Most important country in Africa.
Essential The Africa the Media Doesn't Tell You About
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Most important country in Africa.
Naija da future 
New Honda CEO says no plans to help air bag firm Takata fund global recalls
By Minami Funakoshi
TOKYO (Reuters) - Honda Motor Co's new chief executive said the Japanese automaker has no plans for now to provide financial aid to Takata Corp , the air bag supplier at the center of a costly global safety recall that has dented Honda's public image as well as its earnings.
Speaking at his first news conference since taking the helm in June, Takahiro Hachigo said on Monday Honda has now set aside enough this year to cover the cost of recalling over 2 million cars with potentially faulty air bag parts made by Takata. The automaker recently restated last year's earnings to account for additional costs.
"We have money budgeted for quality-related costs, as we did last year, and we think we can respond within this allocated amount," Hachigo told reporters in the capital. Last month Honda revised its operating profit for the year ended March to 606.88 billion yen ($4.92 billion) from the 651.68 billion yen it reported in April to account for expanded recall costs.
At 55, Hachigo, begins his stewardship of Japan's third-biggest auto maker with a mission to restore the firm's reputation for quality. In the Takata air bag safety scare regulators have linked eight deaths to the component, all in cars made by Honda.
Hachigo's predecessor Takanobu Ito and other executives took a pay cut last October following a fifth recall of its Fit hybrid subcompact in a year, which had quality glitches unrelated to Takata-made inflators.
In total, tens of million of cars carrying Takata-made parts have been recalled around the world by a range of auto makers. Some Takata air bag inflators have exploded with too much force, spraying shrapnel inside vehicles, regulators have found.
As Hachigo seeks to develop business, he said on Monday the company remains open to alliances with other automakers - as long as such tieups are of benefit to Honda.
In one such deal the Japanese firm already has an alliance with General Motors Co to develop hydrogen fuel-cell technology.
Hachigo also said Honda began building cars in Africa this month by retooling part of a factory in Nigeria that previously made motorcycles. The company plans to produce 1,000 of its Accord sedans annually at the plant, with a view to boosting production if the local market grows.
(Additional reporting by Maki Shiraki; Editing by Kenneth Maxwell)
Read more: http://www.businessinsider.com/r-ne...kata-fund-global-recalls-2015-7#ixzz3fBGSh3mO
By Minami Funakoshi
TOKYO (Reuters) - Honda Motor Co's new chief executive said the Japanese automaker has no plans for now to provide financial aid to Takata Corp , the air bag supplier at the center of a costly global safety recall that has dented Honda's public image as well as its earnings.
Speaking at his first news conference since taking the helm in June, Takahiro Hachigo said on Monday Honda has now set aside enough this year to cover the cost of recalling over 2 million cars with potentially faulty air bag parts made by Takata. The automaker recently restated last year's earnings to account for additional costs.
"We have money budgeted for quality-related costs, as we did last year, and we think we can respond within this allocated amount," Hachigo told reporters in the capital. Last month Honda revised its operating profit for the year ended March to 606.88 billion yen ($4.92 billion) from the 651.68 billion yen it reported in April to account for expanded recall costs.
At 55, Hachigo, begins his stewardship of Japan's third-biggest auto maker with a mission to restore the firm's reputation for quality. In the Takata air bag safety scare regulators have linked eight deaths to the component, all in cars made by Honda.
Hachigo's predecessor Takanobu Ito and other executives took a pay cut last October following a fifth recall of its Fit hybrid subcompact in a year, which had quality glitches unrelated to Takata-made inflators.
In total, tens of million of cars carrying Takata-made parts have been recalled around the world by a range of auto makers. Some Takata air bag inflators have exploded with too much force, spraying shrapnel inside vehicles, regulators have found.
As Hachigo seeks to develop business, he said on Monday the company remains open to alliances with other automakers - as long as such tieups are of benefit to Honda.
In one such deal the Japanese firm already has an alliance with General Motors Co to develop hydrogen fuel-cell technology.
Hachigo also said Honda began building cars in Africa this month by retooling part of a factory in Nigeria that previously made motorcycles. The company plans to produce 1,000 of its Accord sedans annually at the plant, with a view to boosting production if the local market grows.
