Economy Archives - Afrikan Excellence https://afrikanexcellence.thelovetablet.com/category/economy/ All Matters Afrikan Excellence Thu, 27 Apr 2023 06:22:41 +0000 en-US hourly 1 https://wordpress.org/?v=6.5 214450912 Appreciating Africa’s Informal Sector: Which Way Forward? https://afrikanexcellence.thelovetablet.com/2023/04/27/appreciating-africas-informal-sector-which-way-forward/?utm_source=rss&utm_medium=rss&utm_campaign=appreciating-africas-informal-sector-which-way-forward https://afrikanexcellence.thelovetablet.com/2023/04/27/appreciating-africas-informal-sector-which-way-forward/#respond Thu, 27 Apr 2023 06:22:39 +0000 https://afrikanexcellence.thelovetablet.com/?p=574 The informal sector generally contributes a huge percentage of Africa’s GDP but typically faces many challenges such as:
1. Non-inclusion of financial services.
2. Lack of secure income and struggle to secure...
How Might African Economies Promote The Informal Sector?

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The informal economy makes up a momentous magnitude of the global economy. The sector generally contributes a huge percentage of Africa’s GDP.

Photo by Tejj on Unsplash

Microscopic attention has been paid to the role of the informal sector in furthering growth- even though it is a huge opportunity for reasonable income generation for many people.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/26/why-african-investors-must-master-the-gdp-simplified/

Informal businesses typically face many challenges:

  1. Non-inclusion of financial services and access to credit for useful investments.
  2. Lack of secure income including employment benefits and collective protection.
  3. Informal businesses struggle to secure access to traditional banking services.

How Might African Economies Promote The Informal Sector?

  1. Aptly address the risks associated with financing informal businesses. African governments should intend to allow better access to financing, and foster the availability of information on the sector.
  2. Facilitation of access to formal financing channels in boosting informal businesses could be, among other things, a way to incentivize them to embrace formality.
  3. Policy makers could work with the informal sector and embrace access to information and generation of knowledge on the sector.
  4. Competency development may be crucial for lenders such as banks and other financial institutions to better manage risks associated with lending to informal businesses.
  5. Kenya has done a commendable job at accommodating medical coverage through NHIF, a proposal by Kenya’s National Health Insurance Fund Amendment Bill 2021 that has helped guarantee a comprehensive health coverage. The bill makes it mandatory for all Kenyans 18 years or older to have NHIF membership either through employment or by voluntary nature for the self-employed.
  6. Seize and leverage available opportunities in digitization and partnerships through digital technologies that may reduce risks, increase transparency, and lower costs. Strategic partnerships can be low-hanging fruit for financing to informal businesses.
  7. Innovative financing mechanisms have seen a rise across Africa by leveraging technology. Kenya is for example leveraging and thriving on innovative ideas like the use of mobile payment platforms, legalizing chamas (self-help groups) and partnerships with microfinance institutions to tap into the informal sector.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/10/mwai-kibaki-the-president-who-grew-the-kenyan-economy-5-times-larger/

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African Female Presidents Who Kicked Butt To Sit At The Top https://afrikanexcellence.thelovetablet.com/2023/03/30/african-female-presidents-who-kicked-butt-to-sit-at-the-top/?utm_source=rss&utm_medium=rss&utm_campaign=african-female-presidents-who-kicked-butt-to-sit-at-the-top https://afrikanexcellence.thelovetablet.com/2023/03/30/african-female-presidents-who-kicked-butt-to-sit-at-the-top/#respond Thu, 30 Mar 2023 05:34:27 +0000 https://afrikanexcellence.thelovetablet.com/?p=534 If you have been blessed to be in the company of a wise woman, you’ll agree with me that it is as super fulfilling as…

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If you have been blessed to be in the company of a wise woman, you’ll agree with me that it is as super fulfilling as the famous Kenyan masala chai, aromatic Kenyan kahawa or that strong addictive Ethiopian coffee.

After all, Proverbs 8 did tell us that counsel, sound judgement and insight are powerful tools to be used by kings and leaders to govern and rule.

