• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      CBN says cryptocurrency ban in interest of Nigerians

      1hr

      Companies-in-Action

      Zenith Bank in strong operational performance as profit rises 10.4% to N230.56bn in FY20

      1hr

      Companies

      United Capital posts strong numbers as earnings rise 50% to N12.87bn in 2020

      February 23, 2021

      Finance

      CIBN revives mentorship initiative for bank workers

      February 20, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Insurance Business

      Enterprise risk management surges amid pandemic, RIMS reports

      17 min

      WORLD BUSINESS & ECONOMY

      Hyundai to recall 82,000 electric cars over battery malfunction

      1hr

      Frontpage

      Global health insurance premiums fall amid pandemic, says new report

      24 hrs

      Frontpage

      Insurance M&A record highest growth in Africa, Middle East in 2020

      February 23, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Frontpage

      Nigeria still losing 200,000bpd crude daily as NNPC enlists army’s intervention

      48 min

      Frontpage

      Nigeria to sell 170MW electricity capacity to Togo from Calabar plant

      24 hrs

      Oil and Gas

      NCDMB extends ‘transitional’ equity to Waltersmith’s expanded refinery

      February 19, 2021

      Frontpage

      Global solar PV demand to reach 150 GW in 2021

      February 18, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      Coronation MB analysts project sharp rates rise after Nigeria recession exit

      10 min

      Analyst Insight

      How NITDA can further foster data protection compliance in Nigeria

      February 22, 2021

      Analyst Insight

      Do we need more start-ups in insurance?

      February 16, 2021

      Analyst Insight

      Naira, PMI’s and Inflation in focus

      February 16, 2021

Africa

‘As African leaders meet on growth, leading economies are a drag’

September 4, 2019363 views0 comments

As leaders of African nations meet Wednesday and Thursday to discuss growth, the two nations that account for almost half of sub-Saharan Africa’s gross domestic product are proving to be a damper on the region’s economic expansion.

Nigeria and South Africa, which vie with each other to be the continent’s biggest economy, both released second-quarter growth data on Tuesday. The figures show South Africa dodged a recession and Nigeria’s growth quickened, however growth figures indicate expansion at a limp pace.

Big Players Lagging- Africa’s two biggest economies are among the slowest growing

The publication of the data comes as political and business leaders from at least 28 African countries prepare to meet in Cape Town on Wednesday at the World Economic Forum on Africa. The discussions will focus on how Africa, which has some of the world’s fastest-growing economies in Ghana and Ethiopia, can expand its potential.

It is obviously going to be a major drag on the continent’s growth if the two largest economies are not performing,” said Ronak Gopaldas, a director at the Cape Town-based consultancy Signal Risk.

Read Also:

  • Interswitch pushes novel Quickteller Business for SME growth across Africa
  • Nigeria posts world’s best GDP growth ahead US, China, Japan
  • Insurance M&A record highest growth in Africa, Middle East in 2020
  • Nigeria, Egypt, Kenya, South Africa lead Africa’s home-tech market, with…

The data is expected to show the South African economy grew an annualized 2.5 percent from the first quarter, and Nigeria’s expanded by the same margin year-on-year. While the slowing global expansion is contributing to South Africa and Nigeria’s tepid growth, the two nations’ economic woes are largely of their own doing.

The African National Congress-led government in South Africa has failed to decisively deal with the finances of debt-laden power utility Eskom Holdings SOC Ltd., which is straining the nation’s budget and caused a contraction in GDP in the first quarter. Nigeria’s failure to diversify its economy, which relies on oil for 90 percent of its foreign exchange, leaves it vulnerable to international price movements.

“Investor confidence and sentiment toward both of these economies is weak at the moment and that’s largely self-inflicted,” said Gopaldas. “Both countries, through their policy-making own goals, have made bad situations worse than they needed to be.”

Share on Facebook Tweet Email
TagsNigeria South Africa world leaders
PreviousAfDB group appoints Chinelo Anohu to head Africa Investment Forum
NextOil prices nudge up, but economic worries loom

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Coronation MB analysts project sharp rates rise after Nigeria recession exit
  • Enterprise risk management surges amid pandemic, RIMS reports
  • PenCom’s AuM data signals investment shift favouring corporate debt, equities
  • Gradely, ed-tech startup, rolls-out virtual learning management system for schools
  • Nigeria’s CcHub declares success in 3 premier investments made through new syndicate

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

LAPO Microfinance Bank’s founder, Godwin Ehigiamusoe exit company, gets replacement

Banking December 2, 2019

1
2

“Data is the new oil” – stakeholders promise to leverage market data usage to grow businesses, investment

Frontpage September 11, 2019

3

Osinbajo charges African leaders, business giants on youth empowerment at TEF entrepreneurship forum

Frontpage July 28, 2019

4

NPDC gives life to NNPC domestic gas pledge; to raise supply by 600mmscf/d  

Energy August 21, 2020

5

Nigerian stocks extend losing streak as NSEASI dips 0.26%

Frontpage June 14, 2018

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.