(Additional reporting by Maki Shiraki; Editing by Kenneth Maxwell)
Read more: http://www.businessinsider.com/r-ne...kata-fund-global-recalls-2015-7#ixzz3fBGSh3mO
thernbroom
Superstar
probably the most corrupt country in africa. Just back from uganda myself, grandfather got 200 acres of land just 45min outside the capital and a few acres in the city, offered me some if i wanted to come back and build a house 
be from uganda
Uganda tho
Sisters going to Ethiopia again. I wished I can go with her, but when she started buying tickets and such I did not have any money.
DirtyMoney
Banned
Lets network. Inbox.
VW Resumes Vehicle Assembling In Nigeria … after 20 years
German automaker, Volkswagen Automobile Group, has resumed vehicle assembling in Nigeria 20 years after suspending operations in the country following the collapse of its joint venture with the Federal Government.
Already, the auto giant says it has rolled out the first set of vehicles — Passat, Jetta, CC and Amarok models — from the rejuvenated Volkswagen auto assembly factory on the Badagry Expressway, Lagos.
The production, it said, was made possible through a partnership agreement it signed with a private auto company, the Stallion Group, for the assembly of the Volkswagen brand of vehicles in the country in line with the National Automotive Industrial Plan announced by the Federal Government in October 2013.
A statement by the Stallion Group quoted the leader of the Volkswagen Group’s delegation from Germany, Mr. Ratz Wolfgang, as saying, “Today marks the revival of the assembly of Volkswagen vehicles in Nigeria. Volkswagen has returned to Nigeria to continue a long history that began in the 1970s.
“We are certain that further growth is possible, which is why Volkswagen is constantly searching for new opportunities to increase its global market and sales potential, and we appreciate the fact that we are able to strengthen our business relationship with our professional partner, Stallion Group.”
The Stallion Group recently acquired the moribund Volkswagen of Nigeria plant, resuscitated it and commenced the assembling of buses, trucks, pick-ups and passenger vehicles at the facility.
Specifically, the group said it was assembling Nissan, Hyundai, Ashok-Leyland and IVECO vehicle brands at the factory, adding that it had developed a large team of skilled human resources following extensive training by specialists from the respective principals.
It stated that the launch of Volkswagen vehicles was another major catalyst for the revival of Nigeria’s automotive industry, which could lead to the development of multiple ancillary industries and component manufacturers, apart from fostering engineering skills and generating employment.
The Chairman, Stallion Group, Mr. Sunil Vaswani, said, “This is a great moment for Stallion in partnering a world leading global brand like Volkswagen. We are immensely pleased to bring back the proud legacy of Nigeria’s automotive industry, the Volkswagen brand that once was indigenously produced at the same premises.
“Stallion is committed to investing and expanding its operations in the automotive value chain across multiple global brands and paving the way for Nigeria to establish itself as a regional leader in the automobile eco-system.”
The Managing Director, Stallion Motors, Mr. Raju Sawlani, described the company’s partnership with the Volkswagen Group as noble and stressed that the Stallion Group had broken a new ground in partnering with a leading global brand like Volkswagen.
“This will further enable us to create employment, acquire technology for our industrialisation and reduce pressure on the country’s balance of payment position resulting from escalating vehicle import bill,” he said.
http://www.punchng.com/business/bus...vehicle-assembling-in-nigeria-after-20-years/
German automaker, Volkswagen Automobile Group, has resumed vehicle assembling in Nigeria 20 years after suspending operations in the country following the collapse of its joint venture with the Federal Government.
Already, the auto giant says it has rolled out the first set of vehicles — Passat, Jetta, CC and Amarok models — from the rejuvenated Volkswagen auto assembly factory on the Badagry Expressway, Lagos.
The production, it said, was made possible through a partnership agreement it signed with a private auto company, the Stallion Group, for the assembly of the Volkswagen brand of vehicles in the country in line with the National Automotive Industrial Plan announced by the Federal Government in October 2013.
A statement by the Stallion Group quoted the leader of the Volkswagen Group’s delegation from Germany, Mr. Ratz Wolfgang, as saying, “Today marks the revival of the assembly of Volkswagen vehicles in Nigeria. Volkswagen has returned to Nigeria to continue a long history that began in the 1970s.
“We are certain that further growth is possible, which is why Volkswagen is constantly searching for new opportunities to increase its global market and sales potential, and we appreciate the fact that we are able to strengthen our business relationship with our professional partner, Stallion Group.”
The Stallion Group recently acquired the moribund Volkswagen of Nigeria plant, resuscitated it and commenced the assembling of buses, trucks, pick-ups and passenger vehicles at the facility.
