiscal deficits and public debt between 2019 and 2023.

According to the IMF, the average fiscal deficit over that period was revised upward by 5.6 percentage points of GDP, while central government debt at the end of 2023 was revised from 74.4% to 99.7% of GDP. The Fund said the revision reflected previously undisclosed liabilities, including hidden loans equal to 25.3 percentage points of GDP. 

Those findings became central to Senegal’s discussions with the IMF after its earlier $1.8 billion programme was derailed. 

What is established on the public record is therefore twofold: Senegal’s debt and deficit figures for 2019-2023 were officially revised after an audit, and fresh questions have since arisen over the disclosure of newer financing operations. 

What has not been officially established in the same way is that the more recent €650 million transactions are identical in nature to the historical hidden liabilities identified by the audit. 

Senegal fits a broader African pattern

Senegal’s case fits into a broader African pattern in which debt distress has been worsened not only by the scale of borrowing, but by weak disclosure, delayed reporting, off-balance-sheet obligations and borrowing through state-owned entities. Across these cases, the central issue has often been whether official debt records fully captured the state’s true obligations at the time they were incurred.

Mozambique: the clearest hidden debt scandal

Mozambique remains the clearest documented example of hidden sovereign borrowing in Africa. The World Bank says the crisis erupted in 2016 after the discovery of previously undisclosed debts linked to three state-owned companies. Those companies contracted more than $2 billion in debt in 2013 and 2014, backed by government guarantees issued without parliamentary approval. The Bank said about $1.3 billion of that debt remained undisclosed until 2016. 

The consequences in Mozambique were severe and immediate. Donor confidence collapsed, external support was suspended, and the country entered a fiscal and debt crisis that became one of the continent’s most prominent debt scandals. Later legal proceedings reinforced the scale of the case. In 2024, London High Court rulings and legal summaries said Mozambique was entitled to about $825 million from Emirati-Lebanese multinational shipbuilding group Privinvest and related parties, plus an indemnity for future liabilities estimated at about $1.5 billion in litigation tied to the $2 billion borrowing scheme. 

Republic of Congo: oil-backed debt and incomplete reporting

A joint World Bank-IMF debt sustainability analysis said Congo had weaknesses in public debt management and claims reporting, highlighted by the disclosure in June 2017 of oil-backed loans contracted between 2014 and 2015. 

The analysis said the debt stock included oil-backed debt contracted by the state oil company Société Nationale des Pétroles du Congo (SNPC) and guaranteed by the central government. It also said some liabilities, including debt from other state-owned enterprises and non-guaranteed SNPC debt, were not included because information was limited. 

Congo’s case showed how borrowing routed through a state-owned oil company and backed by future oil revenues could complicate the visibility of public obligations. IMF and World Bank documents linked those reporting weaknesses to the country’s debt distress and restructuring challenges. 

Zambia: incomplete disclosure of creditor exposure

In 2021, Reuters, citing research by the China Africa Research Initiative, reported that Zambia’s debt to Chinese public and private lenders was about $6.6 billion, nearly double the amount previously disclosed by the former government. 

The same reporting said Chinese banks and funds had disbursed $7.77 billion in loans to Zambia and its state-owned enterprises from 2000 to August 2021, of which at least $1.2 billion had been repaid. The researchers said this did not change Zambia’s total debt load, but showed that the previous authorities had not been transparent about the heavy weight of Chinese financiers among external creditors. 

That distinction matters because not all transparency failures take the form of secret loans missing entirely from headline debt statistics. In Zambia, the issue was also the composition of the debt, the role of state-owned enterprises, and the scale of exposure to one creditor group, all of which became more important once the country entered default and restructuring talks required a clearer picture of the debt stock.

Debt transparency concerns are widening

The wider context is that international institutions have warned that public debt is becoming harder to track as governments use more complex financing arrangements. 

The World Bank said in its 2025 Radical Debt Transparency report that while the share of low-income countries publishing some debt data has risen from below 60% in 2020 to above 75%, only 25% disclose loan-level information on newly contracted debt. 

They also said that complex financing arrangements have complicated debt reporting, indicating that the issue is not only whether debt data is published, but also how much detail is made public.

Prabowo pointed to Pakistan’s response to similar pressures, including pay cuts for officials, remote working arrangements and delays to non-essential spending, as a model for Indonesia.

The proposal has since drawn support from several parties within the governing coalition. The Golkar Party, which holds a significant share of cabinet posts, said it was prepared to comply.

“If the country requires it, Golkar is ready for its members serving in the cabinet and the legislature to have their salaries cut,” secretary-general Muhammad Sarmuji said, describing the move as a signal of the government ’s “willingness to adapt.”

The National Mandate Party (PAN) also backed the plan. Deputy chair Eddy Soeparno said the party would “stand at the forefront” of efforts to ensure public acceptance if the policy is implemented.

Even the opposition Indonesian Democratic Party of Struggle (PDI-P) has not objected, though it stressed that any cuts should begin at the highest levels of government. Lawmaker Andreas Hugo Pareira said savings “should start with the top, from the President and Vice President down.”

Several cabinet members have echoed that stance. Human Rights Minister Natalius Pigai said he would accept a pay cut “even if I don’t receive a salary… for the greater good,” while Finance Minister Purbaya Yudhi Sadewa confirmed the government was reviewing the proposal’s details.

This narrow waterway between Iran and Oman carried about 13 million barrels a day of crude in 2025 — roughly 31% of global seaborne crude flows — according to energy consultancy Kpler.

Any impact, however, will be uneven across Asia, with the most exposed economies those that rely heavily on imported energy or Middle Eastern supplies.

Thailand

Thailand stands out as one of the most vulnerable economies in the region.

Nomura said Thailand’s net oil imports amount to about 4.7% of gross domestic product (GDP), the highest share in Asia. The Japanese investment bank estimates that every 10% rise in oil prices could worsen Thailand’s current account balance by around 0.5 percentage points of GDP.

Research from Bank of America Global Research paints a similar picture, describing Thailand as having Asia’s largest negative energy trade balance. Net energy imports were estimated at about 6% of GDP in 2025, leaving the country particularly exposed to swings in global oil and gas prices.

Thailand imports roughly $29 billion worth of oil annually, with more than $17 billion sourced from the Middle East.

South Korea

South Korea is also highly exposed due to its near-total reliance on imported fossil fuels.

About 98% of the country’s oil and gas consumption comes from overseas, according to the US Energy Information Administration. Disruptions to shipping routes or sustained price increases therefore pose significant risks to both its economy and financial markets.

Those concerns were reflected in South Korea’s stock market this week. The benchmark Kospi index plunged more than 12% in early trading on Wednesday amid fears that escalating conflict in the Middle East could disrupt global energy supplies and trade.

Shipping and logistics companies were among the hardest hit as tanker traffic through the Strait of Hormuz slowed sharply.

India

India is also considered vulnerable because of its heavy reliance on imported energy.

Nomura identified India among the Asian economies most exposed to higher oil prices, warning that sustained increases could significantly raise the country’s import bill.

In addition to higher crude costs, India could also face pressure from rising LNG prices as Asia competes with Europe for limited supplies if shipments through the Strait of Hormuz remain constrained.

Philippines

The Philippines faces particular exposure through its reliance on Middle Eastern crude.

Bank of America Global Research estimates that about 95% of the country’s oil imports come from the Middle East, making it one of the most dependent economies in the region on Gulf energy supplies.

Any disruption to shipping routes or sustained surge in prices could therefore translate quickly into higher domestic fuel costs and inflation.

Japan

Japan remains highly dependent on energy imports from the Middle East.

According to Bank of America Global Research, about 94% of Japan’s oil imports originate from the region. Analysts warn that supply disruptions or sustained price increases could therefore significantly affect Japan’s energy costs.

Nomura added that Japan typically maintains only two to four weeks of liquefied natural gas (LNG) stockpiles, limiting its ability to absorb prolonged supply disruptions.

Vietnam

Vietnam is also heavily reliant on Middle Eastern energy supplies.

Bank of America Global Research estimates that about 88% of the country’s oil imports come from the region, making it vulnerable to any disruption to shipments passing through the Strait of Hormuz.

Who could gain in Asia?

Not all Asian economies would be hit equally.

Malaysia, for example, could see higher government revenues as an oil and gas exporter if prices remain elevated.

Prime Minister Ousmane Sonko announced on Tuesday, February 24, in the National Assembly, the tabling of a bill aimed at increasing penalties for homosexual relations in Senegal. The proposed legislation would raise prison sentences from the current one to five years to a range of five to ten years. The announcement comes amid renewed arrests linked to “unnatural acts” and intentional transmission of HIV, reigniting debate over the country’s legal framework. The government’s approach has generated mixed reactions. Alioune Badara Coulibaly, spokesperson for the APR, criticised the move, arguing that it falls short of earlier commitments to criminalise homosexuality. He stated that the proposal appears to focus on strengthening existing penalties rather than undertaking a broader legal overhaul aligned with prior electoral promises.

Sonko condemns Morocco’s jailing of 18 Senegalese AFCON fans

Prime Minister Sonko has denounced Morocco’s sentencing of 18 Senegalese football supporters following incidents during the Africa Cup of Nations final in Rabat on January 19. The match was briefly suspended after Senegal players protested a late penalty decision in favour of Morocco, prompting some supporters to attempt to enter the pitch. The 18 fans were arrested and later sentenced to prison terms ranging from three months to one year, alongside fines of up to 5,000 dirhams ($545). Addressing parliament on February 24, Sonko said the matter appeared to go beyond sport and described the situation as regrettable between two friendly nations. He indicated that Senegal would seek a royal pardon from King Mohammed VI or request that the supporters serve their sentences in Senegal under existing bilateral agreements. The Senegal Football Association described the penalties as “incomprehensibly harsh", while defence lawyer Patrick Kabou said his clients denied wrongdoing and had initially awaited clarification of the charges. Some detainees reportedly went on a hunger strike. Senegal went on to win the final 1–0 after extra time when the match resumed.

Arrests reported in alleged homosexual networks 

Senegalese authorities have dismantled what has been described as a suspected homosexual network in Saint-Louis. According to local reports , three men aged between 43 and 52 are under investigation by the Research Section, with efforts ongoing to identify additional suspects. In Dakar, the first chamber of the Pikine-Guédiawaye court ordered the detention of four individuals identified as Abdourahmane Cissé, Abdoul Diop, known as “Dabakh”, Saliou Mbaye, known as “Zale”, and Mansour Baldé, known as “Zo Baldé”. The arrests come amid the National Assembly's tabling of a bill aimed at increasing penalties for homosexual relations.

Civil society seeks royal pardon for fans detained in Morocco

Justice Without Borders (JSF) on February 24 formally appealed to King Mohammed VI of Morocco to grant a royal pardon to 18 Senegalese football fans convicted following incidents at Prince Moulay Abdellah Stadium in Rabat. The organisation cited Article 58 of Morocco’s Constitution, which grants the sovereign the power of pardon, noting that the supporters’ convictions are final after they waived their right to appeal. JSF President El Amath Thiam framed the request within the context of longstanding diplomatic and historical ties between Senegal and Morocco. While affirming respect for Moroccan judicial sovereignty, the organisation expressed hope that clemency would offer a second chance to the supporters convicted under laws criminalising violence at sporting events.