Today we’re looking at 7 female African leaders that have led massive economies. These African female Heads of States are among many, known and unknown, remembered and forgotten, who came before them. I mean, we’ve all heard of fearless African warriors who led their communities valiantly.

Read More: https://afrikanexcellence.thelovetablet.com/2017/08/07/lived-in-the-streets-but-it-did-not-break-me-it-made-me-fearless-jackie-bomboma/

  1. Sahle-Work Zewde, President of Ethiopia

Sahle-Work Zewde is known to many as a well-seasoned diplomat. She took the presidential office in 2018 after being unanimously elected by members of the National Parliamentary Assembly.

Prior to assuming her President role, she served as an ambassador for Ethiopia in Senegal, Djibouti and France. She worked as Special Representative and Head of the United Nations Integrated Peacebuilding Office in the Central African Republic (BINUCA).

She was also the Director-General for African Affairs in the Ministry of Foreign Affairs of Ethiopia. In 2011, Zewde was appointed to the position of Director-General of the United Nations Office at Nairobi (UNON) by the United Nations Secretary-General Ban Ki-moon. President Sahle-Work Zewde also served as the UN representative at the African Union.

Read More: https://afrikanexcellence.thelovetablet.com/2023/02/16/the-7-pillars-of-good-governanceleadership/

  1. Prime Minister Rose Christiane Ossouka Raponda, Gabon

Rose Christiane Ossouka Raponda, the Prime Minister of Gabon was born in 1964 in Libreville. She is an economist by training. Don’t you love economists? I adore them. These breed can accelerate GDP rates like the Kenyan athletes do the marathons if they want to.

She received a degree in economics and public finance from the Gabonese Institute of Economy and Finance. She has served Gabon for decades.

Raponda has worked as Director General of the Economy and Deputy Director General in the Housing Bank of Gabon, as Budget Minister and was the elected Mayor of the capital city Libreville representing the ruling Gabonese Democratic Party.

She also became President of United Cities and Local Governments Africa and played a vital role in Africa’s peace and security. Talking about an African warrior, Raponda also served as her country’s Defense Minister.

  1. Prime Minister Dogbé Tomegah, Togo

Victoire Sidémého Dzidudu Dogbé Tomegah, the Prime Minister of Togo is a respected and experienced politician. Prior to her position, she worked at the United Nations Development Programme and also served as the Cabinet Director to the President of Togo.

Tomegah Dogbé was also the Minister of Grassroots Development, Youth Craft and Youth Employment.

  1. President Ellen Johnson Sirleaf, Liberia

Ellen Johnson Sirleaf is a Liberian politician who served as the 24th President of Liberia from 2006 to 2018. She studied at Madison Business College and Harvard University.

She was the Deputy Minister of Finance, worked for the World Bank in the Caribbean and Latin America and worked for Citibank and then the Equator Bank. Ellen Johnson Sirleaf won the 2005 presidential election and was re-elected in 2011. She won the Nobel Peace Prize in 2011, in recognition of her efforts to bring women into the peacekeeping process. She has received numerous other awards for her leadership.

Is it just me or does she eminate a Wangari Maathai vibe?

  1. Samia Suluhu Hassan

She is the current Tanzanian president after assuming office upon the death of president John Pombe Magufuli in 2020.

She previously served as the Vice president of Tanzania, the Member of Parliament for Makunduchi and was the Minister of State in the Vice-President’s Office for Union Affairs. She also served as a minister in the semi-autonomous region of Zanzibar during President Amani Karume’s administration.

Read More: https://afrikanexcellence.thelovetablet.com/2016/04/30/i-might-be-small-but-mighty-defines-my-dedication-to-mama-africa-roman-girma-teshome/

  1. Joyce Hilda Banda, President of Malawi (2012-2014)

Joyce Hilda Banda served as the President of Malawi from 2012 to 2014 after taking over the office following the sudden death of President Bingu wa Mutharika.

Before becoming the President of Malawi, she served as the Member of the Parliament, Minister of Gender and Child Welfare and as a foreign Minister. In 2014, Forbes named her as the 40th powerful woman in the world and the most powerful woman in Africa.