Specifically, the group said it was assembling Nissan, Hyundai, Ashok-Leyland and IVECO vehicle brands at the factory, adding that it had developed a large team of skilled human resources following extensive training by specialists from the respective principals.
It stated that the launch of Volkswagen vehicles was another major catalyst for the revival of Nigeria’s automotive industry, which could lead to the development of multiple ancillary industries and component manufacturers, apart from fostering engineering skills and generating employment.
The Chairman, Stallion Group, Mr. Sunil Vaswani, said, “This is a great moment for Stallion in partnering a world leading global brand like Volkswagen. We are immensely pleased to bring back the proud legacy of Nigeria’s automotive industry, the Volkswagen brand that once was indigenously produced at the same premises.
“Stallion is committed to investing and expanding its operations in the automotive value chain across multiple global brands and paving the way for Nigeria to establish itself as a regional leader in the automobile eco-system.”
The Managing Director, Stallion Motors, Mr. Raju Sawlani, described the company’s partnership with the Volkswagen Group as noble and stressed that the Stallion Group had broken a new ground in partnering with a leading global brand like Volkswagen.
“This will further enable us to create employment, acquire technology for our industrialisation and reduce pressure on the country’s balance of payment position resulting from escalating vehicle import bill,” he said.
http://www.punchng.com/business/bus...vehicle-assembling-in-nigeria-after-20-years/
Mali to build west Africa's first industrial-scale solar plant, to cost $58 million
10 JUL 2015 17:45AFP
MALI has signed an agreement with a Norwegian renewable energy specialist to build west Africa’s first industrial-scale solar power plant, the company announced in a statement on Friday.
Oslo-based Scatec Solar said it had signed up to build the 52 million-euro ($58 million) unit near the southwestern city of Segou and run it for 25 years.
“This landmark agreement signals the government’s commitment to meet the nation’s growing energy demand and to provide clean, renewable and affordable energy to our people,” energy minister Mamadou Frankaly Keita was quoted as saying.
The plant is expected to produce enough electricity each year to power 60,000 typical family homes, while cutting annual carbon dioxide emissions by about 46,000 tonnes.
Mali, a volatile, conflict-hit country of over 16 million people, has been plagued in recent years by chronic electricity outages.
The government reported last year that the country, which is almost two-thirds desert, had managed to supply just 45% of its electricity demand in 2013.
The administration in Bamako says Mali’s EDM-SA energy company—two-thirds owned by the state and a third owned by a subsidiary of the Aga Khan group—is in crisis, failing to ensure an adequate supply despite state subsidies worth 87.7 million euros in 2013.
“After several years of development efforts in the region, we can now move forward with the first utility-scale solar plant in west Africa,” Scatec Solar CEO Raymond Carlsen said.
“The Malian authorities have demonstrated decisive will to tackle the nagging issue of power supply.”
Scatec will own 50% of the Segou plant while the World Bank’s International Finance Corporation will hold 32.5 percent, leaving the remaining equity to local partner Africa Power 1.
The project is to be funded by a combination of traditional bank borrowing, a loan from the World Bank’s Investment Climate Fund and equity contributed by the partners.
http://mgafrica.com/article/2015-07...strial-scale-solar-plant#.VZ_pncWv5EQ.twitter
10 JUL 2015 17:45AFP
MALI has signed an agreement with a Norwegian renewable energy specialist to build west Africa’s first industrial-scale solar power plant, the company announced in a statement on Friday.
Oslo-based Scatec Solar said it had signed up to build the 52 million-euro ($58 million) unit near the southwestern city of Segou and run it for 25 years.
“This landmark agreement signals the government’s commitment to meet the nation’s growing energy demand and to provide clean, renewable and affordable energy to our people,” energy minister Mamadou Frankaly Keita was quoted as saying.
The plant is expected to produce enough electricity each year to power 60,000 typical family homes, while cutting annual carbon dioxide emissions by about 46,000 tonnes.
Mali, a volatile, conflict-hit country of over 16 million people, has been plagued in recent years by chronic electricity outages.
The government reported last year that the country, which is almost two-thirds desert, had managed to supply just 45% of its electricity demand in 2013.
The administration in Bamako says Mali’s EDM-SA energy company—two-thirds owned by the state and a third owned by a subsidiary of the Aga Khan group—is in crisis, failing to ensure an adequate supply despite state subsidies worth 87.7 million euros in 2013.
