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AFRIcA DoWn UnDeR

Emerging economies bounce back

On the big screen: Australia’s High
Commissioner to South Africa, Gita
Kamath joined Africa Down Under
remotely from Pretoria

utside of South Africa, the impacts of at real GDP growth for this year, around sector again, which accounts normally for
Othe COVID-19 pandemic on the rest of 2%. around 11% of their GDP,” Cutts said.
the continent have barely rated a mention in “Despite the problems I think Egypt is Australian Ambassador to Zimbabwe
the Australian mainstream press. However, looking at the opportunities created by Bronte Moules said two of the country’s
that does not mean Australia has no role to COVID and looking to take advantage.” strongest assets – its natural wealth and its
play in the recoveries of some of Africa’s Ethiopia was another country enjoying an human capital – remained steadfast in the
emerging economies. improved economic outlook following the face the pandemic.
Ethiopia and Egypt were two countries election of Abiy Ahmed as Prime Minister Zimbabwe is also maintaining its ambi-
going from strength to strength prior to in early 2018. tion to be a net exporter of power by 2023.
the outbreak of the coronavirus in Janu- Australian Ambassador to Ethiopia Pe- “Despite a myriad of challenges, we
ary. Despite the pandemic and the finan- ter Doyle said the country remains in both have seen some encouraging signs at least
cial implications of lockdowns across the a political and economic transition, while in terms of the issues that potentially get
world, Egypt remains on track to be the only maintaining a steady level of growth. raised by potential investors,” she said.
country in the Middle East and North Africa “When Prime Minister Abiy came to pow- “The foreign auction system has brought
(MENA) region which will record positive er in April 2018, he really instituted for the some stability in terms of the currency and
economic growth in FY2021, according to first time reforms that are putting Ethiopia prices so there’s more predictability in terms
the IMF. on a path to being a true democracy and of access to currency and more predictabil-
This has been attributed to the economic he wants the country to become an open ity in prices. It’s looking a little bit better in
reform programme first rolled out in Egypt economy,” Doyle said. the last few months than it has before.”
four years ago and continuing today. “The Government and the Prime Minister South Africa entered one of the world’s
“Going into the pandemic…economic have a really high level of ambition of what strictest lockdown periods in March, but the
growth was around 5.5% and primary in- they want to achieve and so there’s plenty Ramaphosa Government also committed
flation for the first time in a long time had of activity at the moment. Obviously not to a significant stimulus package of R500
dropped down to single digits….and that’s everything is going to be smooth when you billion.
after many years of low growth following the want to make major rapid change, there’s While some economists have questioned
2011 revolution,” Australian Ambassador to going to be some hiccups along the way, how much of that stimulus is new money,
Egypt Glenn Miles said. but it’s really exciting transition journey that according to Australian High Commission-
“What it meant was that Egypt entered Ethiopia is on at the moment.” er to South Africa Gita Kamath, it appears
the pandemic in a good macroeconomic Morocco on the other hand is set to re- now to be a matter of when certain projects
position. Obviously like everyone, it’s been cord a 2% drop in its GDP given its close will be rolled out.
badly hit. Tourism has fallen considerably… links to Spain and France which have both “Some of those announcements are not
remittances have also fallen, revenue from been badly impacted by COVID-19. new and the target is to achieve 3% annual
the Suez Canal has dropped a bit and hy- However, Australian Ambassador-des- growth over the next decade,” she said.
drocarbons have also taken a bit of a hit. ignate to Morocco Michael Cutts expects “In South Africa, getting to this point in-
“The Government has responded well. the country to bounce back in 2021, with volves what they call social compacting, so
We never went into the lockdown that other the European Bank for Reconstruction and there’s a lot of discussion with organised
countries in the region have gone through Development (EBRD) forecasting 4% eco- business, the union movement and social
and the size of the informal economy nomic growth next year. partners who have all committed to sup-
helped keep it kicking over. Egypt signed “They’ve thrown money at investment porting the Government. But the key ques-
an $8 billion deal with IMF which has given projects that will seek to boost employ- tion on everyone’s mind will be about imple-
it a greater financial buffer and it’s the only ment, in the first instance, and they’ve really mentation and execution.”
country in the MENA region that is looking started to throw some money at the tourism
– Michael Washbourne

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