Davos: Spurring growth in developing countries [Business Africa]

The African continent fueled many debates at the World Economic Forum (WEF) in Davos, Switzerland.

The forum’s discussions centred around sustainable solutions, ranging from energy transition, reimagining globalisation, inclusion and diversity to prepare the world to collaborate and share equally in all future opportunities. How can the African continent position itself to thrive in an equitable global village?

Executive Director of ITC International Trade Center, Pamela Coke-Hamilton joined us to elaborate more on the issues discussed with an African focus.

– 2023 Africa Economic Outlook: the challenges ahead –

Twenty-three African countries were either over-indebted or at high risk of being so in September 2022, the 2023 African Economic Outlook revealed. The outlook prepared by the African Development bank warned that this level of indebtedness is alarming, and that African countries may need more time to repay. 

The report cautions on the current global and regional risks which include soaring food and energy prices, tightening global financial conditions and the associated increase in domestic debt servicing costs.

Climate change, with its adverse effects on food supply and the potential risk of political change in countries holding elections in 2023, are equally daunting threats.

The bank also calls for measures to “reduce structural budget deficits and public debt accumulation”, as well as “effective coordination of fiscal and monetary actions” and “stimulating intra-African trade”

– Sudan’s prized gum trees ward off drought –

Gum arabic, a resin tapped from the acacia tree, is used in everything from soft drinks to pharmaceuticals but for leading world producer Sudan it is also seen as a key weapon in the fight against desertification.

Sudan, in northeastern Africa, is among the countries hardest hit by climate change but is also the world’s largest producer of the raw gum.

Sudanese exports account for 70 percent of global gum supplies, according to AFD, the French agency for development. Since South Sudan broke away a decade ago, taking with it its large oil reserves, gum arabic has been one of Sudan’s main foreign currency earners. More details in the video report.