“After several years of development efforts in the region, we can now move forward with the first utility-scale solar plant in west Africa,” Scatec Solar CEO Raymond Carlsen said.
“The Malian authorities have demonstrated decisive will to tackle the nagging issue of power supply.”
Scatec will own 50% of the Segou plant while the World Bank’s International Finance Corporation will hold 32.5 percent, leaving the remaining equity to local partner Africa Power 1.
The project is to be funded by a combination of traditional bank borrowing, a loan from the World Bank’s Investment Climate Fund and equity contributed by the partners.
http://mgafrica.com/article/2015-07...strial-scale-solar-plant#.VZ_pncWv5EQ.twitter
Mali to build west Africa's first industrial-scale solar plant, to cost $58 million
10 JUL 2015 17:45AFP
MALI has signed an agreement with a Norwegian renewable energy specialist to build west Africa’s first industrial-scale solar power plant, the company announced in a statement on Friday.
Oslo-based Scatec Solar said it had signed up to build the 52 million-euro ($58 million) unit near the southwestern city of Segou and run it for 25 years.
“This landmark agreement signals the government’s commitment to meet the nation’s growing energy demand and to provide clean, renewable and affordable energy to our people,” energy minister Mamadou Frankaly Keita was quoted as saying.
The plant is expected to produce enough electricity each year to power 60,000 typical family homes, while cutting annual carbon dioxide emissions by about 46,000 tonnes.
Mali, a volatile, conflict-hit country of over 16 million people, has been plagued in recent years by chronic electricity outages.
The government reported last year that the country, which is almost two-thirds desert, had managed to supply just 45% of its electricity demand in 2013.
The administration in Bamako says Mali’s EDM-SA energy company—two-thirds owned by the state and a third owned by a subsidiary of the Aga Khan group—is in crisis, failing to ensure an adequate supply despite state subsidies worth 87.7 million euros in 2013.
“After several years of development efforts in the region, we can now move forward with the first utility-scale solar plant in west Africa,” Scatec Solar CEO Raymond Carlsen said.
“The Malian authorities have demonstrated decisive will to tackle the nagging issue of power supply.”
Scatec will own 50% of the Segou plant while the World Bank’s International Finance Corporation will hold 32.5 percent, leaving the remaining equity to local partner Africa Power 1.
The project is to be funded by a combination of traditional bank borrowing, a loan from the World Bank’s Investment Climate Fund and equity contributed by the partners.
http://mgafrica.com/article/2015-07...strial-scale-solar-plant#.VZ_pncWv5EQ.twitter
non ownership is disgusting to me. they gotta borrow 60 mil wtf really?
Thats how the real world works.
They all fall down: Perfect storm sends African currencies crashing (THE CHARTS THAT TELL IT ALL)
10 JUL 2015 16:35FRED OJAMBO, BLOOMBERG, CHRISTINE MUNGAI
A Somali money changer with a stack of Somali shillings in Bakara Market, Mogadishu. Similar piles of cash are popping in many African countries where currencies have taken a tumble. (Photo by Tyler Hicks/Liaison).
SEVERAL African currencies are on a downward spiral over the past few weeks and months, weakening precipitously against the US dollar as the international markets remain fragile and oil prices hover in the sub-$60 zone.
Between June and December 2014, global crude prices fell by more than 45%, and Africa’s oil exporters such as Nigeria, Angola and Gabon immediately felt the squeeze on their current accounts.
The low prices were expected to be a boon for oil importers, which the majority of African countries are. Instead, a perfect storm of factors - including a stock market crash in China, the European Union in knots over Greece, and a spate of summer terror attacks - has central banks all over Africa are in a flurry to shore up their rapidly depreciating currencies.
“Many sub-Saharan economies are paying a heavy price for not having implemented tighter fiscal and monetary policies when market conditions were favourable,” Nicholas Spiro, MD of Spiro Sovereign Strategy in London told Bloomberg a fortnight ago.
“It’s one thing for vulnerable sub-Saharan economies to hike [interest] rates. It’s another to restore financial stability at a time when market sentiment remains fragile, oil prices have fallen sharply and the [U.S.] Federal Reserve is preparing to hike rates.”
One of the worst-performing recently is the Ugandan shilling, which has dropped 21% over the past year, prompting the country’s Monetary Policy Committee (MPC) to meet one month earlier than expected after the shilling fell to another record low this week, before making a modest recovery after a Central Bank intervention.
