Kenya's Economic Shift: Tanzania's Gain And East Africa's New Trade...
Africa
Business
Kenya is the gateway and hub to the East and Central Africa region. Known as the athletics nation of Africa, Kenya has shown great potential over the years in different industries. It is also referred to as the Silicon Valley of Africa due to its technological developments in e-commerce and cashless transactions in the era of M-pesa developed by Safaricom. In agriculture, it has been known to produce the best tea for global consumption and ranked third after China and India in its global production, with production estimated at 537 million kilograms of tea per year. Tourism has also made Kenya a top tourist destination in Africa due to its vast wildlife and rich cultural diversification. The renewable sector has also seen Kenya being ranked among the top renewable energy nations in the world, due to its expansion of geothermal activities and tapping of wind and solar energy. Infrastructure and real estate construction have also made the country a hub for big infrastructural projects as it races against time to meet its 2030 vision dream of making the country a middle-income nation. While Kenya’s aspirations continue growing, it's also experiencing major drawbacks in different sectors by losing major economic opportunities to its neighbouring countries, with Tanzania being the country at the centre stage. Kenya has been an entry point to East Africa in the logistics space by relying on the port of Mombasa. The Port of Mombasa has experienced a decline in cargo to other East African countries. This has been attributed to competition from Tanzania’s port of Dar es Salaam due to its cheaper costs and faster clearing of goods at the port, which has attracted both importers and exporters to rely on the port. Kenya greatly relies on tourism as one of the major sectors that contributes to its GDP. However, its tourism stakes are declining while Tanzania gains from it. The new taxation policies that have also targeted the tourism industry in the country have led to an increase in entry prices to the national parks and game reserves. With Tanzania offering the same ecosystem, tourists who had planned to visit Kenya have cancelled their visit and bookings and have opted for the cheaper tourist destinations in Tanzania. This has resulted in regional economic shifts with countries such as Uganda, Burundi, Rwanda, and the Democratic Republic of Congo refocusing their business from Kenya to Tanzania. The efficiency of infrastructural capabilities in logistics in Tanzania has made Tanzania a new economic hub in the East Africa region attracting a huge pool of investors. A new route between Tanzania and Burundi is in development through a standard gauge railway that will connect the two countries in a 7.6 billion project. Another ambitious project by Tanzania, expected to be completed by 2045, will rival Kenya as an economic hub for the East African Region. The Bagamoyo Port Project being carried out by China and Oman at an estimated cost of $11 billion, will make the port the largest port in Africa, capable of handling more than 20 million containers annually. The construction of the crude oil pipeline between Uganda and Tanzania adds to the economic woes that Kenya is currently facing. The current economic policies in Kenya, have pushed a chunk of investors from the country. The loss of business by Kenya to Tanzania and other regional sectors will affect different sectors in the country. For Kenya to regain trust as a leader and a giant economic hub in various sectors in the East Africa Region, it will have to re-evaluate its strategic investments, and policy reforms, focusing on achieving efficiency and competitive advantage over other African countries.
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Trump's Return To The White House: Economic Shockwaves Across The...
NorthAmerica
Business
Donald Trump was elected as the 47th president of the United States of America in the 2024 US elections and will officially assume office in January 2025. Like Grover Cleveland in 1885-1889, 1893-1897 who served as the US President in non-consecutive terms, he is the second president to be elected back to office after losing in the 2022 Elections to Joe Biden. Donald Trump has cemented a historical comeback into the white house by winning the Electoral College and the popular vote. Donald Trump’s Republican party takes over the Senate and the House of Representatives. This will greatly influence policies from Trump’s led government, which commences in January. His comeback to the White House puts the US in a paradox in domestic policies, global policies, and their influence on the international dynamics in politics and the economy. Donald Trump's policies are geared towards protecting and enhancing the domestic economy of the citizens of the USA. In his previous time in office, most policies focused on protecting the American economy. This led to Trade Wars between the USA and other countries, especially with China which culminated into an increase in tensions between the two countries. This is also expected to take course as he assumes office at the white house. More tariffs are expected on goods and services from other countries, which could greatly impact the global economy due to volatility in financial markets and supply chains. However, the financial markets in cryptocurrencies are set to gain attributed to the pro-stance by Donald Trump during his election campaigns, oiled by the fact that cryptocurrencies were the biggest financiers of Trump in his bid for the presidency. His policies are to stimulate domestic economic growth by including measures of tax cuts in the US. While this is a benefit to the economy, it could also lead to income inequalities, as tax cuts would be much in favor of the wealthy and big corporations. It could also result in federal deficits. His stance on immigration laws could impact the labor market in the US. Immigrants have been poised to be the cause of increased unemployment rates, and an increase in the number