Business leaders push for stronger public-private partnership at agricultural show

Senegalese business and institutional leaders are advocating a performance-driven model of participation at the International Agricultural Show (SIA). During working sessions at the Exhibition Park, stakeholders emphasised the need to translate exhibition presence into concrete investments and export contracts. Representatives from major institutions, including SAED, the Autonomous Port of Dakar, CNAAS, LBA, ITA, and FONGIP, took part in discussions alongside interprofessional organisations representing maize, cassava, rice, tomato, onion, and cowpea sectors. The delegation also visited Côte d’Ivoire’s pavilion, with Mboup highlighting the importance of synergy between government institutions and the private sector as a model for strengthening Senegal’s agricultural development.

“Unlike most minerals, gold combines deep liquidity, transparent pricing, and rapid monetisation,” the report notes, adding that this allows countries to convert domestic production directly into reserves instead of depending on “volatile external inflows.”

Despite its vast deposits, gold accounts for only about $70 billion, roughly 15%, of Africa’s total foreign exchange reserves. The AFC argues that stronger institutions, better oversight and more local refining could unlock greater benefits.

“The strategic value of Africa’s minerals lies in how they can be leveraged to deepen domestic value addition and support regional integration,” the report says.

Ghana is cited as an example. After establishing a Gold Board in 2025 to formalise artisanal production and reduce smuggling, the country has begun to rebuild its reserves, and its currency is beginning to stabilise.

The AFC concludes that “these dynamics are becoming increasingly relevant as central banks re-anchor reserves in gold,” offering Africa a potential pathway to stronger financial stability.

The scale of the win clears the way for Takaichi to push through legislation with minimal resistance, after she called a snap election just weeks into her premiership. It also allows her to override the upper house, which remains outside LDP control.

Market reaction was almost instantaneous. 

Japan’s Nikkei index hit a fresh record, rising nearly 4% to close above 56,000 points, as investors welcomed the prospect of political stability and faster policy decisions.

The rally spread across Asia, with gains in South Korea, Hong Kong and Australia , underscoring the regional impact of Japan’s election outcome.

Takaichi has promised a ¥21 trillion ($134 billion) stimulus package and a two-year suspension of Japan’s food sales tax, measures aimed at easing cost-of-living pressures but which have raised concerns about funding.

The election result also drew praise from U.S. President Donald Trump, who congratulated Takaichi on what he called a “historic” victory and applauded her conservative leadership.

Trump said Japan’s voters had delivered a clear mandate, adding that he looked forward to working with Takaichi on security and economic issues.

“She is a highly respected and very popular Leader. Sanae’s bold and wise decision to call for an Election paid off big time,” the U.S. president wrote on Truth Social.

“Sanae: It was my Honor to Endorse you and your Coalition,” he added. 

Why it matters

What’s in it for India

What’s in it for the EU

What’s driving the push now

What they said

Geopolitics behind it

What happens next

Once concluded, the India–EU FTA would mark a rare moment of trade liberalisation in a protectionist era — binding two uneasy but increasingly aligned partners as global commerce splinters.

Such a downturn could spill into the economy if falling markets cause consumers and businesses to cut back on spending, he said.

The IMF estimates that increased investment in AI and technology added about 0.3 percentage points to average annual US economic growth in the first three quarters of 2025. This helped offset the economic impact of a lengthy US government shutdown later in the year.

Gourinchas noted a growing gap between the US, where AI investment is surging, and other advanced economies. The IMF now expects US growth of 2.4 percent this year, while growth in the euro area is forecast at 1.3 percent, with Japan expected to grow more slowly.

China and India are also seeing relatively strong growth compared with other emerging markets, the IMF said, with most of the recent upward revision in global growth driven by the US and China.

Some developing economies benefited from rebounds in energy production, strong remittances and post-crisis recoveries. Others were dragged down by violence, political instability and structural weaknesses. 

Global South World reviewed the International Monetary Fund’s (IMF) 2025 projections — a closely watched outlook produced by the Washington-based lender that monitors economic developments worldwide — to identify the year’s strongest and weakest performers.

BIGGEST WINNERS

Republic of South Sudan (24.3%)

South Sudan’s surge reflects a rebound in oil production following earlier pipeline disruptions and conflict-related shutdowns, amplified by a low base. The IMF cautioned that the recovery remains fragile and almost entirely dependent on crude exports, leaving the economy highly exposed to price and security shocks.

Libya (15.6%)

Libya’s growth was driven by higher crude output after repeated blockades eased, boosting exports and government spending. In May, the North African country recorded a 12-year high in oil production, reaching 1.23 million barrels per day, underscoring the economy’s continued reliance on hydrocarbons.

Guyana (10.3%)

Guyana remained one of the world’s fastest-growing economies as new offshore oil projects came online, lifting exports and funding public investment. This followed a 43.4% expansion in 2024, when oil production reached 225 million barrels. Spillovers from the energy sector continued to fuel construction, manufacturing and agriculture, while non-oil GDP rose 13.1%, driven largely by government-led capital spending.

Kyrgyz Republic (8.0%)

Growth continued to be supported by the services sector, which accounts for nearly half of GDP. In 2025, services, goods production and rising tax revenues emerged as the economy’s main bright spots, helping offset external pressures.

Tajikistan (7.5%)

Tajikistan’s expansion was underpinned by growth in services and industry, optimism over energy investments, strong consumer demand and private-sector activity. Real GDP rose 8.2% in the first three quarters of 2025, while inflation remained contained at 2.8% year on year in September.

BIGGEST LOSERS

Haiti (-3.1%)

Haiti’s economy continued to contract as gang violence, political paralysis and collapsing institutions disrupted trade, investment and basic services. It remains one of the poorest countries in the Western Hemisphere, with nearly two-thirds of the population living below the poverty line.

Myanmar (-2.7%)

Myanmar remained in recession amid ongoing civil conflict, sanctions and capital flight following the 2021 military coup. The economy also grappled with the aftermath of a March earthquake that triggered large reconstruction needs. Inflation is expected to stay above 20% in the near term, further straining household budgets.

Equatorial Guinea (-1.6%)

The contraction reflected heightened global uncertainty and declining hydrocarbon production. Despite falling output, poverty is projected to ease modestly — from 57.0% in 2024 to 55.8% by 2027 — supported by expansion in labour-intensive agriculture and services.

Yemen (-1.5%)

Yemen’s economy remained under pressure from protracted conflict and disrupted oil exports. In areas controlled by the internationally recognised government, inflation continued to erode purchasing power. In Houthi-controlled regions, airstrikes on key ports and persistent liquidity shortages further constrained imports and access to essential goods.

Botswana (-0.9%)

Botswana slipped into contraction as weaker global diamond demand weighed on exports and fiscal revenues, compounded by drought pressures. Rising debt risks prompted the government to introduce austerity measures, tightening conditions further.

India, the world ’s fifth-largest economy, is facing elevated trade uncertainty as negotiations with the US continue to drag on. Any meaningful strengthening in the rupee is likely to depend on clarity over a bilateral trade agreement, economists say.

“We believe the rupee to be undervalued currently, with correction anticipated after there is more clarity on the US-India trade agreement,” said Hanna Luchnikava-Schorsch, head of Asia-Pacific economics at S&P Global Market Intelligence. 

India remains among the highest-tariffed countries globally, with average duties of around 50%, exceeding even those imposed on China . The steep levies have weighed on trade flows as talks between New Delhi and Washington stall.

After higher tariffs came into force in August, India’s exports to the US fell nearly 12% in September and 8.5% in October. Exports rebounded sharply in November, however, rising 22.6%, offering some relief to exporters.

Nomura’s chief economist for India and Asia ex-Japan, Sonal Varma, said the main risk is that India could lose momentum from global supply chain shifts. 

Firms focused on the US market may look elsewhere if high tariffs persist, she warned.

The rupee’s slide gathered pace earlier this month when it breached the psychologically important 90-per-dollar level. The currency began the year at 85.64 to the dollar and crossed the 91 mark in fewer than 15 trading sessions.

Foreign investors have remained largely bearish on India, with net outflows of more than $10 billion across asset classes this year, according to NSDL data. While India’s central bank has reiterated that market forces should determine the exchange rate, it reportedly intervened aggressively this week to curb the rupee’s fall.

Much of the online discussion focused less on how the man evaded traffic police and more on why he felt compelled to take such a risk. 

“It’s an act of survival,” wrote Kobia Muki, a sentiment echoed repeatedly across social media platforms.

Others criticised what they saw as a lack of collective care. 

“No one gave him a ride when the bus stopped or paid his fare, that’s the problem with us,” said Carol CM, shifting the focus from the individual to society at large.

Several commenters connected the incident to wider economic pressure. “Survival tactics in a harsh economy ,” Bobby Issa wrote, while Francis Odiango added: “Honestly Kenyans are undergoing hell…not because of one person but the system, bad policies and hired parliament.”

Economic woes

The reactions came against a backdrop of deepening economic strain. 

Kenya’s economic growth slowed to 4.0% in the third quarter of 2024, down from 6.0% a year earlier, after underperformance across most sectors, according to the Kenya National Bureau of Statistics. 

Construction activity contracted by 2.0%, while mining and quarrying shrank by 11.1%, adding pressure to already fragile job prospects.

Although growth in agriculture, transport, financial services, real estate, trade and hospitality helped cushion the slowdown, many households continue to feel the strain. Nationwide protests against proposed tax increases at the end of the second quarter disrupted major towns and turned violent in some areas, underscoring widespread public frustration.

For many online, the image of a man hanging onto a bus was not shocking so much as familiar — a stark snapshot of how far some are pushed simply to earn a living .

The measures are contained in Statutory Instrument 215 of 2025, formally titled the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, 2025. They establish a phased but accelerated localisation regime, compelling affected firms to divest at least 25% of their equity each year, beginning immediately.

From the date of gazetting, foreign-owned companies operating in the reserved sectors have 30 days to submit regularisation plans, setting out how they will comply with the new ownership requirements.

At the heart of the regulations is Zimbabwe’s attempt to reserve select industries for its citizens — most of which have long been dominated by small and medium-sized enterprises, but which have increasingly been taken over by foreign operators in recent years.

The sectors now fully reserved for indigenous citizens include:

Passenger transport services such as taxis and commuter buses, along with estate agencies, clearing and customs services, are also effectively restricted, though with limited exceptions.

In three sectors, foreign participation is permitted only where the business operates under a recognised international brand or franchise. These include passenger transport, estate agencies, and clearing and customs services.

For other sectors, foreign investors are not banned outright but face steep entry barriers designed to restrict participation to large-scale operations. Regulations set explicit minimum investment and employment thresholds :

Penalties

Existing foreign-owned businesses operating in reserved sectors are given three years to comply with the localisation timetable.

The regulations explicitly criminalise attempts to circumvent the law, including the use of fronting arrangements or nominee shareholders. Authorities are empowered to suspend or cancel operating licences for companies that fail to regularise their ownership structures within the stipulated period.