  1. Ameenah Gurib-Fakim, President of Mauritius (2015 – 2018)

Ameenah Gurib-Fakim, a biodiversity scientist served as the President of Mauritius from 2015-2018. She opened her own science center known as CIDP Research & Innovation where she is the Managing Director.

There are many other indomitable and fearless female African leaders who are daringly transforming their respective African countries. The contribution of women to what Africa is today is unquestionable.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/19/self-management-8-different-aspects-by-the-experts/

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Agri-Tech| Africa’s Diesel For Growth https://afrikanexcellence.thelovetablet.com/2023/03/09/agri-tech-africas-diesel-for-growth/?utm_source=rss&utm_medium=rss&utm_campaign=agri-tech-africas-diesel-for-growth https://afrikanexcellence.thelovetablet.com/2023/03/09/agri-tech-africas-diesel-for-growth/#respond Thu, 09 Mar 2023 09:44:31 +0000 https://afrikanexcellence.thelovetablet.com/?p=540 Traditional Agriculture is proving to be small potatoes compared to Agri-tech innovations.

Young Agri-techies are using creative immersive media like artificial intelligence, drones, remote sensing, virtual reality...

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Traditional Agriculture is proving to be small potatoes compared to Agri-tech innovations. Agricultural techniques in Africa catalyze momentous growth events across the entire agricultural ecosystem.

Photo by Gabriel Jimenez on Unsplash

Youth commitment to Agri-Tech has led in development of useful agri-tech tools and services for smallholder farmers in horticulture, agriculture, forestry, viticulture and aquaculture in the continent. Talk of betting on the jockey and not on the horse!

Read More: https://afrikanexcellence.thelovetablet.com/2023/02/09/5-reasons-farmers-must-bring-back-the-golden-kienyeji-avocado-of-old/

The youth are using creative immersive media such as artificial intelligence, drones, remote sensing, virtual reality, application programming interfaces and other technological methods to promote productivity and return on investments. Fascinating. Well, didn’t someone say, Try not. Do. Or do not. There is no try.

Africa has a burgeoning agri-tech arena. According to Disrupt Africa, a startup funding data website, ‘‘…the African tech startup ecosystem trebled over the course of a record-breaking 2021 that saw total funding pass the US$2 billion mark for the first time.’’ Sings that song, money, money, money- Money!

Higher yields and higher productivity for farmers through automation and mechanization has become the vision for the young agri-techies. Ultimately, African countries are becoming triumphant economies fabricated on its most important industry, agriculture. Kienyeji vegetables and kuku, anyone?

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/09/does-devolution-accelerate-economic-growth/

How might Agri-Tech raise the economies of Africa?

  • Africa has a young tech savvy population aged under 35 years who are interested in getting into agriculture.
  • African governments must intend to facilitate young people to have access to agri-tech tools to transform food production.
  • African economies must provide readily accessible financing and training to young people and easy access to agri-tech tools—like drone technologies, digitized farming experiences and rigor soil sensors.

Fundamentally, innovation is key to making agriculture productive and a viable sustainable model in the motherland.

The youth have proven to grasp and adore the much needed innovation that will help turn all these global technologies into impact on the ground.

Good luck Agri-techies out there- we adore safe home grown foods, don’t you? Make us proud.

Read more: https://afrikanexcellence.thelovetablet.com/2023/01/19/self-management-8-different-aspects-by-the-experts/

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Top 5 African Countries Where Gold Shines https://afrikanexcellence.thelovetablet.com/2023/03/02/top-5-african-countries-where-gold-shines/?utm_source=rss&utm_medium=rss&utm_campaign=top-5-african-countries-where-gold-shines https://afrikanexcellence.thelovetablet.com/2023/03/02/top-5-african-countries-where-gold-shines/#respond Thu, 02 Mar 2023 05:24:56 +0000 https://afrikanexcellence.thelovetablet.com/?p=541 Africa’s gold mining industry has seen a shift in the recent years with countries such as Ghana, Sudan, Mali, and Burkina Faso entering the fray...

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At the mention of gold, every person sits upright for in it lies great wealth. I mean, show me a man that can resist the attraction of gold and I’ll take you to Jupiter in a ship.

