Ramaphosa will face key period for reform progress

2020 ◽  
Keyword(s):  
Economic Reforms ◽  
Focus Attention ◽  
Public Enterprises ◽  
Content Type ◽  
Investor Confidence ◽  
Opposition Parties

Subject Ramaphosa's reform challenges. Significance A recent push among ruling ANC factions to force President Cyril Ramaphosa to dismiss Public Enterprises Minister Pravin Gordhan stalled at a series of party and government meetings earlier this month. Widely seen as a proxy for undermining the president himself, the moves against Gordhan focus attention on the progress and problems of Ramaphosa’s efforts to clean up government and introduce wide-ranging economic reforms. Impacts Continuing speculation about Gordhan and changing departmental control over Eskom will undermine the utility’s new CEO. The ANC’s plans to keep SAA as a state entity will dampen investor confidence over wider SOE reforms. Despite the ANC’s travails, it will benefit from leadership changeover and turmoil in the main opposition parties.

South Africa's Eskom faces formidable reform tests

2018 ◽  
Keyword(s):  
Trade Unions ◽  
Land Reform ◽  
Constitutional Amendment ◽  
Public Enterprises ◽  
Content Type ◽  
Rating Agency ◽  
Liquidity Crisis ◽  
Opposition Parties

Significance The appointment follows Minister of Public Enterprises Pravin Gordhan's reconstitution of the Eskom board in January, aimed at restoring credible governance to the utility, which has been plagued by corruption allegations and a liquidity crisis. Hadebe is the twelfth acting or permanent head of Eskom in the last decade. Impacts Partial reforms to state-owned enterprises (SOEs) are unlikely to be sufficient for rating agency upgrades later this year. ANC efforts to tone down proposed controversial land reform measures, by avoiding constitutional amendment, may partially placate investors. Proposed tariff hikes by Eskom will face opposition from opposition parties, trade unions and industry groups.

Guyana election doubts spark international concern

2020 ◽  
Keyword(s):  
International Community ◽  
Focus Attention ◽  
National Unity ◽  
Content Type ◽  
Election Result ◽  
Oil Revenues ◽  
Ruling Party ◽  
Opposition Parties

Significance These results indicate that the incumbent A Partnership for National Unity-Alliance for Change (APNU-AFC) coalition has narrowly won re-election, returning David Granger as president for another term. However, opposition parties have contested the results, with the international community also voicing concerns about the conduct and outcome of the elections. Impacts The contested election count is likely to lead to an overhaul of GECOM staffing and procedures once the current dispute is settled. Companies are set to hold off new investments in Guyana until the incoming government and policy stance are confirmed. The fraud allegations will also focus attention on May elections in neighbouring Suriname, whose ruling party is also seeking re-election. Control over expected windfall oil revenues will make this election result especially hotly contested.

Terrorism weighs down Tunisia's economic recovery

2015 ◽  
Keyword(s):  
Economic Reforms ◽  
Economic Recovery ◽  
Foreign Investor ◽  
Public And Private ◽  
Content Type ◽  
Investor Confidence ◽  
Good Relationship ◽  
The Public ◽  
The Face ◽  
Ruling Party

Significance Achieving this goal will require discipline in keeping increases in public sector wages to their projected levels -- no easy task in the face of still-restless labour at a time of division within the ruling party, Nidaa Tounes. Impacts A good relationship with the IMF could facilitate other lending -- from both the public and private sectors. However, troubles within the ruling coalition could undermine foreign investor confidence. Political divisions could also hinder crucial economic reforms, further delaying recovery.

Institutional structures and the strength of investor confidence in Africa

2017 ◽  
Vol 59 (6) ◽  
pp. 899-915 ◽  
Author(s):  
Otuo Serebour Agyemang ◽  
Millicent Kyeraa ◽  
Abraham Ansong ◽  
Siaw Frimpong
Keyword(s):  
Property Rights ◽  
Rule Of Law ◽  
Political Stability ◽  
Economic Reforms ◽  
African Countries ◽  
Content Type ◽  
Investor Confidence ◽  
Country Level ◽  
Institutional Structures

Purpose This paper aims to examine the role of country-level institutional structures in strengthening the level of investor confidence in Africa while controlling for real GDP growth, interest rate spread, inflation and country credit rating. Design/methodology/approach The paper uses panel data for the period 2009-2013. It takes into account the rule of law, political stability, regulatory quality, voice and accountability, control of corruption and property rights as potential institutional drivers of the level of investor confidence. These factors are based on their relative relevance from the extant literature. Correlated panels-corrected standard errors model was used to establish the relationship between the institutional structures and the strength of investor confidence. Findings The overall results show that rule of law, voice and accountability, property rights and political stability exhibit significant positive relationship with the strength of investor confidence in African economies. This implies that asking African economies to strengthen these institutional structures will result in enhanced investor confidence in their economies. This suggests that the establishment of these institutional structures is an effective tool to enhance investor confidence in African economies. Practical implications In addition to the long-term goal of promoting economic reforms, a corresponding long-term goal of strengthening institutional structures in African economies should be taken into consideration. Instead of waiting for their economic reforms to take effect, governments in African countries can, to some degree, attract investors into their economies by establishing credible institutional structures. Originality/value This paper contributes to the knowledge on how country-level institutional structures influence the level of investor confidence in the context of Africa.

