- Global gross domestic product (GDP) growth is projected to fall from 3.1 percent this year to 2.2 percent in 2023, the Organization for Economic Co-operation and Development (OECD) said Tuesday in its latest Economic Perspective.
The 2022 figure is about half the pace recorded in 2021 during the upsurge of the pandemic, and the projected growth rate for 2023 is well below what was forecast before the outbreak of the Russia-Ukraine conflict.
"Asia will be the main growth engine in 2023 and 2024, while Europe, North America and South America will see very low growth," he said.
The OECD expects the major emerging markets in Asia to account for about three-quarters of global GDP growth in 2023, while the US and European economies are expected to slow.
"Hold back by high energy and food prices, weak confidence, continued supply bottlenecks and the initial shock of tighter monetary policy, annual growth in the euro area in 2023 is projected to be 0.5 percent," the organization said.
The US economy would only grow 0.5 percent in 2023, compared to 1.8 percent in 2022.
Energy markets remain among the significant downside risks.
"Europe has come a long way to replenish its natural gas reserves and curb demand, but this winter in the northern hemisphere will certainly be challenging," he said, adding that higher gas prices or direct supply disruptions of gas would imply significantly weaker growth and higher inflation in Europe and the world in 2023 and 2024.
Accelerating investment in the adoption and development of clean energy sources and technologies will be crucial to diversify energy supply and ensure energy security, the OECD stressed. ■
UK state borrowing jumped last month, official data showed Tuesday, as the government cushions consumers from soaring energy bills which the OECD said could further push up inflation.
Public sector net borrowing hit £13.
5 billion ($16 billion) in October, up from £9.
2 billion a year earlier, the Office for National Statistics said in a statement.
It came as the Organisation for Economic Co-operation and Development forecast the UK economy would contract more than any of the world’s seven most advanced nations next year.
The organisation added that the government’s cap on energy bills could have been better targeted, placing the focus on the poorest.
“Better targeting of measures to cushion the impact of high energy prices would lower the budgetary cost, better preserve incentives to save energy, and reduce the pressure on demand at a time of high inflation,” the OECD concluded.
The organisation added that the UK economy would contract 0.
4 percent next year.
This was a more positive verdict, however, compared to the UK government which predicts output to shrink 1.
4 percent in 2023 in a recession it says is already underway.
– Inflation fallout –Despite the bleak outlook, Prime Minister Rishi Sunak’s spokesman on Tuesday said that UK growth this year would be the highest of the Group of Seven countries.
The government and OECD both see UK growth of above four percent this year.
Current economic challenges “are affecting different countries at slightly different times”, the spokesman said.
“We emerged from the pandemic faster than many other countries in Europe.
But some of these challenges are shared… You only have to look at inflation.
” Official data released Tuesday showed “October’s high borrowing figure largely is a consequence of the government’s decision to shield households from most of the surge in energy prices”, noted Pantheon Macro analyst Samuel Tombs.
Sunak’s Conservative government has maintained subsidies for household energy bills introduced by his predecessor Liz Truss after prices rocketed in the wake of Ukraine’s invasion by key producer Russia.
UK inflation stands at a four-decade high above 11 percent, resulting in more higher interest repayments for the government.
Data Tuesday showed that total UK debt rose in October to almost £2.
46 trillion, or 97.
5 percent of gross domestic product.
“It is right that the government increased borrowing to support millions of businesses and families,” finance minister Jeremy Hunt said in response to the latest release on public finances.
“But to tackle inflation and ensure the economic stability needed for long-term growth, it is vital that we put the public finances back on a more sustainable path.
” In a budget last week, Hunt hiked taxes and slashed spending to reverse Truss’s unfunded tax cuts that had sent the pound sliding and UK borrowing costs surging.
Keir Starmer, leader of Britain’s main opposition party Labour, told business leaders Tuesday that his party would “give Britain the clear economic leadership it needs” if elected in the next general election not due until 2024.
“We will inherit an economy that’s been damaged by the last 12 weeks and the last 12 years, and we need to fundamentally accept that,” he told the annual conference of the Confederation of British Industry.
- The New Zealand government confirmed on Tuesday that the Clean Car Standard will be phased in from December 1, significantly reducing CO2 emissions from light-duty vehicles.
"Emissions from our light-duty fleet are the largest source of transport emissions in New Zealand, thanks in part to having some of the most fuel-efficient and emission-intensive vehicles in the OECD (Organization for Economic Co-operation and Economic Development). said Transport Minister Michael Wood.