Photo by Jingming Pan on Unsplash

The first encounter of gold in the Bible is in Genesis 2:12 where God had placed it in the East of the Garden of Eden in a land called Havilah. God in his own words said, ‘’The gold of that land is good; aromatic resin and onyx are also there.’’

Africa’s gold mining industry has seen a shift in the recent years with countries such as Ghana, Sudan, Mali, and Burkina Faso entering the fray.

Read More:https://afrikanexcellence.thelovetablet.com/2023/02/16/the-7-pillars-of-good-governanceleadership/

Top five gold mining countries of Africa

  1. Ghana

The citizenry of Ghana are favored people, they get to enjoy pure shea butter and at the same time bath in loads of gold. Ghana seems to grab the top spot from South Africa after mining more than 142 metric tonnes of the precious metal in 2019. Ghana’s minerals account for over 30% of the country’s total exports, with gold comprising 90% of total mineral exports.

  1. South Africa (Mzansi)

While I have been dancing vigorously for years trying to perfect my South African warrior dance move, I was not aware that South Africa is also estimated to possess at least 6,000 metric tonnes of gold reserves (second-largest in the world). This is according to 2018 Mining Global data. That for years, Mzansi has carried Africa on its back when it comes to the precious metal.

  1. Sudan

If you do not know the history of Sudan and its treasures, then you need to read a few books and maybe visit. The North-East African country of Sudan comes third in this list with gold production of more than 120-200 tonnes per annum.

  1. Mali

Apart from the famous Timbuktu, the well-poised, beautiful women and the tall masculine men, this North-West African country of Mali produces more than 60 metric tonnes of gold per annum. Mali is estimated to have at least 800 metric tonnes of gold reserves, according to Norwegian website Eiti.org.

5. Burkina Faso

I know Burkina Faso as a leader in African art and culture, and as a host of the largest craft market in Africa. I was excited to learn that this beauty has one of the most dynamic mining sectors in West Africa along other major resources like copper, zinc, limestone, manganese and phosphate. Burkina Faso’s gold reserves are estimated to be at least 154 metric tonnes, according to Eiti.org.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/12/the-bottom-up-economic-model-how-does-it-compare-to-the-top-down-economic-model/

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/10/7-riveting-aspects-of-the-maasai-culture/

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Africa’s Creative Economy Is Apt To Fattening Your Pockets https://afrikanexcellence.thelovetablet.com/2023/02/23/africas-creative-economy-is-apt-to-fattening-your-pockets/?utm_source=rss&utm_medium=rss&utm_campaign=africas-creative-economy-is-apt-to-fattening-your-pockets https://afrikanexcellence.thelovetablet.com/2023/02/23/africas-creative-economy-is-apt-to-fattening-your-pockets/#respond Thu, 23 Feb 2023 04:28:47 +0000 https://afrikanexcellence.thelovetablet.com/?p=533 Mama Africa is not only blessed with minerals and insurmountable commodities, but she is rich in talent and creativity.

The creative economy will most definitely rapidly boost economies and...

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I adore creativity, don’t you? I mean, who doesn’t. Expressiveness dates back to aeons ago- I think from beginning of time.

Photo by TheRegisti on Unsplash

Well, just look at stories that took time thousands of years ago like that time David and all the house of Israel were celebrating before the LORD, with songs and lyres and harps and tambourines and castanets and cymbals.’  (2 Samuel 6:5) or when Miriam the prophetess took a tambourine in her hand, and all the women went out after her with tambourines and dancing.’ (Exodus 15:20) or maybe even when David innocently played the lyre to calm jealous Saul’s demon infested mind?

Ever heard of the saying, we are creators just as God created us? Anyway, you get the drift.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/10/7-breathtaking-truths-about-kenyas-landscape/

Mama Africa is not only blessed with minerals and insurmountable commodities, but she is rich in talent and creativity. It is key to note that most countries in our continent lack the framework and proficiency to beneficiate this pool of artistry into viable innovations.

Having made this observation, we have noteworthy exceptions with Nigeria, Northern Africa and South Africa film industries being the most outstanding.