State media reports say enforcement will be strict, particularly in sectors such as artisanal mining, where the government has for years struggled to curb illegal operations and foreign syndicates, many of them involving Chinese nationals extracting gold, chrome and lithium.

Unaffected sectors

The government has been keen to stress that the regulations do not apply across the entire economy. Strategic and capital-intensive sectors — including banking, large-scale mining and other major industries — remain open to foreign ownership under existing laws.

Officials argue that the policy is a corrective measure rather than a reversal of Zimbabwe’s broader investment strategy, aimed at protecting informal and small-scale sectors from foreign encroachment.

While authorities frame the regulations as a long-overdue empowerment drive designed to restore economic agency to ordinary Zimbabweans, analysts warn that the abrupt scope and scale of the changes could unsettle investors and disrupt supply chains.

Forced divestments, tight deadlines and criminal penalties risk deepening perceptions of policy unpredictability in a country already grappling with capital shortages and fragile investor confidence.

Still, the message from Harare is unequivocal: in much of Zimbabwe’s day-to-day economy, local ownership is no longer optional — it is now mandatory.

For the IMF, the vision is to use the Shanghai Centre as a regional hub for research, policy dialogue and outreach, with a focus on emerging and middle-income economies. 

It is also expected to expand the Fund’s presence in a region that now drives more than half of global growth. China provided financial backing for the facility.

Chinese journalist Xu Zeyu said the opening is also the latest affirmation of China’s rising monetary status, noting that the renminbi joined the IMF’s Special Drawing Rights basket in 2016 with a 10.92% weight, later increased to 12.28% in 2022. 

This, Xu said, proved the currency’s growing acceptance as a “freely usable currency” and its impact on the global monetary landscape.

Johannes Wiegand, a veteran IMF economist, has been appointed the centre’s first director. Its opening was marked by a seminar on macroeconomic challenges in emerging markets, including structural change, finance and the rise of artificial intelligence.

Xu added that the Shanghai Centre could accelerate RMB internationalisation by deepening IMF research on regional financial connectivity and strengthening the yuan’s function as a regional anchor currency—providing Asian economies with more stable, autonomous trade settlement options.

The new outpost comes at a time when demand for IMF lending is at record levels. The Fund currently has around $162 billion in credit outstanding—its highest ever—with 86 countries owing money. Argentina, Ukraine and Egypt account for nearly half of the total.

Founded in 1944 to stabilise the post-war global economy, the IMF now has 191 members and a lending capacity of about $1 trillion. It finances its operations through quotas paid by member states, with wealthier countries acting as creditors and earning interest. Last year, roughly 50 such countries received around $5 billion in interest payments.

Argentina remains the IMF’s largest borrower, with debts of about $57 billion following years of economic crises and repeated bailouts. Ukraine , engulfed in war, owes more than $14bn, while Egypt has leaned on the Fund to manage inflation, currency shortages and fiscal stress.

For Beijing, hosting an IMF hub aligns with its push to expand influence in global economic institutions. Yet the Shanghai centre will not shift the Fund’s decision-making power, which remains anchored in Washington and weighted toward advanced economies.

For emerging Asian countries, the centre could offer easier access to technical support and policy advice, though it does not alter borrowing rules or the IMF’s often-criticised loan conditions.

More than 500 people have died , and hundreds more have been injured after devastating floods caused by rare cyclonic rains swept through Indonesia early last week. Rescue teams are still struggling to reach the worst-affected areas on the island of Sumatra, where thousands of residents remain cut off without access to essential supplies. Cyclone Senyar, described as an exceptionally rare tropical storm, triggered massive landslides and submerged thousands of homes and buildings. The effects of torrential rain extended beyond Indonesia, with Thailand, Malaysia, the Philippines, and Sri Lanka also hit by severe storms. Across Asia, more than 900 people have died this month as extreme weather continues to impact millions.

Indonesia posts smaller October trade surplus amid weak Chinese demand

Indonesia recorded a smaller-than-expected trade surplus in October as exports fell unexpectedly due to softer demand from China and reduced shipments of mining products, according to official data released Monday. The surplus stood at USD 2.4 billion, well below economists’ forecasts of USD 3.72 billion and down from September’s USD 4.34 billion, marking the smallest monthly surplus since April. Exports dropped 2.31% year-on-year to USD 24.24 billion, driven by lower coal and copper shipments. Analysts noted that exporters had accelerated shipments to the United States earlier in the year, ahead of tariff measures introduced in August. Operations at Freeport Indonesia’s Grasberg mine were also temporarily halted following a fatal mud-flow disaster in September, adding to the export slowdown.

Bank Indonesia warns of dim global outlook as protectionism reshapes trade

Bank Indonesia Governor Perry Warjiyo has cautioned that global economic uncertainty remains high, driven largely by protectionist policies in the United States, which he said are reshaping the global economic landscape. Speaking at the 2025 Bank Indonesia Annual Meeting, Warjiyo projected a “dim” economic outlook for 2026 and 2027, citing declining world trade, weakened multilateralism, slowing growth in major economies, and persistent inflation complicating monetary policy. He highlighted additional risks, including high government debt in developed countries, rising financial system vulnerabilities, and the rapid growth of private-sector cryptocurrencies amid limited regulation. Warjiyo stressed the need for strong policy responses to maintain stability, strengthen economic resilience, and promote sustainable growth.

Prabowo targets renovation of 60,000 schools next year

President Prabowo Subianto has announced a government plan to renovate at least 60,000 schools across Indonesia next year as part of a nationwide effort to improve education quality. Speaking at the 2025 National Teachers Day event on November 28, he noted that the current pace of upgrades, including the ongoing renovation of 16,000 schools this year, remains insufficient. He instructed the finance ministry to explore possibilities for expanding the programme’s budget beyond the current ceiling of Rp20 trillion (USD 1.2 billion). The government is also advancing its tuition-free Sekolah Rakyat (People’s School) initiative for underprivileged children, with 166 schools established so far, serving approximately 16,000 students. Both initiatives form part of the administration’s long-term strategy to strengthen human resources ahead of Indonesia’s 2045 national vision.

Indonesia re-elected to International Maritime Organisation Council 

Indonesia has been re-elected as a Category C member of the International Maritime Organisation (IMO) Council for the 2026–2027 term during the body’s thirty-fourth session in London. Transportation Minister Dudy Purwagandhi, who led the national delegation, confirmed that Indonesia secured 138 votes, placing fifth among 26 candidates. Category C includes states with significant interests in maritime transport and ensures balanced geographical representation. Purwagandhi said the result reflects Indonesia’s growing role as a global maritime hub and supports President Prabowo Subianto’s Asta Cita mission, prioritising maritime development. He reiterated Indonesia’s commitment to strengthening maritime safety, promoting sustainable port development, protecting the marine environment, and supporting seafarers’ welfare as part of global efforts to build a more resilient shipping sector.

Dr Touray attributed the projection to Nigeria’s ongoing economic reforms and renewed regional leadership under President Bola Tinubu. He also commended Nigeria for taking up a leadership role at a time of regional instability. 

He noted that ECOWAS forces had been deployed to Guinea-Bissau to help prevent escalation and support stability in the country. He recognised Nigeria’s active role in promoting peace, security , and development across the West African sub-region.

“While I celebrate this historic milestone, I want to particularly express appreciation to the leadership of Nigeria for advancing ECOWAS integration,” Dr Touray stated. “Despite the security challenges Nigeria is faced with and the loss of lives to terrorism, we continue to see commitment and the willingness to secure the West African region.”

According to the International Monetary Fund’s (IMF) World Economic Outlook data released in April 2025, the world’s top five economies by GDP are the United States ($30.50 trillion), China ($19.23 trillion), Germany ($4.74 trillion), India ($4.19 trillion), and Japan ($4.19 trillion).

As of April 2025, the top five economies in Africa are South Africa ($410 billion), Egypt ($347 billion), Algeria ($269 billion), Nigeria ($188 billion), and Morocco ($166 billion). In the third quarter of 2023, over 5% of Nigeria’s GDP was generated by oil.

Economists had expected a slightly stronger reading of 49.4, and while the figure is an incremental improvement from October, it highlights the depth of the slowdown. 

Industrial output this quarter has posted its weakest gains since early 2025, reflecting falling export orders and nervous domestic spending.

The latest survey also showed that activity across construction and services slipped into contraction for the first time in nearly three years. The non-manufacturing PMI fell to 49.5 in November, from 50.1 the month before, dragged down heavily by the property sector and residential services.

What’s behind the slump?

The data paints a picture of an economy losing momentum on multiple fronts. 

Retail sales growth has slowed for five consecutive months — the longest decline since the early Covid-19 lockdowns — signalling that consumers remain cautious despite government efforts to revive demand. 

Job uncertainty, falling house prices and weak confidence are weighing on household spending.

Trade strains continue to cloud the outlook. Exports unexpectedly contracted in November as global demand failed to compensate for a steep fall in shipments to the United States . 

Although tensions eased slightly after a temporary truce was struck in South Korea in October between Presidents Donald Trump and Xi Jinping, key issues — including controls over rare earth exports — remain unresolved, leaving the deal fragile.

Relations with Japan have also deteriorated, adding another layer of uncertainty. A diplomatic dispute in recent weeks has prompted Beijing to consider economic countermeasures, raising concerns over further disruption to regional supply chains.

Bright spots

There are pockets of resilience: high-tech manufacturing stayed in expansion territory at 50.1 for a tenth month, and sentiment indicators show some improvement. The index measuring expectations for production and operations climbed to 53.1, with aerospace equipment and non-ferrous metals reporting confidence levels above 57.

Smaller firms also showed signs of recovery, with the PMI for small enterprises jumping two points to 49.1 — the strongest reading in nearly six months. But large manufacturers, which drive the bulk of industrial output, weakened to 49.3, signalling uneven recovery across sectors.

The weak readings follow a bruising period for industry. Industrial profits fell 5.5% in October, the sharpest decline since June, and the property slump continues to erode demand for construction materials and household goods. Services activity, which had been buoyed by the October Golden Week holiday, has now given up much of that boost.

For policymakers, the dilemma remains familiar. 

Beijing has resisted launching major stimulus, arguing that growth is still on track to meet the government’s 5% target for the year. But with output stagnating and demand still faltering, pressure is growing for clearer support measures — and confidence that China’s manufacturing engine can restart after months of sputtering.

Under the plan, denominations such as Rp1,000 would become Rp1, and similar changes would apply to other notes, including Rp2,000, Rp5,000, and up to Rp100,000.

This initiative is part of the Finance Ministry’s 2025–2029 strategic programs. The bill is being developed under Finance Minister Regulation No. 70 of 2025 and is expected to be finalised by 2027. "A bill on Rupiah Rate Change (redenomination) is a carried-over bill planned for completion in 2027," the regulation stated.

The rupiah, which currently trades at around 16,717 per U.S. dollar (as of November 19), has high nominal figures that have led to inefficiencies in budgeting and financial transactions, according to reports .

Redenomination has been under discussion for more than a decade. A 2013 bill was delayed due to economic instability. In 2016 and again in 2023, Bank Indonesia expressed its readiness but indicated the need for an appropriate timing, with BI Governor Perry Warjiyo stating that “its execution must be cautious and consider economic and political stability.”

