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The Trump 2.0 era – Many are called, few are chosen
The world is now gearing up for the Trump 2.0 era, which begins on January 20, 2025. With approximately 60 days until the inauguration, the markets are adjusting to the anticipated “America First” agenda. Since the election results were announced on November 6, the US dollar has appreciated by 3.5% against a basket of major currencies, and the cryptocurrency market has experienced an astronomical increase in its value (Bitcoin reached an all-time high of over $100,000).
However, this once-in-a-four-year event holds more than an economic meaning for the world. On the political front, the US is poised for a wave of conservative reforms aligned with the Republican ethos. Moreover, the ongoing war in the Middle East, previously viewed as a prolonged conflict with no clear resolution, now has a discernible endpoint.
The implication of Trump’s victory for sub-Saharan Africa in particular is a mixed bag. The African Growth and Opportunity Act (AGOA) will open up some new benefits, whilst the transactional approach of Donald Trump will force African countries to become more resilient and home country dependent.
Closing Nigeria’s agricultural productivity gap: The case for mechanized farming
Nigeria is a paradox of abundance and scarcity. Despite its vast natural resources, including fertile agricultural land, the country faces significant food insecurity. Agricultural productivity remains well below its potential, with yields for staple crops like rice, oil palm, and potatoes far from attainable. This productivity gap is becoming increasingly problematic, especially as food inflation spirals, hitting 39.16% in October 2024, up from 31.52% the previous year. Output constraints and rising input costs largely drove the surge. As a result, 22.6% of Nigeria’s population—roughly 53 million people—are living with severe food insecurity. To address this, a shift toward commercial and mechanized farming is essential. Nigeria can close its yield gap by drawing inspiration from countries like Iran, which have successfully boosted agricultural output through such strategies.
In this latest edition of the Prism, the FDC Think Tank takes a deep dive into recent economic developments and their impact on your business and corporate strategy.
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