"This is costing the Kiwis at the pump and is damaging our health and the environment," Wood said, adding that the supply of fuel-efficient vehicles must be increased, and that New Zealanders need more choice in the variety low and zero. emission vehicles.
Starting January 1, 2023, imported vehicles incur a credit or charge based on CO2 emissions, he said, adding that the system encourages importers to bring in a sufficient number of low- and zero-emission vehicles that attract credits to offset the charges applied to the highest. -issuing vehicles.
The standard was produced following discussions with vehicle importers, Wood said, adding that legislation to allow phased implementation will be passed this week.
The Clean Car Standard requires vehicle importers to progressively reduce CO2 emissions from both new and used light-duty vehicles brought into New Zealand. This is achieved by setting CO2 targets that become more ambitious year by year, the minister said.
Importers are encouraged to bring in vehicles with lower emissions, which burn less fuel and "will stop New Zealand from being the dumping ground for the world's dirtiest vehicles," Wood said. ■
The Emerging Markets Climate Action Fund invests $25 million and EIB (www.EIB.org) Global invests $75 million in Alcazar Energy Partners II; The fund will finance renewable energy projects in the Middle East, North Africa, Eastern Europe and Central Asia; This joint commitment of EMCAF and EIB Global will support the development of onshore wind and solar photovoltaic, and potentially hydropower, biomass or battery-based electricity storage projects.
The Emerging Market Climate Action Fund (“EMCAF”) has announced today a $25 million investment into Alcazar Energy Partners II, a fund providing early-stage equity financing to develop, construct and operate renewable energy projects in the Middle East, North Africa, Eastern Europe and Central Asia. This commitment is in parallel to EIB Global, the dedicated arm for outside the EU of the European Investment Bank (EIB) Group, which provides $75 million to the fund.
Alcazar Energy Partners II has a target size of $500 million and will invest in onshore wind and solar photovoltaic, with additional potential investments in hydropower, biomass or battery-based electricity storage or other low-carbon technologies.
The Fund is expected to create 15.000 construction jobs and contribute to the installation of over 2 Gigawatt of new clean energy capacity.
Thereby saving 3.2 million tons of greenhouse gas emissions per year, generating clean energy to power over one million households.
EIB Vice-President Ambroise Fayolle commented: “To meet the Paris climate goals and strengthen global energy security, the world’s energy systems must decarbonise as soon as possible.
To do this, the financial system needs to mobilise trillions of dollars from private sector green energy projects.
I am delighted that we are announcing investments from EMCAF and EIB Global in the Alcazar Energy Partners II Fund today.
This support will help crowd in further contributions from investors and ensure that the fund plays an important role in accelerating the green transition in its countries of operation.” Tobias Pross, CEO of AllianzGI added: “Emerging markets are where the money for climate adaptation and mitigation is needed most and where it will have a much more immediate impact than in developed countries.
I am proud that our EMCAF investments are now gaining traction on the ground in emerging markets – not just helping to fight climate change, but to support healthy economic growth in this region.
We are grateful that EIB leveraged this investment, and we are keen to deploy more like these quickly in other countries as well.” Daniel Calderon, Co-Founder and Managing Partner of Alcazar Energy, commented: “The successful first close of AEP-II is a tribute to the disciplined and responsible work of our Alcazar team, who originated, developed, and exited AEP-I’s portfolios, creating value for investors and, most importantly, for the countries and communities where AEP-I invested.
AEP-II is privileged to have the confidence of an outstanding group of public and private institutions to invest and develop in renewable energy projects, mobilising more than $2bn of foreign direct investment from OECD economies to build sustainable infrastructure where it is needed most.” EMCAF is an innovative blended finance fund initiated jointly by the EIB and Allianz Global Investors (AllianzGI) to finance climate mitigation and adaptation as well as environmental projects in Africa, Asia, Latin America and the Middle East. During its summit in Elmau (Germany) in June 2022, the Group of Seven (G7) endorsed (https://bit.ly/3Gesxxr) EMCAF as an example of a concrete innovative and market-led approach to mobilising private investments for climate-relevant infrastructure and to enhance multilateral finance and collaboration.
Launched during COP26 in November 2021 by the EIB and AllianzGI, EMCAF is an innovative blended finance vehicle with a €600 million target.
The governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, Folksam Group and the EIB are its anchor investors.
EMCAF provides early-stage financing to greenfield climate transition infrastructure in emerging and developing markets and focuses on climate mitigation, climate adaptation, and environmental projects.
EMCAF has already made its first investment in the adaptation focused ARCH Cold Chain Solutions East Africa Fund, financing temperature-controlled storage and distribution infrastructure in East Africa that aims to generate emissions reductions from post-harvest food loss.
The project comprises storage, distribution and related services and activities that maintain a given temperature range for a product or range of products.
EIB at COP27 Find an overview of EIB at COP27 on our dedicated website (https://bit.ly/3EE793P).
The EIB has a pavilion in the side event area of the blue zone and is running a series of events on numerous topics.
You will find the full agenda here (https://bit.ly/3WWYZun).
You are welcome to join our virtual attendee hub to watch the sessions either live or later at your convenience, and network with attendees.
With an easy two-step registration process, you will always have the latest information on our agenda.
Budget and Tax Law Amendment Bill 2023 for Public Comment The government proposes to extend the Research and Development (R&D) tax incentive beyond December 31, 2023, likely for a period of 10 years after a consultation process with industry stakeholders.
However, given the experience gained in awarding applications and the review carried out, the government is of the opinion that the R&D tax incentive requires some refinement.
It is the only political instrument designed to promote the early stages of R&D.
The proposed refinements to section 11D of the Income Tax Act will bring the incentive closer to its intended goals.
The 2021 budget review indicated that the government would review the research and development tax incentive.
On December 15, 2021, the National Treasury and the Department of Science and Innovation jointly released a discussion paper entitled Review of the Design, Implementation and Impact of South Africa's Research and Development Tax Incentive for public comment.
The discussion paper included a link to an online survey website.
In the 2022 Budget Revision, the National Treasury announced that the research and development (R&D) tax incentive will be extended until December 31, 2023 to allow the incentive revision to be finalized, as there was not enough time to conduct a public consultation between the publication of the discussion document and Budget 2022.
Responses to the survey were received from 74 stakeholders, some of whom provided additional comments in writing.
A public workshop was held on April 7, 2022 to discuss written comments and survey results and better understand industry concerns.
The draft enhancements and accompanying explanatory memorandum published with this press statement are being released for public comment today.
Interested parties will have 30 days to submit their comments.
To be clear, the proposed refinements do not constitute a tax bill.
Based on these proposals and all public comments received, a final proposal will be included in the 2023 Budget for inclusion in the proposed Tax Laws Amendment Act of 2023 (TLAB).
The usual public consultation process will then be carried out.
Posting these suggested refinements today gives the public an additional opportunity to provide input before we see them in the 2023 TLAB draft.
The proposed amendments include the following: Refine the definition of R&D to make it simpler to understand and award, resulting in an easier application process; Clarifying that the intention has always been that the incentive only applies to activities with the objective of resolving a scientific or technological uncertainty; Moving away from a "bottom line" approach or IP statute to acknowledge the reality that R&D involves uncertainty and risk, and that it is impractical to expect taxpayers to have detailed knowledge of how their R&D will unfold D provided at the time of the request.
for the incentive; Instead, move towards incorporating some principles of the OECD Frascati Manual, ie that activities should be novel, uncertain, systematic and transferable and/or replicable; The suggested approach removes the "innovative" requirement from the definition of R&D, which has created unwelcome complexity and misunderstanding (the government acknowledges that innovation can occur without R&D, and does not necessarily encompass R&D).
+D); To ensure that R&D activities are not obvious or inventive in order to qualify for the incentive, the revised definition should include testing whether a professional in the field with the appropriate knowledge and skills would resolve that scientific or technological uncertainty without undertaking any activity.
R&D (ie systematic research or systematic experimental activities); Modify the exclusion of internal business processes so that – if an activity is systematic research or systematic experimental with the aim of resolving a scientific or technological uncertainty and meets the proposed (revised) definition of R&D for the purposes of this incentive, it should be considered R&D – regardless of whether it is intended for sale or its use is granted to related parties; Introduce an exclusion for agrochemical products so that activities carried out solely in preparation for product registration to comply with the Department of Agriculture, Agrarian Reform and Rural Development are excluded from the incentive; Introduction of a six-month grace period for receipt of pre-approval applications to allow smaller applicants, new applicants, or applicants conducting R&D in a new field to collect more information on R&D activities planned so that they are in a better position to provide detailed information and thus benefit from the incentive; Introduce an information disclosure requirement to allow the SARS Commissioner to disclose certain information to the Minister for Higher Education, Science and Innovation which will enable a better monitoring and evaluation function; and Introduce sanctions for breach of secrecy.