The transition process would be gradual. According to Bank Indonesia’s 2016 estimates, preparing new notes could take two years, and full implementation could extend up to seven more years. During this period, both old and new banknotes would be in circulation.

Economists have also noted potential inflation risks during the transition, particularly if businesses increase prices through rounding. In 2023, Teuku Rifky, an economist at the Institute for Economic and Social Research at the University of Indonesia, commented that while there were upsides to the redenomination, it was not an urgent issue for the Southeast Asian nation.

 “I don’t think there is a significant advantage in this redenomination, while the need or cost for execution is actually quite large,” he said .

The Communist Party of Cuba has officially convened its 11th Plenary Session of the Central Committee, marking another key moment in the island’s political calendar. This session reflects the country’s continuing effort to maintain centralised political coordination while addressing emerging national concerns. The announcement signals that the party leadership aims to evaluate ongoing national priorities and reinforce political alignment among its members. The decision to convene the 11th plenum underscores the CCP’s ongoing strategy of maintaining stable leadership structures amid evolving domestic and international conditions.

Party leadership outlines central committee agenda for the upcoming session

The 11th Plenary Session will bring together the Central Committee of the Communist Party, with the agenda reportedly focused on several internal and national issues. The explicit convening of the session indicates that party leadership intends to oversee critical aspects of governance, evaluate the political performance of institutions, and discuss the nation’s immediate priorities. This move continues a pattern in which the Central Committee meets to recalibrate strategies in response to changing socioeconomic pressures on the island.

Economic plan, hurricane damages, and “important issues” dominate PCC agenda

Among the detailed topics expected to be addressed at the plenary are Cuba’s national economic plan, the damages caused by Melissa, and other unspecified but “important issues.” This reflects the country’s need to manage multiple crises at once, economic stagnation, infrastructure challenges following natural disasters, and the broader strain on state resources. The reference to Melissa’s damages suggests a push to coordinate governmental response efforts and reinforce recovery initiatives. At the same time, highlighting “important issues” signals the party’s recognition that a wide range of political, economic, and social concerns now require attention at the highest levels of decision-making.

Government to conduct national review of its programme to correct distortions and boost the economy

A study and analysis of the Government Program will be carried out across Cuba with the intention of correcting distortions and implementing measures to boost the national economy. This initiative reflects an acknowledgement that structural problems and inefficiencies persist within the Cuban system and that a comprehensive review is necessary to stabilise conditions. The nationwide assessment indicates that authorities aim not only to diagnose the roots of the distortions but also to develop solutions that can strengthen the economic framework. This process is expected to engage officials at various administrative levels to ensure that corrections are implemented consistently across the nation.

Debate intensifies over the impact of U.S. unilateral sanctions

The question “Are the USA’s Unilateral Sanctions on Cuba a Good Thing?” reflects the ongoing debate, both domestically and internationally, about the real impact of U.S. restrictions on the island. The discussion continues to shape public discourse, as policymakers, analysts, and citizens evaluate whether the sanctions are causing undue suffering for the population, effectively pressuring the government, or creating new geopolitical tensions. By raising the issue at this moment, the roundup shows that sanctions remain central to Cuba’s economic difficulties and political narrative. The debate also highlights the growing pressure on policymakers to either negotiate relief mechanisms or adjust internal strategies to mitigate the effects of sanctions.

At the official launch in Accra on October 28, Bank of Ghana Governor Johnson Bandit Asiamah noted that the economy is showing renewed signs of stability. He described the anniversary as a milestone for national reflection and confidence in Ghana’s economic direction.

“Ghana has turned a decisive corner,” said Asiamah. He attributed the improvement to falling inflation and stronger foreign reserves, which he said have “provided a robust cushion against external volatility and restored our investor confidence.”

The initiative follows a period of economic difficulty. In August 2024, Bloomberg named the cedi as the worst-performing among Africa’s top currencies.

As of October 2025, the cedi has appreciated by approximately 37%. The World Bank reports it was the best-performing currency in sub-Saharan Africa during the first eight months of the year.

“We have learned painful lessons from fiscal indiscipline, overborrowing, and ignoring right principles, but today, the cedi has not only recovered. It has soared,” said Vice President Jane Naana Opoku-Agyemang.

Finance Minister Cassiel Ato Forson urged a reduction in reliance on foreign currency. “The Ghana Cedi remains the only legal tender. The US dollar is not our currency. The Cedi is our only currency,” he stated.

Bank of Ghana data showed that as of October 28, the cedi was trading at a market average of 10.85 Ghana cedis to 1 US dollar. This is a significant improvement compared to 16.15 Ghanaian cedi to 1 US dollar during the same period in 2024.

“Our commitment to fiscal discipline has contributed to the strengthening of the Ghana Cedi… We shall stay the course to ensure that the Ghana cedi remains stable,” the finance minister said.

China’s exports have stayed firm overall, rising 8.3% in September from a year earlier, but shipments to the US plunged 27%. Electric vehicle exports doubled, yet retail sales grew only 3% and spending during the Golden Week holiday was “mildly disappointing,” analysts at Morningstar said.

Residential sales fell 7.6% in the first nine months of the year, and S&P expects new home sales to drop a further 8% in 2025. Economists expect a central bank rate cut by year’s end as authorities look for ways to revive demand.

Across the Pacific , the US faces its own strain. The national debt has topped $38 trillion for the first time, as a government shutdown leaves hundreds of thousands of federal workers unpaid and delays key spending decisions.

“Reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties,” said Michael Peterson of the Peter G. Peterson Foundation. 

The debt has climbed from $34 trillion in January 2024, an unusually fast pace. The Trump administration says it is tightening spending and cutting the deficit. Treasury data show a $468 billion shortfall from April to September, the lowest since 2019. 

But with voter concern about debt rising, and China’s growth slowing, both superpowers head into APEC under pressure to prove they can keep their economies — and their rivalry — under control.

Some criticised President Ousmane Sonko’s administration for failing to deliver promised relief. “Everything is expensive, food, water , and electricity. Young people still have no jobs,” said protester Abdou Niang Thiam, adding, “One day, they will be held accountable.”

Many demanded transparency from the national electricity company of Senegal (SENELEC) over billing practices, chanting and marching across the city.

“ Trade tensions, financial market vulnerabilities, and weak fiscal positions are converging in ways that could quickly reverse hard-won gains,” he said while speaking at the Annual IMF Meetings.

Here are the four key threats outlined by the IMF:

1. Trade tensions and supply chain disruptions

Despite some optimism earlier this year, global trade remains at risk from new tariff measures and geopolitical rifts. The IMF noted that while recent U.S. tariffs have had a limited immediate impact due to exemptions, any escalation could knock 0.3 percentage points off global output.

Countries that rely heavily on exports or imported inputs could face inflationary pressures and a slower recovery if protectionism intensifies.

"Flaring up trade tensions with the potential for supply chain disruptions could quickly lower global output by as much as 0.3 percentage points," he said.

2. Financial market risks, the AI boom and a potential tech bubble

The IMF drew parallels with the late 1990s dot-com bubble, cautioning that today’s AI-driven surge in tech investments could start financial instability. Surging stock valuations, rapid capital inflows, and speculative investments risk a sharp market correction.

A sudden fall in tech markets, Gourinchas warned, could hurt household wealth, corporate investment, and global financial conditions . “There are echoes in the current tech investment surge of the dot-com boom of the late 1990s. It was the internet then, it is AI now. We're seeing surging valuations, booming investment, and strong consumption on the back of solid capital gains. The risk is that with stronger investment and consumption, a tighter monetary policy will be needed to contain price pressures. This is what happened in the late 1990s. There is also the flip side of the boom. Markets could reprice sharply,” he said.

3. China’s economic slowdown and structural weaknesses

The IMF flagged serious concerns about China, pointing to its property sector crisis, high local debt , and declining productivity. The country’s pivot to state-backed industrial sectors, such as electric vehicles and solar, has generated growth, but at a potential cost of misallocated resources and rising fiscal burden. China’s ongoing slowdown could spill over to commodity-exporting nations and global supply chains.

4. Fiscal fragility and pressure on central banks

Many countries have failed to rebuild fiscal buffers after the pandemic. With high public debt, rising interest costs, and new spending demands, from climate adaptation to defence, governments face increasing pressure. "As fiscal constraints become more binding, we are seeing rising pressures on central banks. Calls to ease monetary policy, whether to support activity or reduce government debt service at the expense of price stability, always backfire,” he added.

While investigations are still underway — with no prosecutions yet involving either private contractors or lawmakers — the fallout has already rippled across the economy. The Securities and Exchange Commission (SEC) reported that stock market investors lost P1.7 trillion ($29 billion) in just three weeks amid a “crisis of confidence.”

According to the Philippine Securities and Exchange Commission, stock market investors lost P1.7 trillion ($29 billion) in just three weeks due to the “crisis of confidence” spurred by the flood-control mess.

“It’s a stark reminder that corruption is a weapon of mass wealth destruction,” SEC Chair Francis Lim said. “When trust breaks down, capital dries up, and everyone — government , business and the public — pays the price.”

Despite the turbulence, most Philippine banks have kept their GDP growth forecasts steady, ranging between 5.3% and 5.7% for the year — still above Vietnam’s projected 5.25%.

Outside the country, however, international peers are starting to take notice, and caution.

A recent U.S. Department of State report described corruption as “a pervasive and long-standing problem in both the public and private sector,” citing the World Economic Forum’s finding that it remains one of the top obstacles to doing business in the country. 

The report also noted that a “complex, slow, redundant, and sometimes corrupt judicial system inhibits the timely and fair resolution of commercial disputes.”

In September, South Korea cancelled for the second time a $510 million loan to the Philippines for agricultural infrastructure, with President Lee Jae-Myung citing “risks that could lead to poor management and corruption.”

There was even a reported incident that a Filipino travelling to Norway was blocked from exchanging currency at an airport “because of the corruption and money laundering in the Philippines.”

Though the massive fraud in flood-control projects was exposed only recently, corruption is hardly new to the Philippines. The country has consistently ranked low in Transparency International’s Corruption Perceptions Index — 114th out of 180 countries since 2019 — a reflection of how deeply entrenched the problem remains.

He said Ethiopia’s economy expanded by 9.2% during the 2024/25 fiscal year, driven by strong growth in agriculture, industry, and other key sectors.

The president added that the East African nation completed the fiscal year without taking direct loans from the central bank, signalling fiscal discipline and economic stability, local outlet Fanamc reported.

According to BMI, a Fitch Solutions Company, Ethiopia’s economy is projected to grow by an average of 7.2% between 2025 and 2034. However, it warned that ongoing security challenges in the Horn of Africa—one of the world’s most unstable regions—could slow progress in Africa’s second most populous nation, home to over 130 million people.

In September, Ethiopia inaugurated the Grand Ethiopian Renaissance Dam (GERD), the continent’s largest hydroelectric project, with a capacity of 5,150 megawatts. 

The $5 billion project, located on the Blue Nile in the Benishangul-Gumuz region near the Sudanese border, is expected to provide electricity to millions of citizens.

After the devastating drought of 2024, agriculture is expected to rebound by at least 21% in 2025. This recovery will lift incomes for farmers, who make up more than half of the workforce , and improve hydropower output, a relief for sectors like manufacturing and services.