of homeless people in the US. The immigration laws in the new administration under Donald Trump will overturn most of the immigration policies made by Biden’s administration. Deportations are expected for undocumented immigrants in the US. However, his immigrant policies will benefit qualified professionals with papers, as the new administration will seek to reignite the labor market with professionals. The anxiety about mass deportation has risen across the Mexican border as more than 3400 individuals are in migrant shelters seeking legal entry into the US by relying on CBP One App. Concerns have also risen within the European powers, as the new administration could undermine the existing efforts in sanctioning Russia due to the war in Ukraine. Trump had stated the need to end the war in Ukraine and the war in Israel. This move could re-establish the business and political relationships between Russia and the US. Donald Trump threatened that the countries that seek to do away with the dollar, will stop doing business with the US. This could derail the advancements of BRICS in the global economy in the use of BRICS's new currency to counter the US Dollar. Investment in climate change is also a concern. In 2017, Trump pulled the US away from the Paris Climate Agreement, making the US the first country to do so. He raised concerns that the policies did not protect workers and American businesses. This is expected to continue as he seeks to protect manufacturing businesses that rely on fossil fuels. As a result, action on climate change is likely to decline on a global scale. Trump’s policies in Africa focus on cuts in aid and donations. This could hamper projects in Africa that greatly rely on aid from the US. African leaders must thus be prepared to tackle issues internally by mobilizing their resources. As Trump’s administration takes office, governments must be prepared to handle their issues, as the new administration has promised to focus on internal issues in the US rather than external ones. His protectionist trade policies, tax cuts, and deregulation efforts are likely to reshape international trade and investment flows immigration. The environmental policies could have significant impacts on labor markets and climate change efforts.
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Crypto's Political Power Play: The Role Of Digital Currencies In...
NorthAmerica
Politics
Cryptocurrencies are new financial assets shaping and shaking up the global financial systems. Cryptocurrencies began with the creation of Bitcoin (BTC) in 2009. It became the first decentralized digital coin/currency that relies on cryptography to conceal and ensure the identity of the users, making it the most secure way of transferring digital currencies. This is possible as it relies on blockchain, a distributed ledger system. The development of Bitcoin as a cryptocurrency led to the introduction of other cryptocurrencies such as Ethereum (ETH) 2015, Ripple (XRP) 2012, Litecoin (LTC) 2011, Cardano (ADA) 2015, Polkadot (DOT) 2016 and Dogecoin (DOGE) 2013. The existence of cryptocurrencies has forced central banks of different countries to explore the development of their cryptocurrencies based on their country's currencies. The Central Bank Digital Currencies (CBDC) are already being used in Jamaica, the Bahamas, and Nigeria. Their influence has not only grown in the financial markets but is changing the dynamics in the political space in the United States of America. This has been the case in the US Presidential elections in 2024. Cryptocurrencies have played a big role in the campaign funding of various candidates. Both democrats and republican candidates have received huge contributions from different crypto players. The Political Action Committee (PAC) and Fairshake have spent $33.7 and $54.6 million on democrats and republican candidates, Kamala Harris and Donald Trump respectively. Crypto entities such as Ripple and Coinbase have been the biggest campaign financiers in the US presidential elections. Donald Trump has received huge contributions from crypto players due to his political stance on cryptocurrencies. This has shaped the debate around the adoption and use of cryptocurrencies as they become a major form of currency transactions. It has created a discussion on policy formulation on taxation measures and regulation of cryptocurrencies. Donald Trump has stressed making the US capital of crypto in the global financial system by; creating crypto reserves as a stockpile of bitcoin, establishing a crypto advisory council, and preventing the Federal Reserve from creating digital currencies that are under research and development from other countries’ central banks. Donald Trump's pro-crypto stance is also attributed to the money market project being developed by his sons. The project is a form of decentralized finance (DEFI) built under blockchain technology that allows individuals to borrow and lend money while earning interest in crypto asset form. While Donald Trump has been pro-crypto in his manifesto campaign, Kamala Harris has been cautious on the crypto discussion, and she has not revealed much on crypto policies. This could be attributed to the fact that there have been uncertainties in the crypto markets due to the collapse of the third-largest crypto exchange FTX in the year 2022. The crypto players have also faced several court cases, as the Democrat-led government by Biden has been seeking more control in the crypto financial markets. Kamala Harris has however promised the need to support more innovation in blockchain technology. The difference in policy and stance on cryptocurrencies by democrats and republicans will contribute greatly to how Crypto Investors vote in the US Presidential elections on 5th November 2024, with Donald Trump having an edge in the cryptocurrency debate. Regardless of who takes office as the US president, the cryptocurrency discussion will go beyond the US presidential elections. The cryptocurrency markets will either boom or decline depending on who is elected as the next US president.
