Why asia and africa ?

The asian and african outlook

Asian Development Outlook

Based on the Asian Development Outlook (ADO) 2021 Supplement – Recovery Continues (https://www.adb.org/publications/ado-supplement-december-2021) highlights can be summarized as follows:

• Growth forecasts for developing Asia are downgraded to 5.3% in 2022 as the emergence of Omikron variant and a rise in infections globally indicates that the pandemic is far from over.
• East Asia’s growth forecasts are revised down PRC now expected to grow more slowly, by 5.3% in 2022.
• The growth forecast for South Asia is maintained at 7%. India’s projection remains unchanged at 7.5% for 2022.
• After growth in Southeast Asia decelerated in the third quarter 2021, but revised up to 5.1% for 2022.
• Central Asia’s growth prospects are substantially upgraded to 4.4% for 2022.
• Regional inflation remains manageable, with the inflation forecast unchanged at 2.7% for 2022.

Why investing into African Economies?

According to the EIU article “Africa: what to watch in 2022” Africa has largely emerged from recession in 2021, and the recovery looks set to accelerate in 2022. A wide range of factors will drive the region forwards next year. Below are a few of the major trends, issues and events likely to shape the trade and investment landscape across Sub Saharan Africa in 2022.

• The lingering effects of the Covid‑19 pandemic and risks associated with future waves of infection, especially given the low vaccination rates across much of the region. Business continuity, investment and revenue-generation prospects could be impaired by successive waves of infection and the ebb and flow of containment measures, including prolonged international travel restrictions.
• Travel and tourism could bounce back in 2022 but only in parts of the continent where vaccination rates are highest.
• The commodities boom is likely extended into 2022 and provide another year of strong performance by African commodity producers and traders: bodes well for corporate revenue and share prices among African energy, metals, materials and food producers.
• The digital transformation of African goods and services markets and supply chains will continue to unfold in 2022, and the region will adopt new technologies, although infrastructure investment coupled with education and training are crucial to leverage the digital revolution.
• Exchange-rate pressures and external debt repayment issues likely to come to a head in 2022 for some states, which will raise more calls for true debt restructuring rather than debt-service deferrals.
• The Sahel region is facing a seemingly unresolvable crisis, with militias controlling or presenting a dangerous shadow presence across rural areas. The conflict in Ethiopia will present a major source of instability across the wider Horn of Africa.