Zimbabwe is also benefiting from a global gold rally. Prices have jumped more than 40% this year, encouraging miners to expand output. BMI’s mining team now expects gold production to grow 4% in 2025, up from earlier forecasts of 3.5%. Tobacco exports are also rebounding, with production up 52% year-on-year to July 2025.

These trends are helping the Zimbabwe Gold (ZiG) currency hold steady. The exchange rate is expected to slip only slightly from ZWG25.8/USD at the end of 2024 to ZWG27.0/USD by the end of 2025. Additionally, taming inflation, which BMI sees easing from 93.8% in August to 45% by year’s end. With household incomes stabilising, private consumption growth is expected to climb to 4.8% in 2025, up from 3.8% previously forecast.

While price growth is easing, inflation will remain elevated at nearly 50% on average in 2026, limiting purchasing power and complicating investment decisions. A weaker-than-expected currency or new shocks to commodity prices could quickly reverse gains.

A fragile mandate amid divided politics

Mutharika’s Democratic Progressive Party (DPP) secured a decisive presidential win, but parliamentary seats are fragmented, with the Malawi Congress Party (MCP) and smaller groups holding significant sway. This means policy will require coalition building.

A resounding victory for Mutharika but will need cross-party cooperation to advance government's business in parliament.

The economic reality: a country under strain

A new analysis by Fitch Solutions’ BMI highlights just how precarious Malawi’s economy has become, underscoring the uphill battle for newly re-elected President Peter Mutharika. The data show Malawi’s budget and current account deficits have remained stubbornly high for years, with both hovering deep in negative territory since 2017.

Fiscal shortfalls consistently exceed 8–10% of GDP, while current account gaps further strain the balance sheet. Real GDP growth, meanwhile, remains modest, projected below 4% into 2026. This combination of sluggish growth and structural deficits leaves Malawi highly exposed to external shocks.

Malawi’s economy is among the most aid-dependent in Sub-Saharan Africa. U.S. foreign assistance and multilateral aid make up a large share of secondary income inflows. At the same time, Malawi has barely 1.5 months of import cover, critically below the IMF’s recommended threshold.

In contrast, regional peers such as Zambia and Tanzania enjoy stronger external buffers, with higher import cover and less reliance on aid.

What Mutharika promises and what stands in the way

Mutharika is remembered for delivering relative stability in his earlier term (2014–2020), when inflation fell to single digits and roads were built. Yet his legacy was clouded by allegations of cronyism, which may affect donor confidence today.

Economists say his government must prioritise:

Cautious optimism, high risks

Fitch Solutions warns that Mutharika will likely need “cross-party deals” to govern effectively, while policy missteps or stalled reforms could push the country into a deeper crisis. His administration must restore economic stability through tighter fiscal discipline, credible monetary policies , and structural reforms. Otherwise, Malawi risks deepening its dependence on aid and falling further behind its regional peers. overshadowing recovery.

The same trend was observed in real GDP per employed person, which slowed to 1.6% from 3.0% in the same period, indicating weaker productivity.

“It could indicate the needs of technological advancement, better capacity building and improved management practices in the economy for obtaining higher productivity so that it will drive higher economic growth,” the report stated.

Based on separate ASEAN data, the region’s population stood at 671.7 million in 2022, representing a 1.2% growth rate, faster than the 0.8% recorded the previous year.

These indicators reflect Asean’s progress under SDG 8, or Decent Work and Economic Growth, which seeks to promote inclusive growth, full employment and decent work for all.

Far from full employment

Under the same SDG, the report noted that the region remains far from full employment. The unemployment rate inched down only slightly, to 3.8% from 3.9% in 2016, which the report described as “relatively slow” progress.

Disparities remain between sexes and age groups. Unemployment among men was 3.7% in 2023, compared with 4.0% in 2016, while women’s unemployment rose to 3.5% from 2.6%.

Youth unemployment was the highest, standing at 8.5% in 2023, though down from 11.2% in 2016. The share of young people not engaged in education, employment or training also fell to 16.8% from 18.7%.

Southeast Asia remains a relatively young region, with a median age of 30.4, compared with the Asian average of 32.5 years. 

The figure is expected to fall further when Timor-Leste, Asia’s youngest democracy, which also happens to have one of the world’s youngest populations, formally joins the bloc.

BMI , a Fitch Solutions research firm, is projecting growth of 5.4% in 2025 and a dramatic jump to 7.4% in 2026, easily outpacing many of Zambia’s regional peers.

Inflation, which peaked at 16.8% in February, has eased to 12.3% by September, boosting household purchasing power.

Meanwhile, agriculture continues to recover strongly and hydroelectric production is improving the electricity supply, a long-standing pain point for businesses. But the single most important driver is copper, Zambia’s flagship export. Major mine expansions and foreign-backed investments are expected to push copper production up 10% next year, compared to a 6% rise this year.

“With copper prices climbing and production ramping up, Zambia is well positioned to ride a powerful commodity wave,” BMI analysts noted.

BMI forecasts a 150 basis point cut to the policy rate, down to 13% by year-end, as inflation stabilises within the 6 - 8% target range.

Cheaper credit would encourage household consumption and enable private sector investment, helping spread the benefits of growth beyond the mining belt.

Talaat highlighted strong performance in the information and communications technology (ICT) sector. In 2024, exports jumped 80 percent to $4.3 billion, the workforce expanded by 70 percent to over 160,000 specialists, and the number of ICT firms tripled to more than 180 companies in just three years. 

“These achievements underscore Egypt’s rising ability to attract both global and regional investment in outsourcing and digital innovation,” Talaat said.

The country intends to rely on a six-pillar AI strategy that aims to establish robust data governance systems, integrate AI into priority sectors such as healthcare and justice, train 30,000 AI specialists by 2030, raise digital literacy so that 25 percent of government workers and 36 percent of citizens can use AI tools effectively. 

Egypt is also boosting its tech manufacturing base, now home to 14 mobile phone factories. Production is expected to nearly triple from 3.5 million units in 2024 to 9 million in 2025, with exports of locally made devices beginning later this year. Free trade agreements are expected to give Egyptian products a competitive edge in global markets.

ECOWAS Chairman and President of Sierra Leone, Julius Maada Bio, visited Ghana to pay tribute to eight Ghanaians killed in a military helicopter crash on August 6 in the Ashanti Region. The victims included two ministers of state and six others on official duty. At the Jubilee House in Accra, President Bio signed the condolence book, laid a wreath, and lit a candle in solidarity with President John Mahama and the Ghanaian people. He affirmed Sierra Leone’s support during the national mourning period.

Pope Leo XIV sends condolences after Ghana tragedy

Pope Leo XIV has expressed condolences following the deaths of two ministers, senior officials, and military personnel in the August 6 helicopter crash. In a telegram to the Ghana Catholic Bishops’ Conference, signed by Cardinal Pietro Parolin, the Holy Father conveyed sympathy to the bereaved, assuring them of his prayers during this time of loss.

Research praises Ghana’s strong 2025 mid-year performance

IC Research has commended Ghana’s macroeconomic performance in the first half of 2025, citing progress in inflation control, exchange rate stability, interest rates, real GDP growth, and reserves. The leading economic and financial outfit in its review of Ghana’s 2025 Mid-Year Budget noted a sizable fiscal adjustment exceeding targets, improved spending control, and non-accumulation of arrears. Authorities maintained all end-2025 macro-fiscal targets, reflecting optimism for the remainder of the year.

Caretaker ministers appointed after loss of cabinet members

President John Dramani Mahama has appointed Finance Minister, Dr Cassiel Ato Forson, as Acting Defence Minister and former Energy Minister, Emmanuel Armah-Kofi Buah, as caretaker Minister of Environment, Science and Technology. The appointments follow the deaths of Dr Edward Omane Boamah and Dr Ibrahim Murtala Muhammed in last week’s Ghana Air Force helicopter crash. The move ensures continuity in governance during the nation's mourning period.

Government targets $1.2 billion investment in garment industry

Ghana aims to attract $1.2 billion in investments to create 150,000 jobs in the garment and textiles industry by 2030. Plans include reviving cotton cultivation on 50,000 hectares to strengthen the local raw material supply. Deputy Minister of Trade, Agribusiness and Industry, Samson Ahi, said the new policy framework will position Ghana as a hub for ethical and sustainable apparel manufacturing.

Here are the top 10 manufacturing nations building a competitive value chain ranging from automotive to agro-processing in 2025, according to a report by The African Exponent .  

Africa’s most industrialised economy leads in automotive, steel, chemicals, and food processing. Anchored by giants like Volkswagen SA, Sasol, ArcelorMittal, and Tiger Brands, South Africa benefits from advanced infrastructure, deep financial markets, and integration with global value chains.

With strong exports to Europe and the Middle East , Egypt excels in cement, pharmaceuticals, petrochemicals, and textiles. Key players include Elsewedy Electric, Cleopatra Group, and EIPICO, driven by pro-industrial policy reforms and a skilled workforce.

Nigeria boasts of Africa’s largest domestic market with flagship projects like Dangote Refinery and the expansion of BUA Group are reshaping its industrial landscape. Top sectors include cement, food and beverages, consumer goods, and oil refining.

A regional hub for automotive and aerospace, Morocco leverages EU trade ties and foreign investment, including major firms like; Renault Morocco, PSA Group, and Bombardier Morocco. Government incentives and industrial zones further fuel growth.

East Africa’s industrial anchor excels in agro-processing, pharmaceuticals, and plastics. With Nairobi as a tech and manufacturing hub, top firms like Bidco Africa, Brookside Dairy, and Devki Group are scaling up regional production.

Combining public and private manufacturing, Algeria is strong in cement, steel, electronics, and automotive assembly. Firms such as Groupe Cevital, SNVI, and Hyundai Algeria lead operations supported by national infrastructure .

Industrial parks and low labour costs attract global manufacturers in textiles, leather, and food processing. Supported by state-driven policies, companies like Ayka Addis and Derba Cement underscore Ethiopia’s export-oriented push.

Programs like “One District One Factory” have boosted agro-processing, cocoa manufacturing, and pharmaceuticals in Ghana. Major companies include Kasapreko, Fan Milk, and Nestlé Ghana, driving value-added exports.

A niche player in automotive components, electronics, and textiles, Tunisia supplies EU markets with high-value light manufacturing. Companies such as Coficab, Poulina Group, and STIP are expanding their continental footprint.

Driven by cement, agro-processing, steel, and consumer goods, Zambia’s industrial base is growing. Firms like Zambeef, Trade Kings, and Dangote Zambia are benefiting from government-led industrial incentives.

Africa’s manufacturing momentum is shaped by local policies, international investment, and the need to create value beyond raw material exports.

Dr. Touray stated that global economic growth is expected to slow to 2.8% in 2025 from 3.3% in 2024, before rising slightly to 3.0% in 2026. Global inflation is projected to ease from 5.7% in 2024 to 4.3% in 2025. In emerging and developing economies, inflation is expected to decline from 5.5% in 2024 to 4.6% in 2025.