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Blockchain: A Beacon Of Hope For Africa's Heathcare Sector
Africa
Technology
Technology has continued to greatly influence different sectors in the African region. The health sector in Africa has adopted the use of technology by integrating information communication systems in understanding health systems that encompasses people and laid out structures. Technology continues to evolve with development of blockchain leading to the growth of cryptocurrencies in the financial markets. Blockchain technology is a form of technology whose nature is decentralized, transparent, efficient and secure. This means individuals can access the services needed at any place of their convenience seamlessly without any barriers such as control by a particular group, organization or an individual. Blockchain technology is emerging as a powerful tool that could change the face of the health sector in the African region. It could spearhead better health services by addressing the most pressing health concerns in the continent. Most health care institutions in Africa rely on paper-based health records which are fragmented. The use of blockchain in the management of health records would go a long way in preventing and eradicating cases of loss of patients’ health records. There have been cases of patients file being exchanged with other patients’ files resulting into medical errors. Blockchain not only can it store those files tamper free, but also ensure transparency in accessibility of patients’ files among different health practitioners and institutions that would culminate into quality care of patients. The supply chain in the health sector plays a crucial role in ensuring movement of drugs from manufacturers. Patients in Africa have been mediated with drugs which have been banned by international bodies such as World Health Organization (WHO) and other countries. Through blockchain technology, hospitals and pharmacies can track the movement of recommended drugs, from the time they are manufactured to the intended destinations. This could lower cases of counterfeit medications and promoting timely delivery of drugs. The long procedures in patient admissions to hospitals is a menace in Africa, which has resulted into deaths as patients seek to be timely admitted in hospitals. This is mostly attributed to the poor health payment systems. Blockchain could be adopted in such scenarios to ensure timely and transparent transfer of payments, that is accessible to the needed hospital departments resulting into smooth admission of patients and reduction in hospital costs. Countries such as Kenya, Nigeria and South Africa are already exploring and using blockchain technology in the health sector. Kenya is relying on blockchain technology in the management of medical supplies in the supply chain thus lowering cases of medical supply shortages and counterfeit drugs. Nigeria uses the blockchain technology to track the supply of drugs to the remote areas resulting into timely and safe delivery of the drugs. While the use of blockchain technology in Africa could solve most of Africa’s problems, the continent has huge deficits in areas that could make the use of such a technology a success. Africa is poorly equipped in technological infrastructure, blockchain regulatory policies and cybersecurity. Blockchain education training needs to be carried out in health institutions by creating awareness among health practitioners and policymakers. Individuals such as patients need to be aware on how they can use such technology, as they would be able to retrieve their medical records at any time, at any place. Africa could be one short away from revolutionizing the health sector by enjoying the benefits of using blockchain technology.