Nollywood, the film industry in Nigeria is ranked as the 2nd largest movie industry in the world after Hollywood based on the number of annual films produced and jobs created. This Nigerian giant creative economy boasts of being the second-largest employer in Nigeria. This reminds me how most of us learned our Nigerian accents from Afro Cinema.

According to Business Insider Africa in a study released in 2021, the Nigerian creative industry employs 4.2 million people across various sectors, Media and Entertainment, Beauty and Lifestyle, Visual Arts, as well as Tourism and Hospitality.

There’s hope because in recent times, there has been much talk about the potential of the creative and cultural industries in contribution to Africa’s economic growth. We are witnesses to governments, local and international organizations and corporate institutions finding creative ways to work with creatives.

The creative economy will most definitely rapidly boost economies and drive inclusive socio-economic development in Africa. According to EY, 2015, this industry has a significant contribution of three percent of the global gross domestic product (GDP). This highlights the economic potential of creative industries as a source of growth and job creation in Africa.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/26/why-african-investors-must-master-the-gdp-simplified/

This poses the one million dollar question, how might other African countries learn and tap into the creative economy? Well, they MUST put into consideration investing in cultural industries, which, according to UNCTAD, are composed of the following 9 sectors

  • Traditional cultural expressions- Arts and crafts, festivals and celebrations.
  • Cultural sites- Archaeological sites, museums, libraries, exhibitions, etc.
  • Visual arts- Paintings, sculptures, photography and antiques.
  • Publishing and printed media- Books, press and other publications.
  • Design- Interior, graphic, fashion, jewellery and toys.
  • Performing arts- Music, theater, dance, opera, circus, puppetry, etc.
  • Audio-visual- Film, television, radio and other broadcasting
  • New/Modern media- Software, video games, digitized creative content
  • Creative services- Architectural, advertising, creative R & D, cultural and recreational activities.

Read More: https://afrikanexcellence.thelovetablet.com/2017/09/22/being-deaf-did-not-cut-off-any-of-my-dreams-yakwaya-fred/

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The 7 Pillars of Good Governance|Leadership https://afrikanexcellence.thelovetablet.com/2023/02/16/the-7-pillars-of-good-governanceleadership/?utm_source=rss&utm_medium=rss&utm_campaign=the-7-pillars-of-good-governanceleadership https://afrikanexcellence.thelovetablet.com/2023/02/16/the-7-pillars-of-good-governanceleadership/#comments Thu, 16 Feb 2023 05:23:05 +0000 https://afrikanexcellence.thelovetablet.com/?p=526 Good governance ensures government policies are implemented, leaders flow with the times through openness to change, citizenry are always informed...

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For the citizenry, good governance is like a good road trip: a way to spend time with your leaders, sometimes annoy each other yet know that the road often leads to beautiful destinations and interesting new places for growth.

Photo by Jason Goodman on Unsplash

Good governance ensures government policies are implemented through planning, organizing, directing, coordinating, and controlling operations.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/19/self-management-8-different-aspects-by-the-experts/

Top 7 Pillars of Good Governance

  1. Leaders must be open and transparent: They need accountability in government activities through ethical decision-making, equal representation and responsibility.
  2. The citizenry must always be informed through a conducive environment and adequate public involvement.
  3. The Rule of Law must be obeyed: Representation, participation and adherence of the rule of law is and should be non-negotiable.
  4. Leaders must be responsive through efficiency and effectiveness to deter corruptible and unethical behavior in governance.
  5. Leaders must embrace and perform their set obligations and responsibilities that promote integrity and public interest, advance justice, and seek growth.
  6. Leaders must be competent and have capacity in representation of the people’s will. Without people, the government has no power.
  7. Leaders must flow with the times through innovation and openness to change.


Read More: https://afrikanexcellence.thelovetablet.com/2023/02/02/7-skills-on-how-to-resolve-conflict-5-on-how-not-to/

It is fundamental for leaders to adopt good governance practices in order to preserve and strengthen the citizenry’s confidence and to provide the foundation for a high-performing administration.