“In sub-Saharan Africa, inflation is projected to decline significantly from 18.3% in 2024 to 13.3% in 2025,” he said . He also projected a further decline to 11.5% in 2026, attributing the trend to tighter monetary policies and falling food and energy prices.

“Equally, inflation is expected to decline to 12.8% in 2025, compared to 18.4% in 2024,” he added.

On the regional situation, Dr. Touray said, “The political and security context of the region is also marked by the effective withdrawal of Burkina Faso, Mali and Niger from ECOWAS, though the initial tensions generated by their withdrawal is waning down, giving way to a more constructive engagement.”

“Activities of terrorists and armed groups have intensified, with repeated attacks against security forces in the northern part of Benin Republic; the resurgence of Boko Haram in the northeastern part of Nigeria, and the advent of the ‘Lakurawa’ armed groups, disrupting lives and livelihoods in the northwestern part of Nigeria,” he said, as he expressed concerns over ongoing violence. 

Dr. Touray also referenced global tensions, including the war in Ukraine and U.S. policy shifts, which he said are affecting the region.

He reported that each ECOWAS member state received $100,000 under the ECOWAS Cross-Border Cooperation Support Programme. “The Gambia, Ghana and Senegal received the second tranche of the disbursement to finance various projects,” he said.

The signing took place on the sidelines of the Bank’s annual general meetings in Abidjan.

The funds will target key development areas, including “sustainable agriculture, water security, environmental protection, and institutional capacity building,” the statement added.

“The World Bank is engaged in this process (Structured Dialogue) to fully re-engage in Zimbabwe and provide the government with the necessary concessional financing to help accelerate growth and poverty reduction,” said Fernandes.

Adding that, “However, we would like to reinforce that sufficient progress under each of the three pillars of the Structured Dialogue Platform for arrears clearance and debt restructuring is critical to realise this.”

The three pillars include, economic growth and stability reforms, governance and land tenure reforms, compensation of former farm owners and resolution of Bilateral Investment Promotion and Protection Agreements (BIPPAs), Herald Online reports.

Fernandes called on Zimbabwe’s senior leadership to maintain commitment to these pillars, saying, “We press on Zimbabwe’s senior leadership to continue and reinforce their commitment to each of the three pillars, to ensure their prompt success.”

Finance Minister Mthuli Ncube said Zimbabwe is preparing for an IMF mission expected next week and hopes to initiate an SMP by July. “We are looking for sponsors who can give us US$2.5 billion bridge finance,” he added.

Fernandes acknowledged the costs of reforms, warning that they “are not without short-term sacrifices,” including spending cuts and tax hikes, which “are often borne disproportionately by the poor.” She noted the development of the National Social Registry (ZISO) as a positive step to help target social assistance to vulnerable populations.

Guatemalan President Bernardo Arévalo de León announced that on May 22, Guatemala will sign an agreement with the U.S. to modernise its ports, beginning with the expansion and renovation of Puerto Quetzal. He called it a historic step toward creating better commercial conditions for both Guatemalans and international investors.

India to donate 600 artificial limbs to Guatemala in humanitarian effort

India will provide around 600 artificial limbs in a humanitarian initiative set to begin in October 2025 in Guatemala. The 50-day camp, organized by Bhagwan Mahaveer Viklang Sahayata Samiti (BMVSS), will take place at Guatemala’s Ministry of Defence and marks the 33rd global camp under India’s India for Humanity programme. The initiative coincides with the 53rd anniversary of India–Guatemala diplomatic ties and aims to strengthen bilateral cooperation.

Community culinary tours in Guatemala

Martsam Travel’s “From Market to Mayan Table” offers an immersive culinary journey through Guatemala, blending gastronomy, heritage, and regenerative tourism. Starting in Antigua, travellers join Mayan women for market tours and home-cooked meals, exploring traditional ingredients and cooking techniques. The experience includes hands-on preparation of ancestral dishes in a restored colonial home and features handmade aprons from a Maya sewing cooperative, symbolising cultural connection and community support.

Central America Festival highlights literature and dialogue in Guatemala

The Central America Festival kicked off in Guatemala , spotlighting literature, cultural exchange, and democratic values. Featuring over 60 writers and artists from Latin America and Europe, the event includes book launches, panel discussions, and artistic dialogues. Highlights include Nicaraguan author Gioconda Belli’s new novel, a panel with EU and Costa Rican leaders, and a tribute to Nobel laureate Miguel Ángel Asturias. Expanding beyond Guatemala City, events also take place in Totonicapán to engage broader communities. The festival runs through May 24.

IDB Invest finances Laki to strengthen SCF in Guatemala, El Salvador, and Honduras

IDB Invest has approved up to $50 million in financing for Laki and its subsidiaries to boost short-term funding access for MSME suppliers in El Salvador, Guatemala, and Honduras. The package includes a $10M supplier factoring facility, a $20M revolving import credit line, and a $20M uncommitted facility for future capital and sustainability projects. Advisory support will also help enhance ESG practices and operational transparency.

According to the committee, the Ministry of Health urgently needs $250 million to sustain HIV and TB programs currently at risk due to the funding freeze. Another $65 million is required to hire 8,500 UHC health workers, while $31 million is needed to procure essential commodities, including HIV treatments, family planning supplies, and vaccines . Committee

Chair Dr. James Nyikal stressed that this amount reflects Kenya’s counterpart funding obligations with GAVI and UNICEF. “If we don’t secure this funding, we’ll incur even higher costs later,” Dr. Nyikal warned during a budget committee briefing.

The funding crisis comes as UHC contract workers continue a prolonged strike, demanding permanent employment, salary harmonisation, and the clearance of overdue gratuities. They are also seeking a dedicated budgetary allocation in the 2025/26 fiscal year to ensure their transition into the formal workforce .

While the Treasury has allocated $29 million for UHC worker stipends, the Health Ministry estimates it will need an additional $37 million to cover end-of-contract payouts by May 2026, and $28 million more to absorb the workforce into permanent, pensionable positions.

The IMF mission to Kinshasa, led by Calixte Ahokpossi, IMF Mission Chief for the DRC, conducted a review from April 30 to May 13, 2025, which focused on assessing the progress made under the ECF-supported program initiated following the conclusion of the previous arrangement in 2024.

According to Mr. Ahokpossi, the Congolese economy has demonstrated resilience in the face of persistent challenges. “Economic activity has remained resilient, with robust GDP growth of 6.5 percent in 2024. Growth is projected to remain above 5 percent in 2025, driven by continued dynamism in the extractive sector,” he said in a statement released on May 13.

Inflation fell to single-digit levels in April 2025, the first of its kind since July 2022.

Despite the positive economic trajectory, the DRC continues to grapple with the fallout from intensified conflict in its eastern regions. “Since the last quarter of 2024, the DRC has faced an escalation of armed conflict in its eastern part. The intensification of hostilities has cost the lives of thousands and caused severe humanitarian, social, and economic repercussions, particularly in the provinces of North and South Kivu,” Ahokpossi noted.

The new agreement follows the conclusion of the sixth and final review of the previous ECF-supported program launched in 2021, valued at USD 1.5 billion. That program helped significantly boost the DRC’s international reserves from $1.7 billion to $6 billion, which contributed to gradual macroeconomic stabilization despite challenging circumstances.

Tunisia’s economy expanded by 1.6% year-on-year in Q1 2025, driven by strong agricultural performance. Agriculture contributed 0.59% to GDP growth, with industrial output also rising by 0.5%. However, quarter-on-quarter growth dipped by 0.2% compared to Q4 2024, per INS data. Unemployment fell to 15.7%, while youth unemployment dropped to 37.7% and graduate joblessness to 23.5%. The government plans to resume public sector hiring for the first time since 2017. Minister Riyadh Chaoud confirmed that the 2025 budget includes 20,000 public job openings. The new hires are expected in public administration and state-owned enterprises. Officials hope this will ease Tunisia’s long-standing employment challenges. The data reflects cautious optimism amid persistent economic pressures. Observers stress the need for broader structural reforms to sustain gains.

Tunisia drops in global press freedom index

Tunisia fell 11 places to rank 129th in RSF’s 2025 World Press Freedom Index. RSF cited rising political, judicial, and economic pressure on journalists and outlets. “Self-censorship is spreading; fear is reshaping Tunisia’s media landscape,” RSF said. Several journalists remain jailed, including Sonia Dahmani and Chadha Hadj Mbarek. Boughalleb was jailed for criticising the Religious Affairs Ministry; he remains on trial. The 2022-54 Decree Law is now frequently used to prosecute media professionals. RSF warned of “systemic misuse” of outdated laws to silence dissent. Journalist arrests and suspended programs have sparked local and global concern. Media unions are calling for the repeal of repressive legal instruments. Press advocates say Tunisia risks democratic backsliding if trends continue.

President orders agricultural land audit

President Kais Saied has called for a full audit of Tunisia’s agricultural land assets. The audit will assess past distributions and investigate illegal land seizures. It coincides with the 61st anniversary of Law No. 5, which restricts land ownership to Tunisians. Saied said the audit must include all state properties, not just farmland. He noted that previous audit efforts were obstructed by vested interests. “This will ensure self-sufficiency and open global market access,” he said. The Ministry of Agriculture and Ministry of State Property will co-lead the audit, Agency Tunis Afrique Press reports. The President linked land justice to national economic sovereignty. He underscored the urgency of restoring legal clarity and halting exploitation.

Public transport sector overhaul

Tunisia’s public transport system is under review, with new buses on the way. President Kais Saied met with Transport Minister Rachid Amri to discuss plans. The goal is to ease commuting pressures as the system nears total collapse. He ordered that all barriers to bus imports be lifted immediately, Agency Tunis Afrique Press reports. The meeting also addressed persistent disruptions at national airline Tunisair. Saied rejected calls to privatise the carrier or move Tunis-Carthage Airport. “Tunisair must remain a national symbol of pride,” he stated. He vowed to shield public companies from sell-offs amid reform calls. The president framed the effort as part of a "national liberation" strategy. Officials say public services will be restored without foreign control.

Social justice take priority

President Saied has reiterated that social justice must guide all reforms in Tunisia. Meeting Prime Minister Zenzri, he warned against fragmented, sectoral solutions. “Only a national, collective approach can resolve the people’s grievances,” he said. He reviewed multiple draft laws and criticised past governments for diversion tactics. Saied recalled how revolutionary demands were reduced to shallow economic concessions. He accused remnants of the old regime of exploiting the system for personal gain. “Power is seen as spoils by those who have no love for the nation,” he said. He urged Tunisians to remain vigilant and pursue deep, systemic change. The President stressed that justice must be both structural and moral. Observers see this rhetoric as setting the tone for future political reforms.

The discussions come as the implementation period of the African Development Fund-16 (ADF-16) enters its final phase with four new operations valued at a total of $187 million scheduled for approval by the AfDB Board before December 2025, Sidwaya reports.

Burkina Faso's Minister of Economy, Aboubakar Nacanabo, indicated that the ISP mobilised over $700 million, surpassing the projected $682 million. These funds have supported 15 projects across sectors, including rural development, infrastructure, energy, water and sanitation, education, health, and governance.

