Welcome to the maiden edition of the FDC Afriscope.
At least 5 countries with a combined population of 290 million (32% of Sub-Saharan Africa) will hold crucial elections this year. The style of political campaigning has changed from the traditional to the more technology driven and social media intense ways of reaching the electorate. The correlation between controversial elections and economic performance shows that stolen elections can lead to violence and negative economic results.
In Zimbabwe, violent protests erupted across the country over a worsening economic crisis, stemming from the shortage of foreign exchange. A failure to arrest the situation could see the country decline towards the most extreme example of stolen elections i.e. Venezuela.
One of the major limitations of GDP per capita as a measure of economic advancement is that fast growing economies are also witnessing a widening gap between the rich and the poor. In recent times there has been a confluence of economic and social indicators. In Kenya, Kenya Airways is set to launch new routes to Rome and Geneva, starting from June 2019. The airline is seeking to expand its customer base and revenue, in the wake of heightened competition from the likes of Ethiopian Airlines and Royal Air Maroc. Kenya stands to benefit from direct flights to these two prestigious cities.
The Confederation of African Football has confirmed that Egypt will replace Cameroon as the host of the 2019 African Cup of Nations (AFCON). The AFCON is traditionally seen as an opportunity to boost investment in infrastructure and promote tourism in the host country. Although Egypt has the stadium infrastructure to host the event, there will be concerns about the cost of hosting the tournament. This is because of the challenges of fiscal consolidation and security concerns given the recent terrorist attack on the pyramids of Giza.
The FDC Afriscope provides an in-depth assessment of these issues and their implications on businesses and investment decisions.
Do enjoy your read!