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5 Reasons Farmers Must Bring Back The Golden Kienyeji Avocado Of Old https://afrikanexcellence.thelovetablet.com/2023/02/09/5-reasons-farmers-must-bring-back-the-golden-kienyeji-avocado-of-old/?utm_source=rss&utm_medium=rss&utm_campaign=5-reasons-farmers-must-bring-back-the-golden-kienyeji-avocado-of-old https://afrikanexcellence.thelovetablet.com/2023/02/09/5-reasons-farmers-must-bring-back-the-golden-kienyeji-avocado-of-old/#comments Thu, 09 Feb 2023 05:35:53 +0000 https://afrikanexcellence.thelovetablet.com/?p=518 Before I get the side eye from those of you who abhor the avocado, please remember junk is in the eyes of the beholder- some look, but the GOLDEN kienyeji avocado of old lovers see, value...

#BringBackTheGoldenKienyejiAvocadoOfOld

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The kienyeji avocado of old just like potential never has a retirement plan. Africa is home to over 50% of the world’s arable land with Agriculture being a pillar of its economy. Kenya now leads as Africa’s largest producer of avocados exporting about 80,000 tonnes. This begs my question, who is cloning and replacing my favorite fruit-The kienyeji avocado of old?

The avocado has always been venerated by many households in Africa. My high school biology teacher used to assert that to get that potassium, those juicy monounsaturated fats, high sources of fiber, folate and vitamins for days, we need to munch those kienyeji avocados daily.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/10/7-riveting-aspects-of-the-maasai-culture/

Eating avocados in some Kenyan settings is still considered a hobby and a party activity. I remember the good old days where we would sprinkle some salt on that fatty avocado, put it in our githeri, blend and mask our faces as we watched Poppy and Simba the dogs fight for their share.

Before I get the side eye from those of you who abhor the avocado, please remember junk is in the eyes of the beholder- some look, but the kienyeji avocado of old lovers see and enjoy.

But just what is happening to the kienyeji avocado of old? I am forced to invest a lot of time just looking for them. All I find is the modern lazy avocado. The kienyeji avocado of old has now become a diamond. I kid you not. We must search and tramp long distances looking for it! This, I fume, is not acceptable.

The kienyeji avocado of old Vs the modern lazy avocado

The kienyeji Avocado of old is naturally fatty and nutritious as is its wild counterparts while the new lazy avocados that have flooded the market lack the natural fat.

The kienyeji Avocado of old has a seed that can be planted or crashed for medicinal powder. You never know with the new lazy avocados in the market- they are indecisive of their shape and form. Sometimes you get enormous seeds with 10 percent flesh, bitter flesh, rotten internally but green on the outside and so on and so forth.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/10/7-breathtaking-truths-about-kenyas-landscape/

The kienyeji Avocado of old are small or big and round, fibrous, large-curved, and capitulate nutrition in all its forms. That taste we all know and love. The new lazy avocados can’t decide if they’re humongous, hormonal, bitter or slender.

The kienyeji Avocado of old are free of pesticides and chemical additives.

The kienyeji Avocado of old are loved by dogs while dogs snobbishly sniff at the new lazy avocados, wag their tails in protest and go about their business.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/12/the-bottom-up-economic-model-how-does-it-compare-to-the-top-down-economic-model/

Dear farmers, it may cost you in terms time and resources. It may seem off putting cultivating the kienyeji Avocado of old but it’s the best long term investment you can make for both your health and ours, your descendants and the health of the planet. #BringBackTheKienyejiAvocadoOfOld

Read More: https://thelovetablet.com/2023/02/07/success-is-an-acquired-taste-of-faith-you-want-it-acquire-some-faith/

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Why African Investors Must Master The GDP- Simplified https://afrikanexcellence.thelovetablet.com/2023/01/26/why-african-investors-must-master-the-gdp-simplified/?utm_source=rss&utm_medium=rss&utm_campaign=why-african-investors-must-master-the-gdp-simplified https://afrikanexcellence.thelovetablet.com/2023/01/26/why-african-investors-must-master-the-gdp-simplified/#respond Thu, 26 Jan 2023 02:44:37 +0000 https://afrikanexcellence.thelovetablet.com/?p=502 Good ole top sirloin is to the body what the GDP is to a country.