Since beginning its operations in Burkina Faso in 1970, the AfDB has approved 115 projects totaling $1.8 billion. Speaking at the meeting, AfDB Vice President for Regional Development, Integration and Business Delivery Nnenna Nwabufo, described the current portfolio as "diversified," noting improvements in project quality and an increase of 8.34 million UA in Burkina Faso’s ADF allocation for 2025.

"The volume and diversity of commitments underscore the strength of the partnership between the Bank and Burkina Faso over more than five decades," Nwabufo said. She reaffirmed the bank’s commitment to supporting the country’s development priorities.

Minister Nacanabo echoed this sentiment, calling the results "a reflection of the excellent quality of cooperation." He noted that the ISP provides a framework for clear, predictable interventions and enables early action to address implementation challenges.

The AfDB delegation assured continued support aligned with Burkina Faso’s national development agenda.

Workers clearing archives for a future Supreme Court Museum in Argentina recently discovered boxes in the basement of the Supreme Court containing Nazi-era materials. The boxes, stored for over 80 years, include swastika-stamped notebooks, propaganda, and documents believed to support the spread of Adolf Hitler’s ideology in Argentina during World War II. According to an official court statement, the contents may provide new information about Nazi activities in the country during the early 1940s.

Fitch upgrades Argentina's credit rating amid economic recovery and IMF support

Fitch Ratings has upgraded Argentina’s long-term foreign currency debt rating from CCC to CCC+, citing rapid economic recovery under President Javier Milei. The decision reflects a new $20 billion agreement with the IMF, including an initial $12 billion disbursement that raised reserves to $38 billion and the implementation of a liberalised exchange rate band between AR$1,000 and AR$1,400 per US dollar. The agency highlighted stronger-than-expected disinflation and credit reactivation. However, it also noted ongoing challenges, such as uncertainty in sustained reserve accumulation and limited access to external financing.

Argentina’s peso trades near official rate as markets respond to fiscal policy

On May 13, Argentina’s blue dollar exchange rate stood at 1,170 ARS/USD, just 1.3% above the official rate of 1,155, reflecting increased investor confidence. The previous day, the official rate closed at 1,150 while the blue dollar declined 0.43% to 1,170. The S&P Merval rose 5.49%, and Argentine equities listed on the NYSE gained 4.79%. Government bonds also advanced slightly. However, market optimism was tempered by corporate debt concerns, notably a $20 million bond default by a utility company. The peso’s relative stability is supported by President Javier Milei’s fiscal measures, including spending controls and export tax reductions. Nevertheless, high—albeit decelerating—inflation and approximately $275 billion in offshore wealth continue to pose risks of capital flight.

Telefonica posts €1.3 billion Q1 loss due to asset write-downs in Peru and Argentina

Spanish telecom company Telefonica (TEF.MC) reported a first-quarter net loss of €1.3 billion ($1.45 billion) on Wednesday, May 14, in line with analyst estimates, following asset write-downs in Peru and Argentina. Analysts had projected a loss of €1.32 billion, according to a company-provided consensus. Revenue declined 2.9% year-on-year to €9.22 billion, slightly exceeding expectations of €9.1 billion. Shares fell 0.4% in early trading.

Argentina’s central bank expects inflation slowdown to continue into May

Argentina’s central bank vice president, Vladimir Werning, stated on Tuesday, May 13, that the deceleration in inflation observed in April is expected to persist through May. The national statistics agency will release official April inflation figures on Wednesday, which will confirm whether this trend aligns with the central bank’s outlook.

The president, who was represented by Minister of Housing and Urban Development Ahmed Dangiwa and, in turn, by Dr. Edna Tobi, Special Assistant for International Cooperation and Partnership, highlighted the need for bold decisions to address Nigeria’s economic crisis, Vanguard Nigeria reports.

“Our decision to reform Nigeria’s tax system and fiscal policy was deliberate and strategic,” Tinubu said. “It was a courageous and bold move aimed at addressing the suffocating economic challenges facing the nation.”

The reforms, he added, aim to create a more investment-friendly environment, particularly in the real estate sector, while also boosting job creation and sustainable growth, reiterating his administration’s commitment to increasing government revenue through fair and transparent taxation .

Delivering the keynote address, Executive Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji, represented by Chief Economic Adviser Prof. Mohammed Salisu, described Nigeria’s real estate sector as underutilised in terms of revenue generation.

Adedeji said the forthcoming Tax Administration Bill aims to streamline tax processes, enhance compliance, and reduce inefficiencies and overlapping tax obligations, calling on NIESV to support standardising valuation methods and to collaborate on implementing the reforms.

Jamaica has earned high praise from the International Monetary Fund (IMF) for its robust economic management and resilience, following the completion of its 2025 Article IV Consultation. Led by IMF Mission Chief Mauricio Villafuerte, the review team acknowledged Jamaica's significant progress over the last decade in reducing public debt, anchoring inflation, and strengthening its external position. Despite a recent economic dip due to Hurricane Beryl and Tropical Storm Rafael, the IMF believes the economy is on track to rebound. Unemployment has hit a historic low of 3.7%, and inflation remains within the Bank of Jamaica’s target range, the Guardian reports. Public debt is expected to fall to 65% of GDP, the lowest level in 25 years. However, the IMF cautioned that global economic uncertainty and climate-related shocks remain substantial risks. The institution called for continued reforms in public spending efficiency, productivity growth, and foreign exchange flexibility.

US Southern Command visit

Admiral Alvin Holsey, Commander of the United States Southern Command (SouthCom), is visiting Jamaica this week for high-level talks with national defence leaders. This would be his first official trip to the country since taking command in November 2024. According to a statement from the US Embassy in Kingston, the visit is aimed at reinforcing the longstanding security cooperation between the US and Jamaica Admiral Holsey will meet with Vice Admiral Antonette Wemyss-Gorman and other Jamaica Defence Force (JDF) officials to discuss shared security challenges such as transnational crime and illicit trafficking, Jamaica Observer reports. The embassy noted that Jamaica is considered a regional leader in professional military education, and both countries benefit from a historic and strategic partnership rooted in trust, mutual interest, and strong people-to-people connections.

Bank of Jamaica demonetises cotton banknotes

The Bank of Jamaica (BOJ) has officially demonetized its old cotton banknotes, including the $5,000, $1,000, $500, $100, and $50 denominations, as part of its currency modernization initiative. The process took effect on April 1, with the notes set to lose legal tender status on July 1, 2025. While these banknotes will no longer be accepted for transactions after July 1, the BOJ will continue to redeem them at face value indefinitely. The move is intended to enhance the security and durability of Jamaica's banknote stock, and the central bank has encouraged businesses and the public to make the necessary transitions ahead of the deadline.

Opposition blasts government over US trade policy

Opposition Spokesman for Trade and Investment, Anthony Hylton has criticised the Holness Administration for leaving Jamaica “unprepared and exposed” to shifting US trade policies. Hylton expressed concern over the country’s lack of engagement in regional and continental trade efforts, such as the African Continental Free Trade Area and African Export-Import Bank. He warned that new US tariff regimes, such as the across-the-board 10% levy on global and domestic exports, could trigger import-driven inflation and raise the cost of raw materials, intermediate goods, and consumer products in Jamaica and across CARICOM. “The across-the-board 10 percent tariff on global and domestic exports to the United States, as well as the threatened further increase of tariff on specific sectors, will shortly see prices rising on raw materials, intermediate and finished goods to Jamaica and the Caricom region. The prospects for import-driven price inflation loom large as a result of tariff-driven policies,” the Jamaica Observer quotes Hylton. Hylton further accused the administration of abandoning regional cooperation in favor of an isolated approach, arguing that Jamaica has squandered opportunities to lead external trade negotiations within CARICOM.

Security guards protest over low wages

Security guards assigned to the British High Commission have staged a protest outside their employer's headquarters, Hawkeye Electronic Security Limited, rejecting a proposed 5% wage increase as “unacceptable.” Backed by the Union of Clerical, Administrative, and Supervisory Employees (UCASE), the guards argued that ongoing negotiations, spanning over a year and 14 meetings, have failed to produce a reasonable offer, despite rising economic pressures. UCASE General Secretary John Levy highlighted that the guards, trained in diplomatic security, play a crucial role in safeguarding the High Commission and its personnel and deserve fair compensation. Levy criticised the disparity between UK minimum wage standards and what the Jamaican guards are paid. “The minimum wage, the last time I checked, was something like £7 per hour in England, and what they are offering the Jamaican worker maybe amounts to somewhere around £1 or £2. I’m not exactly sure, maybe about £2, so it’s very unreasonable, and I know the British High Commission is not an organisation that treats people unfairly. The history will show that when it comes to workers, that is where a lot of the workers’ rights emanate and we are expecting that the company will have some conversation with whoever engaged them and to come back to the table with an offer in the spirit of free collective bargaining and make an offer to the workers,” he said. He urged Hawkeye to re-engage with the British High Commission to reach a more equitable agreement in the spirit of free collective bargaining.

 A reduction in demand for the U.S. dollar and improved interbank liquidity contributed to the cedi's strength.

The cedi's appreciation has had a positive impact on Ghana's economy, helping to lower import costs and contributing to a decline in inflation rates to an eight-month low.

However, despite the appreciation, the country’s central bank may not lower interest rates. “It tightened at its last meeting to mop up any excess liquidity. So now the central bank action going forward may not readily reduce the monetary policy rate yet because there might still be some threats to inflation coming from the hikes in utility prices,” said Dr. Agyapomaa Gyeke-Dako, an economist and senior lecturer at the University of Ghana Business School.

As of early May, the cedi traded at approximately GH¢13.25 to the dollar on the interbank market. While the currency has experienced some fluctuations, the overall trend indicates a strengthening position, reflecting investor confidence and effective monetary policies .

The reforms align with the country’s State Ownership Policy Document, which aims to shift Egypt toward a private sector-led growth model.

It focuses on six main areas, monetary policy, competition, industrial development, investment climate, legal frameworks, and state ownership. Of the total, 64.6% targeted investment and industrial sector support. In 2024 alone, 321 reforms were implemented, according to Osama El-Gohary, Assistant to the Prime Minister and Head of IDSC, Daily News Egypt reports.

Key measures included a shift by the Central Bank of Egypt to a flexible inflation-targeting regime, expected to reduce inflation to 7% by 2026. This move, along with exchange rate flexibility, helped boost foreign direct investment to $46.1 billion in FY 2023/2024, with an additional $14.5 billion in portfolio inflows.

Efforts to enhance industrial output saw 134 reforms, contributing to a 14% increase in non-oil exports to $40.8 billion in 2024. Industrial zones secured 218 new project contracts worth over $5.1 billion. Credit facilities totalling EGP 67.5 billion supported nearly 2,600 clients, with the majority going to industry and agriculture.

To improve the business environment, 189 reforms were introduced, including tax incentives and expedited licensing. Egypt granted 46 “golden licenses” to strategic investors and signed a landmark $35 billion development deal with the UAE for the Ras El-Hekma project, expected to attract up to $150 billion in total investment.

Legal and regulatory changes (128 measures) improved international governance scores, while 24 reforms targeted state ownership restructuring. Private sector contributions rose to 74.8% of GDP in FY 2022/2023 and accounted for over 81% of new jobs in 2023.

