Economist Razi Kahn, head of African research for Standard Chartered Bank, explains that hopes are high for Africa’s economy this year. The key expectation is 6% to 7% growth in a number of different markets. Kahn studies everything that makes up Africa’s economy, and predicts that the continent will “emerge from the grips of global financial crisis much better than anyone anticipated.” Kahn explains to CNN that a lot of the economy has to do with leverage. China is a big factor, the strength of China and support given to commodity prices. Asian emerging markets have made good in the losses associated with the crisis and are even growing. Europe remains the key-trading partner with Africa.
After the financial crisis in 2009, 2010 looked better but not quite back to pre-crisis trend. With the scenario that the economy will grow 6% to 7% , comes risks including raised food prices and set backs involving predictions of severe weather. There are also upcoming political changes that will be effected and effect Africa’s Economical situation.
Kahn explains there are still very good prospects in Africa, and one of the successes is that they have not seen negative growth across the region because of the financial crisis. Most African communities managed to keep some positive growth and that growth is continuing.
22- year-old Enock Nsubuga was arrested in Kampala, Uganda for the murder of gay activist David Kato. Kale Kayihura, head of Uganda national police, explains that Nsubuga was an ex-convict that had been working in Kato’s garden. After being detained, Nsubuga admitted to beating Kato to death with a hammer.
In an African tabloid called “The Rolling Stone” – Not affiliated with the iconic magazine in the U.S. – Kato was listed in the “top 100 homosexuals” with his photo, address, and a banner saying “hang them.” Nsubuga explains that although Kato was unfavored in Kampala, the murder was not a hate crime. According to Nsubuga, Kato had promised to pay him for sex, but never followed through. An angered Nsubuga then beat him fatally with a hammer. Kato feared for his life prior to his death and even alerted police of his concerns.
Mourners had a pastor removed from the funeral after he rebuked homosexuality when speaking during Kato’s funeral service in Mukono. Homosexuality is illegal in most of Africa. According to activists, homosexuals can face 14 years to life in prison. Even with Nsubuga’s confession and a record of crime prior to the killing, police still claim that the murder remains under investigation.
In Cape Town, Africa, the government has recently informed the population that the year of 2011 will be the year of job creation. President Jacob Zuma addressed the nation confirming that “through meaningful economic transformation and inclusive growthation” South Africa will commence in a new beginning of professions. A growth path has been discussed according to the economic policies and goals. Their number one incentive for this new project is the hope that more South Africans will have decent employment opportunities in a more modern and sophisticated economy. The government is aware what a difficult task this will be, but their hope is that the population will think of ways to contribute to creating opportunities for not only themselves but others around them. The government has decided upon several tactics in order to bring this plan into action. Some of their contributions include:
- Establishing a jobs fund of 9 billion rand over the next three years to finance new job-creation initiatives.
- Set aside R20 billion in tax allowances or tax breaks to promote investments, expansions and upgrades in the manufacturing sector.
- Continue to provide financial and non-financial support to small, medium, and micro enterprises (SMMEs), small scale agriculture as well as cooperatives.
- Finalize and adopt the beneficiation strategy as the official policy of government, so that we can start reaping the full benefits of our commodities.
Along side of these great efforts, other organizations have set aside investments for other economic activities like these with high job potential. The African Exploration, Mining and Finance Corporation has also been asked by the government to take over the job of mining signifcant minerals that can be used for necessary purposes. All local, provincial and national governments are on the grind to create new jobs and have made this new project their number one priority.