The proposed changes to refine and simplify the legislation, combined with moving to an online process and improving the application process for smaller businesses, are expected to improve uptake of the incentive.
The draft improvements to section 11D of the Income Tax Law and the attached explanatory memorandum can be found on the website of the National Treasury at (www.treasury.gov.za) and on the website of the Tax Service of South Africa at (www.sars.gov.za).
Due Date for Written Comments Please submit written comments to the National Treasury Tax Policy Repository at 2022AnnexCProp@Treasury.gov.za (link sends email) and TaxIncentiveReviews@Treasury.gov.za (link sends email).
email), and SARS at firstname.lastname@example.org (link sends email) before the close of business on November 7, 2022.
Experts at the WTO Public Forum discuss greening micro, small and medium-sized enterprises to reap the benefits of the African Continental Free Trade Area In a session organized by the Economic Commission for Africa (UNECA) and the Trade Center International (ITC) as part of the 2022 World Trade Organization (WTO) Public Forum on September 27, 2022, experts urged the private sector to seize the opportunities brought by the green transition in Africa.
The panel discussion titled "MSMEs: The Key to Achieving Sustainable Profits under the AfCFTA", moderated by Melaku Desta, Coordinator of ECA's Africa Center for Trade Policy, explored sustainable initiatives to embed green solutions in Africa's small businesses and attracted over 100 online and face-to-face participants.
Panelists also underscored the sustainable gains that can be reaped from green trade in conjunction with the African Continental Free Trade Area (AfCFTA) and called on micro, small and medium-sized enterprises (MSMEs) to anticipate challenges as companies seek to integrate green solutions.
In her opening remarks, Dorothy Tembo, Deputy Executive Director of ITC, highlighted ITC's Green2Compete initiative, which helps small businesses improve their competitiveness by integrating green production techniques for sustainable trade.
ITC is also working closely with the African Standards Organization (ARSO) to increase the transparency of private sustainability standards and has plans to scale up its work with market partners to achieve harmonization of these environmental standards, making them more accessible to small businesses.
In her remarks, Hermogène Nsengimana, Secretary General of ARSO, emphasized the need to prioritize the harmonization of standards to achieve sustainability.
Lately, the sustainability and resilience of value chains have become more important due to the disruptions induced by COVID-19 and the demand for more sustainable production and trade has increased.
This was stated by Robert Hamwey, Economic Affairs Officer of the United Nations Conference on Trade and Development (UNCTAD).
On strengthening the capacities of MSMEs to improve their competitiveness in national, regional and global markets, Annalisa Primi, Head of Economic Transformation and Development at the OECD Development Centre, underscored the need to reform policies that divide sectors informal and formal, in order to enable the poor to participate in markets and engage in higher value-added business activities.
Describing the importance of increased investment in Africa's green energy transition, Maximiliano Méndez-Parra, Principal Fellow at ODI, affirmed the role the AfCFTA can play in securing investment in green energy and technology.
The ECOWAS Regional Competition Authority (ERCA) and the Trade Directorate of the ECOWAS Commission organized a competition policy training for stakeholders from Member States from 20 to 23 September 2022 in Accra, Ghana with the technical and financial support of Expertise France.
The objective of this training session is to urgently provide negotiators from ECOWAS Member States with basic knowledge on competition law and policy.
The meeting highlighted the implications of adopting a competition policy at the continental level in relation to national and regional competition rules.
Finally, he outlined a common ECOWAS position in the framework of the AfCFTA negotiations on competition.
The opening ceremony of the training featured three speeches.
In his speech, Dr. Simeon Koffi, Executive Director of the ERCA, on behalf of the President of the ECOWAS Commission, acknowledged the presence of all the expected national actors and their commitment to the ongoing negotiations at the continental level.
He also pointed out the positive dynamics of developing a competitive framework at the national, regional and continental levels, with the harmonization and adoption of rules in accordance with the best international standards, a development that would consolidate the development of the capacities of the actors.
Mr. Augustine Owusu, representative of Expertise France, expressed his satisfaction with the cooperation between the ECOWAS Commission and his organization in the framework of the training session.