The Bank of Uganda sold an unspecified amount of dollars in the foreign-exchange market Thursday to stabilise the currency and said it would meet on July 13 to “assess the current state of the economy and respond appropriately,” according to a statement e-mailed from the capital, Kampala.
The MPC, which usually meets every two months, raised its key rate by 100 basis points to 13% at its last meeting in June, citing accelerating inflation.
Neighbouring Kenya’s central bank has increased the benchmark interest rate by 150 basis points; the shilling has dropped about 10% against the dollar this year and breached 100 on Monday for the first time in more than three and a half years as a collapse in tourism and falling tea output reduces revenue from the nation’s two biggest foreign-currency earners.
Ghana’s cedi has tumbled 26% this year against the dollar, but with the release of the International Monetary Fund’s bailout funds - the rescue package is worth nearly $1 billion - the recovery has been considerable. The cedi has recouped almost all of its losses this year.
“We will not be complacent about the currency’s gains,” Minister of Finance Seth Terkper said. “We are also encouraging more flows and managing the reserves.”
Nigeria’s naira plunged dramatically between October and February, when crude prices were in free-fall. But authorities were able to arrest the decline, and although the Naira is exchanging for 20% more than it did last year, it has remained fairly stable for the past four months.
Angola’s kwanza has dropped 14% in the past year, battered by the fall in crude. But the country’s central bank said it would not defend the kwanza “at all costs” and it does not expect abrupt movements in the currency despite lower oil prices sapping U.S. dollar supply.
Angola is Africa’s second-largest crude producer and President Jose Eduardo dos Santos asked China for a two-year moratorium on debt repayments, state media reported last month, to shore up public finances.
The Tanzania shilling, too, has taken a tumble, dropping 25% in the first half of the year to a historic low, the second worst performing currency in Africa after the Ugandan shilling. To stabilise the shilling, the Bank of Tanzania pumped some $410 million into the market in the first five months of this year.
South Africa’s rand is similarly on the downward trend, shedding 7.2% of its value this year. Authorities are looking nervously at China’s stock market volatility, which may serious risks to the South African economy, more than the jitters in Europe.
“Unlike Greece, China is a very important country directly to South Africa,” Peter Worthington, an economist at Barclays Africa Group Ltd.’s investment banking division, told reporters in Johannesburg on Thursday. “It’s the main market for export of iron ore, it’s also a key source for global demand of commodities generally, so a very important underpinning for commodity prices.”
Some African governments have to shoulder part of the blame for the deterioration in their currencies, said Razia Khan, head of Africa macroeconomic research at Standard Chartered in London. “There has been a material deterioration in fiscal policy across a number of countries,” she said.
But the monetary policy measures to defend sliding currencies may only work in the short term.
“The model of increasing interest rates to strengthen your exchange rate can only take you so far,” Antoon de Klerk, a fund manager at Investec Asset Management told Bloomberg a fortnight ago.
“If you continue importing and people see your exchange rate depreciate from year to year, as happened in Ghana, then it does not matter if you pay 9%, 10% or 11% for money, it’s simply not enough to attract capital.”
Several other African countries may also have to raise rates as concerns over a depreciating currency and deteriorating inflation outlook outweigh those about growth. Top of the list are Mozambique, where the new metical has dropped 15% this year against the dollar, and Zambia, which has seen a 14% decline in the value of its kwacha.
“Longer term, a stable macroeconomic backdrop is the best guarantee of future growth,” said Ms Khan.
http://mgafrica.com/article/2015-07...ican-currencies-tumbling#.VaErAHwJ-Ig.twitter
10 JUL 2015 16:35FRED OJAMBO, BLOOMBERG, CHRISTINE MUNGAI
A Somali money changer with a stack of Somali shillings in Bakara Market, Mogadishu. Similar piles of cash are popping in many African countries where currencies have taken a tumble. (Photo by Tyler Hicks/Liaison).
SEVERAL African currencies are on a downward spiral over the past few weeks and months, weakening precipitously against the US dollar as the international markets remain fragile and oil prices hover in the sub-$60 zone.
Between June and December 2014, global crude prices fell by more than 45%, and Africa’s oil exporters such as Nigeria, Angola and Gabon immediately felt the squeeze on their current accounts.
The low prices were expected to be a boon for oil importers, which the majority of African countries are. Instead, a perfect storm of factors - including a stock market crash in China, the European Union in knots over Greece, and a spate of summer terror attacks - has central banks all over Africa are in a flurry to shore up their rapidly depreciating currencies.