Read more2 MONTHS AGO
Brics Summit 2024: The Bloc With New Global Currency
Asia
Business
On 22/10/2024, the 16th BRICS Summit was held in the Russian City of Kazan for a 3-day event to discuss emerging geopolitical issues and investments among its members. Having been established in the year 2009 under the umbrella of Brazil, Russia, India, and China, the bloc continues growing and attracting more attention from all over the world. Since its establishment, other countries have joined the BRICS, starting with South Africa (2010), Iran, Egypt, the United Arab Emirates, and Ethiopia. Many other countries seek to join in this new development of a group of emerging economies. Argentina, Cuba, the Democratic Republic of Congo (DRC), Malaysia, Turkey, Venezuela, and Gabon have expressed their interest in BRICS. This year's 16th BRICs summit is seeing the attendance of influential global leaders Russia’s President Vladimir Putin, China’s President Xi Jinping, and United Nations Chief, Antonio Guterres. Antonio Guterres's attendance evidences the influence of the BRICs Summit on global geopolitics and economy as the bloc represents half of the world’s population. The last summit t was held in South Africa in 2023. The major talking points of the BRICS Summit 2024 are centred on economic cooperation among the member states. The need to open the business corridors and collaborations among the members has been highly emphasized. Climate is also a major topic of discussion as the world grapples with the adverse climate changes. The global uncertainties due to the existing conflicts have also been highlighted especially in the Middle East and the need to ensure no spill-over of the conflict to the entire Middle East Region. The Western sanctions on some of the member states such as Russia and China have also been raised for discussion during the summit. The summit noted that there is a need to remove such unlawful sanctions and bans that hamper peace and the growth of international trade. The BRICS summit has pointed out the necessity of changing the global payment system. Members have agreed to work towards revolutionizing the global payment system. The BRICS member countries are to introduce and adopt a new payment system known as the Brics Pay, a blockchain-based payment platform. A new currency is also being set up to compete with the US Dollar, which will be used as a transactional currency among the BRICS member states. The BRICs have set up a new development bank that will serve member countries that require funding for their infrastructural projects. There has been an emphasis on financial innovation among the member states through the BRICS Interbank Cooperation Mechanism (ICM). The BRICS members account for about 40% of the world’s population Gross Domestic Product (GDP) and Purchasing Power Parity (PPP). This means they are the new block with a huge influence on global geopolitics and economics. They now pose a challenge to the advanced and developed economies in the West. It challenges the G7 economies consisting of Germany, Italy, Japan, France, Canada, the United Kingdom, and the United States of America. The European Union is also a non-enumerated member of G7. The G7 controls 30% of the global economy, falling short by more than 10% of the BRICS global economy control. The BRICS summit reflects the shift in global power dominance. The International Monetary Fund (IMF) forecasts the growth of BRICS, with China taking center stage. It also points to a decline in the G7's power and dominance in geopolitics and the global economy.
Read more2 MONTHS AGO
Jp Morgan Chase Expands Into Kenya: A New Era For...
Africa
Business
In a significant move that underscores the growing importance of East Africa as a financial hub, JP Morgan Chase has officially opened a representative office in Kenya. This development comes after nearly 12 years of planning and marks a major milestone for both the bank and the region. This move is expected to enable the bank to reach a wider market in the African region.JP Morgan Chase is among the world's largest banks, first announced its intention to enter the Kenyan market in the year 2012. The Central Bank of Kenya (CBK) has now given the go-ahead for the bank to start operations, paving the way for JP Morgan to expand its footprint across the African region. The decision to establish a presence in Kenya aligns with JP Morgan's long-term strategy to capitalize on opportunities in emerging markets and promote cross-border trade. To lead the bank in Kenya, JP Morgan has appointed Sailepu Montet, a former Deputy Director of Financial Markets and Head of Reserves Management at the Central Bank of Kenya. Montet brings a wealth of experience and knowledge from his previous roles at Barclays Plc and Absa Group Ltd4. The appointment can be pointed out as a strategic move to leverage his extensive knowledge of the local financial landscape and gear the bank's ambitions in the region. The entry of JP Morgan into Kenya is expected to have a significant impact on the country's financial sectors. The Nairobi office in Kenya, will play a pivotal role in catalyzing trade, investment, and economic growth in Kenya and the broader East African region. By providing a wide range of financial services, JP Morgan aims to support local businesses and contribute to the overall development of the economy. Kenya is seen as the hub of growth in the East Africa Region, and the entry of JP Morgan evidences this. With the establishment of its representative office, JP Morgan is well-positioned to tap into the growing economic potential of the East Africa Region. The bank's CEO, Jamie Dimon, visits Kenya in a four-nation tour to advance the lender's footprint on the continent2. This visit will further solidify JP Morgan's commitment to the East Africa region and open up new opportunities for collaboration and growth in the African Continent. JP Morgan's entry into Kenya also points towards a new era for the country's financial sector and highlights the region's growing importance as a hub for international banking. The financial sector more so banking and Saccos has experienced tremendous growth in the country, which pulled the entry of JP Morgan into the country. With experienced leadership and a clear vision for the future, JP Morgan is poised to make a significant impact on the local economy and contribute to the development of East Africa. As the bank continues to expand its presence across the continent, the financial landscape in Kenya and beyond is set to transform to a very large extent. The competition brought about by JP Morgan in the country will also lead to better services in the financial sector as the local banks seek to offer more valuable products to their customers.
Read more3 MONTHS AGO