The reform package has received international recognition from the World Bank , UN ESCWA, McKinsey, and StartUp Blink.

“While Ghana’s current account position has improved due to higher gold and cocoa export earnings and reduced import bills, aid remains an important non-debt-creating source of inflows,” the report stated.

Fitch noted that international aid currently accounts for nearly half of Ghana’s net transfers, making it a critical component of the country’s external accounts. The agency cautioned that a slowdown in aid, particularly from the U.S., could weaken Ghana’s ability to withstand shocks, especially in times of tightened external financing or export underperformance.

Although the country’s gross international reserves recovered in 2024 to $6.95 billion (3.0 months of import cover), sustained stability may depend on the successful completion of debt restructuring programs and renewed capital inflows, according to Fitch.

A South Korean national abducted in the Philippines last Friday was safely released on Monday, May 5, according to South Korea's foreign ministry. The individual was kidnapped while travelling by car to Nasugbu, near Manila, for a fishing trip with two Chinese and two Philippine nationals. A group of seven to ten armed individuals intercepted the vehicle. The South Korean was recovered by Philippine police on Monday morning and is reportedly in good health. The two Chinese nationals have also been released. 

Fitch affirms Philippines' 'BBB' rating with stable outlook

Fitch Ratings has affirmed the Philippines' long-term foreign-currency issuer default rating at 'BBB' with a stable outlook. The agency projects a 5.6% economic growth rate for 2025, consistent with the pace in 2023 and 2024. Growth is expected to be driven by public infrastructure investment, services exports, and remittance-backed private consumption. Easing inflation and interest rates are likely to support private demand. Fitch cautioned that domestic political uncertainty may impact investment, while global trade tensions could indirectly weaken growth through reduced external demand.

Philippines, U.S. officials discuss strengthening trade relations

Amid the wave of sweeping tariffs , Philippine trade and economic officials met with United States Trade Representative Jamieson Greer on May 2 in Washington to explore ways to enhance bilateral trade and investment relations. The Philippine delegation included Special Assistant to the President for Investment and Economic Affairs Frederick Go, Trade and Industry Secretary Cristina Roque, and Ambassador to the U.S. Jose Manuel Romualdez. 

Filipino government urged to take swift action on Nuclear Regulatory Bill 

Manila Electric Co. (Meralco) has urged the Filipino government to prioritise the passage of a proposed bill establishing a nuclear regulatory body, warning that further delays could hinder the country’s energy development goals. Ronnie Aperocho, Meralco’s Executive Vice President and Chief Operating Officer, stated that the Philippines is “running out of time” as the Marcos administration aims to integrate nuclear power into the national energy mix by 2032. He emphasised that postponing the bill’s enactment could significantly disrupt efforts to meet the administration’s energy targets.

Philippines launches first 10-year labour market strategy

The Department of Economy, Planning, and Development (DEPDev) officially launched the Trabaho Para sa Bayan (TPB) Plan 2025–2034 on May 5. This marks the Philippines’ first decade-long labour market development strategy. The TPB Plan outlines a framework for job creation, labour market transformation, and inclusive workforce development. The launch follows the enactment of Republic Act No. 12145, which restructured the National Economic and Development Authority (NEDA) into DEPDev. The institutional reform aims to enhance strategic planning and policy coherence. DEPDev Secretary Arsenio M. Balisacan stated that the agency will actively support the creation of policies and programmes promoting inclusive growth, quality employment, and workforce competitiveness.

The shift comes amid divergent monetary policies and economic circumstances in the two neighbouring countries.  Ethiopia’s decision to devalue its currency, the birr, by more than 55% against the U.S. dollar last year played a key role in altering the economic balance. The sharp devaluation, part of an exchange rate liberalisation strategy, enabled the country to unlock a $3.4 billion loan package from the IMF and an additional $16.6 billion in financial support from the World Bank .

Ethiopia also initiated negotiations to restructure at least half of its $28.9 billion in external debt, according to Bloomberg .

Meanwhile, Kenya has experienced a different trajectory. Its currency, the Kenyan shilling, appreciated by approximately 21% in 2024, making it the  world ’s best-performing currency.

While Kenya’s economy is expected to edge ahead, it still faces notable challenges. President William Ruto’s government has come under fire over controversial tax hikes and deficit-reduction measures. The fiscal tightening triggered mass protests in 2023, raising questions about the political sustainability of some of the government's economic reforms.

Nevertheless, Kenya’s diversified economy, stable financial sector, and relatively sound monetary policy have helped it maintain economic balance.

The DR Congo is resilient, and government finances remain robust despite large-scale rebel attacks in the east, Mukoko Samba said.

“We have lost the revenues because there are two provinces that we are not… controlling any more. We hope it's not going to take too much time. But so far, inflation is going down; growth is high; and public finances are doing well. So far so good. And we wish that this situation can come to an end so quickly so that we can recover.”

He put the lost revenue from the provinces of North and South Kivu at 5% of total government receipts. Rebels from the M23 group, which Kinshasa says is backed by neighbouring Rwanda, captured the areas earlier this year. With its eyes on mineral concessions in the region, Washington stepped in and last week brokered peace talks between the two nations.

Despite regular outbreaks of violence, the DRC economy has grown every year for more than two decades, recovering strongly after COVID. Much of that has been as a result of buoyant demand for commodities such as copper, cobalt and gold.

In February, the country halted cobalt exports following a price collapse, a decision that is still expected to be reviewed in June, according to the minister.

Dedollarisation

To help improve its control of the economy, the government is seeking to shift away from widespread use of the US dollar, which has been a popular shield against inflation and swings in the local currency, the Congolese franc. The central bank last year mandated that electronic payments should be made exclusively in francs but Mukoko Samba conceded that the switch is not happening as quickly as the government would like.

“ We still have 90% to 95% of bank deposits in the US dollars, in the entire banking system in the country. And it's almost the same figure for bank credits, 95%. So that's the best illustration, you could have that. We have a highly dollarized economy.”

Asked how the government planned to change the situation, Mukoko Samba, a trained economist, said completing the process would require 10 to 15 years of consistent growth with low inflation. He indicated that he was looking to the central bank to help out by lowering interest rates which would encourage borrowers to take out local currency loans.

“ Let's hope that the central banks will become, I would say, less worried about what could happen if it lowers the interest rate. They've kept it for now. One year and even more. So once that interest rate keeps going down or starts going down, then probably the interest rates on credits in Congolese francs will also be lower.”

Feeding the world

As the second biggest country in Africa and holding an astonishing 52% of the continent’s surface water, the DRC should be an agricultural powerhouse. And yet it is reliant on imports of some of its most important foodstuffs. Yet George Forrest, the businessman behind the country’s biggest food producers, believes that the country should be producing enough to feed the whole of Africa.Forrest’s vision is shared by Mukoko Samba, who puts a ten-year time frame on achieving self-sufficiency in staple crops such as maize and rice. Nevertheless, the country has a long way to travel with only around 1% of its cultivable land currently being farmed.

“ What needs to be done is first, we have to invest more in agriculture because the whole chain is not in place. We are not putting money into seeds production; we are not putting money into irrigation; systems; we are not investing enough in research, agronomic research. So public investment in the agriculture sector is the first step. ”

Videography: Glody Nzita Matondo

La parte más notable del crecimiento, según los analistas, vendrá de Argentina. Tras experimentar dos años de recesión económica, el país prevé un repunte significativo del 5% en 2025 y del 4,7% en 2026, motivado por avances en sectores clave como la agricultura y la minería, además de un marco macroeconómico más estable.

En Perú, se anticipa un crecimiento también del 2,5% tanto en 2025 como en 2026, impulsado principalmente por inversiones mineras y de infraestructura. Sin embargo, el consumo será moderado en comparación a años previos. Las proyecciones indican que el consumo público aumentará a un ritmo más lento, impactando la tendencia de crecimiento.

Brasil, la mayor economía de la región, enfrenta una desaceleración, con crecimientos previstos de 2,2% para 2025 y 2026, bajando del 3,2% en 2024. A pesar de un consumo privado fuerte, se espera que las políticas monetarias y fiscales restrictivas limiten el dinamismo económico del país, lo que representa un desafío considerable.

En México, el crecimiento será más modesto, proyectándose en apenas un 1,5% en el bienio 2025-2026. La combinación de consolidación fiscal y una política monetaria estricta hace que la situación económica sea complicada, además de que la inflación está propensa a permanecer alta.

Por su parte, Colombia proyecta un crecimiento del 3% durante 2025 y 2026, respaldado por una recuperación del consumo privado, aunque la situación fiscal podría dificultar este crecimiento. Chile debería mantenerse en un crecimiento más controlado, con un 2,2% favorecido por la exportación de materias primas. En el Caribe, la economía podría crecer un sorprendente 4,9% en 2025, gracias al auge petrolero en Guyana. Si se excluye a Guyana, el crecimiento en la región se situaría alrededor del 3,8%. Mientras la República Dominicana crecería por encima del 4%, Haití se encuentra en una situación crítica sin mucha estabilidad. Centroamérica mira hacia un crecimiento del 3,5% en los próximos dos años, impulsada por el consumo interno, aunque cada país tiene su propia dinámica.

Las condiciones inflacionarias están variando, pero, en general, tienden a alinearse con las expectativas de los bancos centrales. Sin embargo, hay señales de alerta. Las condiciones financieras globales pueden endurecerse, incrementando los costos del servicio de deuda, lo que podría obligar a una consolidación fiscal más estricta. También existe la amenaza del cambio climático, que podría desestabilizar sectores vitales en el Cono Sur en caso de fenómenos extreme como sequías. Finalmente, a largo plazo, la región enfrenta un crecimiento potencial a la baja, marcado por problemas como la baja productividad y una fuerza laboral envejecida. A pesar de las señales de recuperación, el futuro de América Latina y el Caribe dependerá de factores internos y externos que, en conjunto, pueden determinar el camino hacia un crecimiento sostenible y sólido.

"For 500 years, basically the West,  meaning Europe and the United States, were in charge. They were in charge through imperialism. They were in charge of world finance. They were in charge of the world economy," Sachs told Global South World.

According to Sachs, the legacy of colonial domination, from the Atlantic slave trade to late-19th-century African colonisation, left enduring economic scars. But now, he argues, that era is ending,  not by design, but by global shifts in power and technology .

“Finally, this Western system is ending,” he remarked, adding, “And I say finally because it was not a fair system. It was not a just system. It was not an ethical system. It was a system of power.”

The current shocks, marked by the United States’ reintroduction of tariffs , intensifying geopolitical rivalries, and sanctions that have shaken the post-World War II economic order, have left many developing nations in economic limbo. But Sachs insists this is also a time of unprecedented opportunity.

“Power is now more diffused, more shared, across more parts of the world than has been true for centuries,” he noted.

He cited the growing influence of China and India as examples of the shifting balance and called for the African Union to rise as a unified global force, pushing for fairer systems of trade, finance, and governance.

“Technology is spreading, economic development is spreading. The world is online everywhere, even in remote villages — though not equally yet,” he noted.

In this new world order, Sachs says the path forward for the Global South lies in unity, investment in technology and education, and a firm demand for inclusion in shaping international policy .