He also wished that this cooperation be strengthened and expressed the availability of Expertise France to accompany ECOWAS in promoting a competitive environment and regional integration.
In his opening speech, Mr. Osvaldo Abibe, President of the ECOWAS Trade Experts Meeting, recalled the issues that will be discussed during the meeting and stated that the different stages of the competition negotiations reflect the need to provide interested parties with useful knowledge to better understand the aspects and implications of competition laws at the continental level.
He encouraged the participants to build on the knowledge gained during the training session.
The participants thanked the two facilitators of the training, Ms. Lynn Robertson from the OECD Competition Division and Mr. Sami Ouattara, Regional Competition Consultant.
Topics covered during the training session included the benefits of competition policy for a national economy; the fight against cartels and all horizontal and vertical agreements harmful to competition; the concept of the market; merger control, especially mergers; procedural fairness and transparency; competitive evaluation of laws and regulations; the concept of competitive neutrality; market power and abuse of dominant position; state aid; the AfCFTA protocol on competition and its implications for ECOWAS and its member states.
The capacity building session was an opportunity to highlight ECOWAS' position over the competition.
The States Parties, negotiators of the AfCFTA protocol, were urged to appropriate the regional consensus on the protocol and make ECOWAS' voice heard in the continental negotiations.
The African Development Bank (AfDB) and United Cities and Local Governments of Africa (UCLG Africa) (www.UCLGA.org) in collaboration with GiZ and the Sahel and West Africa Club of the OECD organized from 19 to 24 September 2022 a training session on: Access to capital markets for African cities and sub-national governments.
The training was attended by CFOs from some forty African cities and subnational governments hailing from 26 countries: Senegal, Liberia, Gabon, Congo, Cameroon, Malawi, Kenya, Mauritius, Zambia, Mozambique, Eswatini, Zimbabwe, Botswana, Central African Republic, Madagascar, Rwanda, Nigeria, Morocco, Mauritania, Benin, Burkina Faso, Mali, Niger, Tunisia, Nigeria, Ivory Coast.
The opening ceremony was marked by several speeches delivered by: Mr. Stefan Atchia, Manager of the Urban Division of the African Development Bank; Mr. Ripert Boussoukpé, Secretary General of the Regional Council for Public Savings and Financial Markets (CREPMF); Mrs. Harlette Badou N'GUESSAN KOUAMÉ, Mayor of Arrah and Secretary General of the Union of Cities and Municipalities of the Ivory Coast (UVICOCI).
The opening speech was given by the Hon. Mr. Eugène Aka Aouélé, President of the Economic, Social, Environmental and Cultural Council of Côte d'Ivoire, President of the Assembly of Regions and Districts of Côte d'Ivoire and President of the South- Comoé region.
What is the Capital Market?
What are the institutions of the capital market ecosystem?
What are the key concepts of the financial analysis of Cities and Subnational Governments?
What are the balance sheets and financial ratios to consider?
How do you develop credible financial forecasts?
What criteria are considered by rating agencies?
How does a stock market and a municipal bond issue work?
What is the content of the support provided by brokerage and management companies?
What is securitization and how can it be used?
How to access "green finance"?
These are some of the questions discussed during the group work and the case studies, which allowed the participants to obtain a more detailed understanding of the capital markets ecosystem and to appropriate a wide range of tools to access it.
Participants also had the opportunity to learn about the African Development Bank Group Financing Instruments and the African Development Bank Group Subnational Lending Guidelines.
The training program, which began in Abidjan, will continue in Johannesburg.
Visits to the Regional Council for Public Savings and Financial Markets (CREPMF) were also organized, where the participants were received by the President, Mr. Badanam Patoki, and the Secretary General, Mr. Ripert Boussoukpé; and to the Abidjan Regional Stock Exchange (BRVM) where the Director General, Mr. Kossi Amenouvé, welcomed the participants.
These visits allowed the participants to touch the reality of the functioning of the institutions that operate in the capital markets.
The training session offered the opportunity to renew the governing bodies of the Network of Directors and Heads of Financial Services of African Local Authorities (Africa FINET).
Thus, they were elected - President of the Network: Mr. Jeremiah Sibande, from Lilongwe (Malawi).
