http://www.theeastafrican.co.ke/business/Aid-to-Africa-projected-to-fall-during-Trump-presidency-/2560-3490178-toe4hi/index.html
Aid to Africa projected to fall during Trump’s presidency
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Report by chartered accountants says US likely to cut spending by
reining in development aid. FOTOSEARCH
By JAMES ANYANZWA
Posted Sunday, December 18 2016 at 12:47
In Summary
Trump presidency raises the risk of the US rolling back development
aid, thus affecting dependent countries such as Kenya, Tanzania,
Ethiopia, Nigeria and the Democratic Republic of Congo, says report.
According to the report, and drawing on insights from the Organisation
for Economic Co-operation and Development (OECD), the US is
sub-Saharan Africa’s major donor in bilateral official aid, with over
$9 billion distributed to the region to date.
Kenya and Tanzania are among African countries likely to face a drop
in foreign aid as the new US administration cuts spending to create
room for increased infrastructure expenditure, according to a new
report.
The report by the Institute of Chartered Accountants in England and
Wales (ICAEW) says the Trump presidency raises the risk of the US
rolling back development aid, thus affecting dependent countries such
as Kenya, Tanzania, Ethiopia, Nigeria and the Democratic Republic of
Congo.
The accountancy and finance body said that signs of an expansionary
fiscal stance under the Trump administration, coupled with spending
cuts to build dollar reserves for infrastructure development, are
likely to lead to a decrease in aid to African countries.
“Aid is probably the main channel through which a change in US policy
under a new president could impact Africa,” states the fourth quarter
(2016) report commissioned by ICAEW and produced by partner and
forecaster Oxford Economics.
“Policymakers and businesses across the continent will be keen to see
President-elect Trump’s plans for development policies once he takes
office,” the report adds.
Donald Trump is expected to be formally inaugurated as the country’s
45th president on January 20, 2017.
According to the report, and drawing on insights from the Organisation
for Economic Co-operation and Development (OECD), the US is
sub-Saharan Africa’s major donor in bilateral official aid, with over
$9 billion distributed to the region to date.
It is followed by the United Kingdom, with just under $4 billion
distributed, and France with just over $2 billion.
In terms of official development aid receipts in East Africa, Ethiopia
received the largest amount at over $3.5 billion, followed by Kenya
and Tanzania with over $2.5 billion each, and Uganda with over $1.5
billion.
Doing business
According to the report, the change in the US administration will also
affect Africa’s trade and investment prospects. It states that steady
progress is being made in the continent’s business environment, with
Mauritius ranked 49th out of 190 countries globally in terms of the
ease of doing business.
The World Bank’s Doing Business 2017 report ranked Rwanda at position
56h, Morocco 68th, Botswana 71st and South Africa 74th. Oil giants
Nigeria and Angola were ranked 169 and 182 respectively. According to
the report, foreign direct investment inflows into Africa fell by 7
per cent to $54 billion in 2015, with decreasing flows to SSA
offsetting larger inflows into North Africa.
Received on Sun Dec 18 2016 - 10:44:17 EST