Weekly brief 30/06

Zimbabwe Ends Multi-currency System

  • Zimbabwe has ended its multi-currency system after a decade of accepting the U.S. dollar, South African rand, and other foreign currencies
  • The Multi-currency system was introduced after the Zimbabwean economy suffered hyperinflation
  • The Zimbabwe government this week made its interim currency (the RTGS Dollar) the country’s sole legal tender taking another step towards relaunching the Zimbabwean dollar.
  • There is a concern that the sudden decision to scrap the multicurrency system and limited foreign reserves could spike inflation.

Read more here: https://www.bloomberg.com/news/articles/2019-06-26/back-to-2008-in-zimbabwe-as-currency-that-wrecked-lives-returns

Angola’s Oil Shortages

  • This week the Financial Times reports that Angola, Africa’s second largest oil producer (after Nigeria), is running out of oil to sell due to the drying up of new investment.
  • Oil production has been falling, from a peak of 1.9 million barrels per day in 2010 to just above 1.4 million barrels per day now.
  • Angola’s economy relies heavily on oil production with 95% of its export revenues and 70% of tax come from petroleum – its economy has failed to grow for 4 years.
  • A fall in sales to China – who usually purchases about two-thirds of the country’s oil output each month has had a major impact.

Read more here: https://www.ft.com/content/4fd81416-9735-11e9-9573-ee5cbb98ed36

Forbes Africa 30 Under 30 2019

Forbes Africa 30 Under 30

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