- First Vice-Chairman: Mr. Jean-Bosco Massoma Ekwalla from Douala (Cameroon) - Second Vice-Chairman: Ms. Sylvie Some Ouoba from Ouagadougou (Burkina Faso) - Third Vice-Chairman: Mr. Kamal Jelouane from Agadir (Morocco) - Fourth Vice-Chairman: Mr Jean Rubangutsangabo from Kigali (Rwanda).
In addition, two honorary members were appointed: Mr. Reshma Bukhory Bahadoor from Flacq (Mauritius) and Ms. Olarike Olayinka from Ekiti State (Nigeria) The training session was closed on Saturday, September 24 at 11:00 am by Mr. Yapi Fidel, General Director of Decentralization and Local Development (DGDDL) of the Ministry of the Interior and Security.
The second training session on access to capital markets for cities and subnational governments in Africa is scheduled to take place in Johannesburg, South Africa in January 2023.
This year was supposed to confirm the world economy’s comeback from the Covid pandemic crisis.
Instead, the six-month-old war in Ukraine has sparked fears of recession.
Two ‘small’ economies rattle world “Six short months ago the macro landscape was markedly different from today,” the financial data firm S&P Global said in a recent report.
Both the United States and eurozone economies were expected to see strong growth, and elevated inflation levels were seen by policymakers and markets as transitory.
“Things have changed, and not for the better,” added S&P Global.
Global growth forecasts have been repeatedly cut, with the International Monetary Fund now expecting a 3.
2 percent expansion compared to nearly five percent earlier.
Russia and Ukraine together account for just two percent of global output and trade, according to the OECD.
But Russia is a major exporter of oil, gas and agricultural goods, while many developing countries rely heavily on grain from Ukraine, one of the breadbaskets of the world.
The war has disrupted those shipments, causing energy and food prices to surge worldwide.
Inflation has soared everywhere, prompting central banks to aggressively hike rates — a move that usually tames prices but slows economic activity.
Prices soar everywhere In Tunis, “low-income people are living a nightmare”, said Naima Degaoui, a 70-year-old former nurse.
“Prices on almost everything are rising: peaches, apricots, peppers for which the prices have quadrupled, red meat,” she added.
Some 11,000 kilometres (6,800 miles) away in the Chilean city of Valparaiso, 33-year-old social worker Nayib Pineira said “everything is much more expensive”.
He said local gasoline prices have risen to 1,300 pesos per litre (1.
42 euros per litre, $5.
50 per US gallon) — “nearly what Europeans pay, but with a European salary”.
In Europe, natural gas prices have soared as Russia has slashed deliveries to countries that oppose the war.
Oil prices have jumped, too.
The rise in energy prices has increased the costs of making and shipping an array of goods.
Energy-intensive sectors such as the chemicals and metals industries have been particularly hard hit, especially in Germany which had become extremely dependent upon cheap Russian natural gas.
Policymakers scramble to control situationFaced with surging inflation, developed nations have reverted to supporting their economies just when they were hoping to wean them off aid provided to help with Covid lockdowns.
With support for heating costs, cuts to gasoline taxes, price caps and windfall taxes on oil companies, European nations have pulled out the stops to cushion the blow to consumers from higher energy costs.
In the United States, Congress passed a $370 billion investment package called the Inflation Reduction Act that aims to contain health care costs and promote alternative energies.
Central banks, meanwhile, are expected to continue their aggressive interest rate hikes.
Stock markets have been spooked by the monetary tightening, with the S&P 500 index suffering its worst half-year performance in 14 years.
Global slowdown… then recession?
There is precious little optimism right now: US consumer confidence is nearly at a record low, while that for German investors is at a two-year low point.
The Chinese property market is in a severe crisis, adding to problems caused by strict Covid lockdowns.
In Europe, there are worries that if Russia reduces gas deliveries even further there could be shortages and rationing during the coming winter.
Coupled with the tightening of monetary policy underway by central banks, fears have been rising of a global recession, although the main forecasters have so far discounted this possibility.
That is because there are also signs of resilience in the global economy.
The labour markets in both Europe and the United States remain strong.
The Biden administration has pointed to the strength of the US jobs market to argue that the US economy is not in recession despite two consecutive quarters of economic contraction.
The mixed signals prompted analysts at HSBC to compare the situation to the thought experiment by Nobel Prize-winning Austrian physicist Erwin Schroedinger to resolve a quantum paradox in which two states are simultaneously possible.
“In the same way that Erwin Schroedinger’s cat was both dead and alive at the same time, the global economy may be both in a recession and not — at least not yet,” they wrote.
