Tag Archives: S/Africa

South Africa Overtakes Nigeria As Africa’s Biggest Economy

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In dollar terms, South Africa is once again the biggest economy on the African continent, a position it reclaimed from Nigeria.

This was attributed to the appreciation of the rand, South Africa’s currency, and the devaluation of the Nigerian naira following the introduction of a flexible foreign exchange regime.

Using the Gross Domestic Product (GDP) at the end of 2015 published by the International Monetary Fund, Bloomberg reported that the size of South Africa’s economy was $301 billion at the rand’s current exchange rate, while Nigeria’s GDP was put at $296 billion.

Bloomberg noted that the rand has gained more than 16 per cent against the US currency since the start of 2016, while in contrast, Nigeria’s naira has lost more than a third of its value.

In afternoon trade wednesday, the rand firmed by more than a per cent against the dollar, to R13.29.

Despite the switch, Nigeria and South Africa both face the risk of recession, having contracted in the first quarter of the year, according to Bloomberg.

Nigeria’s economy shrank by 0.4 per cent, while South Africa’s GDP contracted by 0.2 per cent.
Nigeria has suffered amid low oil prices, while South Africa is sensitive to shifts in the commodity cycle.

“More than the growth outlook, in the short term the ranking of these economies is likely to be determined by exchange rate movements,” an economist at Exotix Partners LLP, Alan Cameron said.

He said although Nigeria was unlikely to be unseated as Africa’s largest economy in the long run, “the momentum that took it there in the first place is now long gone”.

Also, the Head of Research, SCM Capital Limited, Mr. Sewa Wusu, told THISDAY that the challenge of naira devaluation has caused a lot of economic challenges to the country, particularly with respect to the GDP.

“This should give policy makers the drive to rectify the forex challenges. Of course they have done their best by introducing a flexible exchange rate, but the issue is beyond that. The issue currently is about our forex earning potential.

“But I think the government is up to the challenge. I think we need a quick fix on the economy. That would help to support the naira and strengthen the currency,” Wusu added.

Read More: thisdaylive

Nigerian Victim Of S’Africa Xenophobia Seeks Compensation

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Mr. Chika Emehelu, a 36-year-old Nigerian businessman in South Africa, yesterday appealed to the federal government to persuade the South African government to pay him compensation for the losses he incurred during the wave of xenophobic attacks in the country in 2013.
Emehelu, a native of Udi in Enugu State, told the News Agency of Nigeria (NAN) in Johannesburg that he lost more than R800,000 (N12 million) in the May 2013 xenophobic attacks in that country.
The businessman, who is married to a South African and has three children, said his three shops at Portnolloth, a community in Northern Cape Province of South Africa, were looted during the attack.
Emehelu also said local authorities in the province came and took an inventory of the items stolen and destroyed, promising to pay him compensation.
He however said nothing had been done since then, adding that his family members were going through hard times.
Emehelu also said he had submitted all relevant documents to the South African authorities after the incident, adding that he was running a duly registered business outfit.
He also said officers from the Nigerian Mission in South Africa had visited his shops to take inventory.
Emehelu appealed to the federal government to remind the South African government to pay compensation to Nigerians who suffered losses during the xenophobic attacks.
“As I speak, I lost everything to the mob attack and I need government’s assistance to revive my business,” he said.
Mr. Ikechukwu Anyene, President of Nigeria Union in South Africa, said the body had compiled a list of Nigerians affected in the attacks and submitted it to the federal government through Nigeria’s consul general in the country.
Credit: Thisday

Xenophobic: SA Introduces Tough New Visa Regulations

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South Africa on Monday rolled out tough new visa regulations requiring children travelling into the country to carry unabridged birth certificates, a move that industry experts predict will badly damage the tourism sector. The revised regulations dictate that children of all nationals and foreigners must be accompanied by unabridged birth certificates in addition to their passports when entering or leaving the country.

The new regulations apply only to children travelling with one parent and those arriving from visa-exempt countries.  Government says the measure is aimed at curbing international child trafficking.

But the tourism industry, which contributes nine percent to the country’s GDP and employs around 1.5 million people, said the regulations were too cumbersome and would drive tourists away from South Africa.

The chamber of commerce said airlines were “doing all they can” to prepare travellers “but their efforts have been frustrated by bureaucratic bungling.” Citing official ticketing data, the Southern African Tourism Services Association (SATSA) said flight bookings to South Africa this June plunged 20 percent compared to the same period last year, a fall blamed partially on the new rules.

“Who is going to go to all this trouble to come on holiday to South Africa?” asked David Frost, the head of SATSA. “They would rather say let’s go to New Zealand, Mauritius or Puerto Rico, where they are more welcome.” Home Affairs spokesman Mayihlome Tshwete said the legislation had come into effect without major problems.

“For the most part it’s going well, we haven’t had any issues out of the ordinary,” Tswete said. The tourism industry is considering taking legal action against government for loss of business. “We have been forced into a corner and we are large sector and we will not sit quietly in a corner and watch our industry being destroyed by heavy handed bureaucrats.”

Credit: AFP