Angolan reform efforts face structural constraints

2018 ◽  
Keyword(s):  
Interest Rates ◽  
Foreign Debt ◽  
Economic Reforms ◽  
Structural Constraints ◽  
Political Will ◽  
Content Type ◽  
Investor Confidence ◽  
Domestic Debt ◽  
High Inflation ◽  
Government Interference

Subject Angolan economic reforms. Significance President Joao Lourenco's government has started reforms aimed at diversifying the oil-dependent economy. It has requested IMF assistance with implementing its new economic rescue plan, which will also be supported by higher global oil prices and strong political will. Luanda's anti-corruption drive could also foster greater foreign investor confidence, which has suffered in the wake of recent money laundering scandals. Impacts A proposed plan to privatise 70 state-owned companies could spur private activity as government interference in the economy is reduced. Domestic imbalances, such as high inflation and interest rates, will remain significant barriers to private sector growth. Efforts to expand domestic debt markets could ease foreign debt pressures, but this will require much lower interest rates.

South Africa’s Ramaphosa will stress good governance

2018 ◽  
Keyword(s):  
Local Community ◽  
Good Governance ◽  
Public Enterprises ◽  
Short Term ◽  
Land Expropriation ◽  
Content Type ◽  
General Elections ◽  
Alliance Partners ◽  
Business Family ◽  
Opposition Parties

Significance Ramaphosa appointed established individuals to the key finance and public enterprises portfolios while removing several figures associated with his predecessor, Jacob Zuma, and the controversial Gupta business family. Nevertheless, the new president kept several compromised officials in peripheral positions in the interests of ANC ‘unity’ ahead of all-important general elections in 2019. Impacts Relations between the ANC and its 'tripartite alliance' partners should improve in the short term. Controversial land expropriation measures will prove protracted and will require careful balancing of business and local community demands. Increasing policy divides between the main opposition parties may undermine the prospects of an electoral coalition for 2019.

Ecuador’s CONAIE to present a major challenge to Lasso

2021 ◽  
Keyword(s):  
Presidential Election ◽  
Economic Reforms ◽  
Content Type ◽  
Popular Resistance ◽  
Investor Confidence ◽  
Central Figure ◽  
Run Off ◽  
Indigenous Movement ◽  
The Government ◽  
Media Channels

Significance Iza, a central figure in 2019 anti-austerity protests, replaces Jaime Vargas, who was expelled from CONAIE after backing 'Correista' candidate Andres Arauz in April’s presidential election run-off. Vargas’s expulsion illustrates divisions within Ecuadoran indigenous politics. CONAIE nevertheless remains a powerful force that will challenge the government. Impacts Private media channels will attempt to discredit Iza and CONAIE and undermine wider support for the indigenous movement. Correa will attempt to strengthen links within CONAIE and the Pachakutik party and build a broader leftist alliance. Popular resistance to Lasso’s economic reforms might undermine investor confidence in Ecuador.

Proposed Mexican financial legislation sparks concerns

2021 ◽  
Keyword(s):  
Central Bank ◽  
Commercial Banks ◽  
Legal Change ◽  
Content Type ◽  
Investor Confidence ◽  
Potential Impact

Significance The move, however, has proven controversial, generating a backlash over its potential impact on commercial banks and the central bank (Banxico), which sees it as a threat to its autonomy. The proposals come amid an unusual surge in remittances flowing into the country. Impacts Any legal change that is seen as affecting Banxico’s autonomy would damage investor confidence significantly. AMLO may stop legislation changes if they cause a depreciation of the peso. Mexico’s economy looks set to become far more reliant on remittance income than it has been in past years.

Uganda’s opposition will gain ground despite poll loss

2021 ◽  
Keyword(s):  
Youth Unemployment ◽  
National Politics ◽  
Content Type ◽  
Legal Challenges ◽  
The Government ◽  
Opposition Parties

Significance The opposition has rejected the results and is preparing legal challenges to Museveni’s victory. Impacts NRM internal cohesion will fray as Museveni becomes a more polarising figure in national politics. The NRM will increasingly try to co-opt opponents to neutralise the growing momentum and collaboration among opposition parties. The government will likely launch developmental efforts to tackle youth unemployment and thus avert unrest.

Energy reform will hit investor confidence in Mexico

2021 ◽  
Keyword(s):  
United States ◽  
International Trade ◽  
Trade Agreements ◽  
The United States ◽  
Energy Prices ◽  
Content Type ◽  
Investor Confidence ◽  
International Trade Agreements ◽  
The Government ◽  
Energy Reform

Significance The government will appeal the rulings, which follow action by renewables firms. With constitutional battles over energy investments already unfolding, the future of Mexico’s energy framework has been thrown into turmoil. Impacts Increasing energy prices will probably push inflation above Banxico’s upper target limit of 4%. AMLO’s apparent disregard for international trade agreements will strain relations with the United States. AMLO’s pro-austerity fiscal stance could take a toll on his popularity.

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