A poor growth and worsening external environment contributed to a deceleration in 2015 and growth... more A poor growth and worsening external environment contributed to a deceleration in 2015 and growth is projected to remain at 1.5 percent in 2016. The gross domestic product (GDP) growth rate slowed from 3.8 percent in 2014 to 1.5 percent in 2015 and 2016, due largely to the impact of an ongoing drought, which is taking a heavy toll on agriculture production. The depreciation of the South African rand against the United States (U.S.) dollar has weakened Zimbabwe’s competitiveness vis-a-vis its main trading partner. Exchange-rate dynamics are having an especially negative impact on the mining and manufacturing sectors, which already face considerable challenges in attracting investment. Weather-related shocks to the agricultural sector have had an especially negative impact on the poor. Over 90 percent of Zimbabwe’s extremely poor live in rural areas. Of these households, the overwhelming majority depend directly or indirectly on agriculture. The drop in agricultural output in 2015 is ...
Africa is rich in natural resources. The region boasts of over 10% of world reserves of oil, abou... more Africa is rich in natural resources. The region boasts of over 10% of world reserves of oil, about 40% of gold, 90% of chromium and the platinum group of minerals, extensive fisheries, forests, as well as vast tourism resources which can support economic development. Evidence on the role of natural resources in fostering sustainable development is mixed: While some resource-rich countries have succeeded, some have not yielded the full benefits of natural resources. In the case of Africa, benefits from natural resources have remained rather below potential, with resource-rich countries failing to sustain strong growth rates for longer durations. This has raised some questions about the prospects of Africa’s development paradigm in light of its resource abundance. What needs to be done to maximize the benefits of natural resources for sustainable economic development? This chapter analyzes the potential role of natural resources in fostering economic development in Africa. We argue th...
Most emerging market economies which have implemented in‡ation targeting since the 1990s have con... more Most emerging market economies which have implemented in‡ation targeting since the 1990s have continued to experience large, frequent and sometimes persistent in‡ation target misses. On the other hand most of these countries had reformed and improved their institutional structures when implementing in‡ation targeting. This questions the signi…cance of institutional structures for the success of in‡ation targeting. This paper studies the role of central bank independence, …scal discipline and …nancial sector development for the achievement of in‡ation targets in emerging market economies. It analyses the extent to which in‡ation deviations from the target bands can be attributed to institutional dynamics using the panel ordered logit model. The empirical results indicate that improvement in central bank independence, …scal discipline and …nancial systems reduces the probability of in‡ation target misses and therefore contributes to the success and credibility of monetary policy. Thes...
Sovereign wealth funds (SWFs) are increasingly becoming major sources of finance in many African ... more Sovereign wealth funds (SWFs) are increasingly becoming major sources of finance in many African countries. This paper analyses the potential role that SWFs could play in financing infrastructure development in Africa. The paper documents the state of infrastructure and its financing needs in Africa, dissects the anatomy of sovereign wealth funds on the continent, and assesses the extent to which sovereign wealth funds can bridge the infrastructure financing gap. The analysis shows that Africa?s infrastructure needs new sources of finance to cover the existing financing requirements. Although African SWFs are still small compared to those in other countries of the world, they have the potential to contribute meaningfully towards financing infrastructure development and fostering economic development in Africa. Putting in place favorable conditions for business and ensuring stable political and governance conditions can also attract global sovereign wealth funds to invest their massi...
A poor growth and worsening external environment contributed to a deceleration in 2015 and growth... more A poor growth and worsening external environment contributed to a deceleration in 2015 and growth is projected to remain at 1.5 percent in 2016. The gross domestic product (GDP) growth rate slowed from 3.8 percent in 2014 to 1.5 percent in 2015 and 2016, due largely to the impact of an ongoing drought, which is taking a heavy toll on agriculture production. The depreciation of the South African rand against the United States (U.S.) dollar has weakened Zimbabwe’s competitiveness vis-a-vis its main trading partner. Exchange-rate dynamics are having an especially negative impact on the mining and manufacturing sectors, which already face considerable challenges in attracting investment. Weather-related shocks to the agricultural sector have had an especially negative impact on the poor. Over 90 percent of Zimbabwe’s extremely poor live in rural areas. Of these households, the overwhelming majority depend directly or indirectly on agriculture. The drop in agricultural output in 2015 is ...
Africa is rich in natural resources. The region boasts of over 10% of world reserves of oil, abou... more Africa is rich in natural resources. The region boasts of over 10% of world reserves of oil, about 40% of gold, 90% of chromium and the platinum group of minerals, extensive fisheries, forests, as well as vast tourism resources which can support economic development. Evidence on the role of natural resources in fostering sustainable development is mixed: While some resource-rich countries have succeeded, some have not yielded the full benefits of natural resources. In the case of Africa, benefits from natural resources have remained rather below potential, with resource-rich countries failing to sustain strong growth rates for longer durations. This has raised some questions about the prospects of Africa’s development paradigm in light of its resource abundance. What needs to be done to maximize the benefits of natural resources for sustainable economic development? This chapter analyzes the potential role of natural resources in fostering economic development in Africa. We argue th...
Most emerging market economies which have implemented in‡ation targeting since the 1990s have con... more Most emerging market economies which have implemented in‡ation targeting since the 1990s have continued to experience large, frequent and sometimes persistent in‡ation target misses. On the other hand most of these countries had reformed and improved their institutional structures when implementing in‡ation targeting. This questions the signi…cance of institutional structures for the success of in‡ation targeting. This paper studies the role of central bank independence, …scal discipline and …nancial sector development for the achievement of in‡ation targets in emerging market economies. It analyses the extent to which in‡ation deviations from the target bands can be attributed to institutional dynamics using the panel ordered logit model. The empirical results indicate that improvement in central bank independence, …scal discipline and …nancial systems reduces the probability of in‡ation target misses and therefore contributes to the success and credibility of monetary policy. Thes...
Sovereign wealth funds (SWFs) are increasingly becoming major sources of finance in many African ... more Sovereign wealth funds (SWFs) are increasingly becoming major sources of finance in many African countries. This paper analyses the potential role that SWFs could play in financing infrastructure development in Africa. The paper documents the state of infrastructure and its financing needs in Africa, dissects the anatomy of sovereign wealth funds on the continent, and assesses the extent to which sovereign wealth funds can bridge the infrastructure financing gap. The analysis shows that Africa?s infrastructure needs new sources of finance to cover the existing financing requirements. Although African SWFs are still small compared to those in other countries of the world, they have the potential to contribute meaningfully towards financing infrastructure development and fostering economic development in Africa. Putting in place favorable conditions for business and ensuring stable political and governance conditions can also attract global sovereign wealth funds to invest their massi...
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