The African Union defines 'youth' as someone between the ages of 15 and 35.
With 70% of sub-Saharan Africa's population under the age of 30, Africa has the youngest population in the world.
With such a thriving young workforce, the continent's economy has the opportunity to grow exponentially, but only if the next generations are given the tools they need.
It is crucial that young people are involved in decision-making processes and are provided with numerous opportunities for employment and innovation.
Depending on their needs and stage of life, access to financial services can empower young people and improve their well-being in the right circumstances.
According to research, children start developing good financial habits as early as seven years old.
A study conducted by the OECD for the G20 Global Alliance for Financial Inclusion shows that young people are more likely to choose non-traditional financial service providers, as they often have weak ties to the formal banking sector, both in sub-Saharan Africa as globally.
It should come as no surprise that this generation is driving fintech adoption globally given that they have never known a world without mobile, web and app-based services.
The study further revealed that; one in three internet users worldwide is under the age of 18, and globally, 71% of young people and just 48% of the general population use the internet.
Many national governments, including Costa Rica, Estonia, Finland, France, Greece, and Spain, have explicitly recognized Internet access as a human right since access to online information and services has become so crucial.
At Cellulant (www.Cellulant.io), we see fintech collaborations as a vehicle to promote financial inclusion, business expansion, and overall economic development in Africa.
We work daily to open options for people to become financially autonomous and empowered by giving global, regional and local businesses the rails they need to own their financial journeys.
We see collaborations with Fintech companies, especially those founded and led by young people, as a tool to promote financial inclusion and the growth of individual companies, as well as the economy of the African continent as a whole.
As some of our recent partnerships demonstrate, Young African Founders in Africa is making significant strides across a variety of sectors to drive financial inclusion; In the Gig Economy: The one-stop financial platform for Africa's gig workers, ImaliPay (www.ImaliPay.com) has partnered with Cellulant for its payments infrastructure and solutions in Kenya and Nigeria.
Founded by 2 young Africans, Tatenda Furusa (https://bit.ly/3QoO9tw) and Sanmi Akinmusire (https://bit.ly/3zQi3Q8), ImaliPay is driving financial inclusion by enabling ImaliPay users to access services faster through Cellulant's pay rails while building an ecosystem where temp workers can create a safety net around their work through savings, credit and insurance that boost their productivity and economic empowerment .
Cellulant is also the payment processor for Gray (https://bit.ly/3JNRakz), a Y-combinator-backed fintech startup, powering thousands of Gray customers with their payments.
Gray offers a unique international money transfer service that allows its users to quickly send and receive international payments without restrictions.
Gray was launched in 2021 by Idorenyin Obong (https://bit.ly/3zK17uE) and Femi Aghedo (https://bit.ly/3zOl1Vr), who wanted to help Nigerians easily switch to local currency and access foreign currencies in your accounts Retail: Leveraging Cellulant's presence across the continent, where we have a presence in 35 countries, MarketForce (https://bit.ly/3AhDfzZ) has partnered with Cellulant to offer additional revenue opportunities for informal retailers by empowering them to be agents of major financial services, as well as access to payments, savings, investments, insurance, and buy now, pay later products.
Founded in 2018 by Tesh Mbaabu (https://bit.ly/3QmKE6O) and Mesongo Sibuti (https://bit.ly/3C3ZJG8), MarketForce is an all-inclusive B2B trading platform that enables informal traders in Africa digitally and conveniently source, order and pay for inventory, access financing, collect digital payments and earn extra money by reselling digital financial services like airtime, electricity tokens and bill payment through your RejaReja app.
In the remittance industry: At Cellulant, our goal is to simplify the way payments are made by making sure they are made in the most seamless way.
This fluidity is also needed in the remittance space, hence our partnership with Nala (https://www.Nala.com) to facilitate seamless cross-border payments and significantly reduce the cost of sending money from the UK and abroad.
USA to Africa.
Nala is a Y-Combinator-backed company, founded by Benjamin Fernandes (https://bit.ly/3SGQ7XL), that provides an app for Africans living in the UK and US to seamlessly send money to the continent .
Cellulant continues to drive payments across the continent, one transaction at a time, helping businesses explore how the evolution of digital payment solutions can help create jobs, increase service delivery efficiencies and foster financial inclusion of our young population to develop payment in Africa.
sector and promote economic development.