“Many sub-Saharan economies are paying a heavy price for not having implemented tighter fiscal and monetary policies when market conditions were favourable,” Nicholas Spiro, MD of Spiro Sovereign Strategy in London told Bloomberg a fortnight ago.
“It’s one thing for vulnerable sub-Saharan economies to hike [interest] rates. It’s another to restore financial stability at a time when market sentiment remains fragile, oil prices have fallen sharply and the [U.S.] Federal Reserve is preparing to hike rates.”
One of the worst-performing recently is the Ugandan shilling, which has dropped 21% over the past year, prompting the country’s Monetary Policy Committee (MPC) to meet one month earlier than expected after the shilling fell to another record low this week, before making a modest recovery after a Central Bank intervention.
The Bank of Uganda sold an unspecified amount of dollars in the foreign-exchange market Thursday to stabilise the currency and said it would meet on July 13 to “assess the current state of the economy and respond appropriately,” according to a statement e-mailed from the capital, Kampala.
The MPC, which usually meets every two months, raised its key rate by 100 basis points to 13% at its last meeting in June, citing accelerating inflation.
Neighbouring Kenya’s central bank has increased the benchmark interest rate by 150 basis points; the shilling has dropped about 10% against the dollar this year and breached 100 on Monday for the first time in more than three and a half years as a collapse in tourism and falling tea output reduces revenue from the nation’s two biggest foreign-currency earners.
Ghana’s cedi has tumbled 26% this year against the dollar, but with the release of the International Monetary Fund’s bailout funds - the rescue package is worth nearly $1 billion - the recovery has been considerable. The cedi has recouped almost all of its losses this year.
“We will not be complacent about the currency’s gains,” Minister of Finance Seth Terkper said. “We are also encouraging more flows and managing the reserves.”
Nigeria’s naira plunged dramatically between October and February, when crude prices were in free-fall. But authorities were able to arrest the decline, and although the Naira is exchanging for 20% more than it did last year, it has remained fairly stable for the past four months.
Angola’s kwanza has dropped 14% in the past year, battered by the fall in crude. But the country’s central bank said it would not defend the kwanza “at all costs” and it does not expect abrupt movements in the currency despite lower oil prices sapping U.S. dollar supply.
Angola is Africa’s second-largest crude producer and President Jose Eduardo dos Santos asked China for a two-year moratorium on debt repayments, state media reported last month, to shore up public finances.
The Tanzania shilling, too, has taken a tumble, dropping 25% in the first half of the year to a historic low, the second worst performing currency in Africa after the Ugandan shilling. To stabilise the shilling, the Bank of Tanzania pumped some $410 million into the market in the first five months of this year.
South Africa’s rand is similarly on the downward trend, shedding 7.2% of its value this year. Authorities are looking nervously at China’s stock market volatility, which may serious risks to the South African economy, more than the jitters in Europe.
“Unlike Greece, China is a very important country directly to South Africa,” Peter Worthington, an economist at Barclays Africa Group Ltd.’s investment banking division, told reporters in Johannesburg on Thursday. “It’s the main market for export of iron ore, it’s also a key source for global demand of commodities generally, so a very important underpinning for commodity prices.”
Some African governments have to shoulder part of the blame for the deterioration in their currencies, said Razia Khan, head of Africa macroeconomic research at Standard Chartered in London. “There has been a material deterioration in fiscal policy across a number of countries,” she said.
But the monetary policy measures to defend sliding currencies may only work in the short term.
“The model of increasing interest rates to strengthen your exchange rate can only take you so far,” Antoon de Klerk, a fund manager at Investec Asset Management told Bloomberg a fortnight ago.
“If you continue importing and people see your exchange rate depreciate from year to year, as happened in Ghana, then it does not matter if you pay 9%, 10% or 11% for money, it’s simply not enough to attract capital.”
Several other African countries may also have to raise rates as concerns over a depreciating currency and deteriorating inflation outlook outweigh those about growth. Top of the list are Mozambique, where the new metical has dropped 15% this year against the dollar, and Zambia, which has seen a 14% decline in the value of its kwacha.
“Longer term, a stable macroeconomic backdrop is the best guarantee of future growth,” said Ms Khan.
http://mgafrica.com/article/2015-07...ican-currencies-tumbling#.VaErAHwJ-Ig.twitter