Economists generally prefer using the Real GDP as a way to compare a country's economic growth rate...

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Good ole top sirloin steak is to the body what the GDP is to a country. African economies are beginning to recover from the impact of COVID-19 and have been bouncing back in full force growing their GDP since 2022.

Credit: Photo by Jason Leung on Unsplash

Gross Domestic Product (GDP) is the total goods and services produced by a country in a specific period of time. The measurement can be in say a quarter or a year.

Simply put, GDP is an economy doctor, critical like your dentist who loves to poke, drill and smoke out those nasty cavities. GDP measures the health of a country. A country with a high GDP is a good economy while a country with a low GDP is poor economy. Globally, the ideal GDP growth rate is between 2% and 3%.

The GDP can be expressed in two different ways:

  • Nominal GDP- takes current market prices into account without factoring in inflation or deflation.
  • The Real GDP-factors in inflation which means accounting for the overall rise in price levels.

Economists generally prefer using the Real GDP as a way to compare a country’s economic growth rate.

The components of GDP

  • Chop that money – Consumption by the citizens: If the citizenry have money to spend, then the economy is good.
  • Investments in new assets that will provide future benefits like increase in productive capacity and higher employment rates.
  • Give unto Caesar what belongs to Caesar. The Government’s consumption expenditure and gross investment on goods and services funded by taxes, companies or borrowed. To run at a surplus instead of a deficit, the government needs to collect more money than it spends.
  • Exports Vs Imports: Higher exports and Lower imports mean a surplus. Low exports vs High imports mean the country is running a trade deficit. For example, sharing the love with the world through exporting that Nigerian oil, South African diamonds, Congolese gold, Kenyan tea and our beautiful landscape with the world at a justified fee.

Related: https://afrikanexcellence.thelovetablet.com/2023/01/12/the-bottom-up-economic-model-how-does-it-compare-to-the-top-down-economic-model/

The Importance of the GDP

  • GDP is a critical measurement of an economy’s size, performance, and general health.
  • Investors are able to make key investment decisions by comparing the current GDP against past numbers. If the number is growing, then the economy has become more productive. If the number is shrinking, then the economy has become less productive.
  • New markets investments: If you’re looking to expand into new markets use GDP to evaluate which markets would prove healthiest and fattest.
  • Emerging Markets: Investors interested in emerging markets might use GDP to understand which countries are growing at the fastest rates and, therefore, might provide the greatest return on investment.
  • Policy Making: Politicians, policymakers or people in governance might use GDP to understand how policies have impacted the economy.
  • Economists can use GDP to determine whether an economy is growing or experiencing a recession.

Related: https://afrikanexcellence.thelovetablet.com/2023/01/10/mwai-kibaki-the-president-who-grew-the-kenyan-economy-5-times-larger/

Current Rays of Hope For Investors in Africa:

  • The free trade zone under the African Continental Free Trade Agreement ( AfCFTA) 2021. This may eventually result in a liberalized single market for goods and services, facilitated by the easy movement of people and capital.
  • Digital trading and Tech startup prospects: Increased fast-tracking of a lot of businesses. The role of tech in economic activities and the employment of labor cannot be overemphasized.
  • Domestic African tourism is forecast to pick up considerably in the next few years, after being particularly hard hit during COVID-19 pandemic.
  • Commodity-dependent economies such as Nigeria, for instance, which relies on oil, Angola, Zambia on copper, even Ghana on gold — are expected to help mitigate some of the current challenges and help increase economic recovery affected by COVID-19.

Read More: https://afrikanexcellence.thelovetablet.com/2023/01/09/does-devolution-accelerate-economic-growth/




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The Bottom-Up Economic Model| How Does It Compare to the Top-Down Economic Model? https://afrikanexcellence.thelovetablet.com/2023/01/12/the-bottom-up-economic-model-how-does-it-compare-to-the-top-down-economic-model/?utm_source=rss&utm_medium=rss&utm_campaign=the-bottom-up-economic-model-how-does-it-compare-to-the-top-down-economic-model https://afrikanexcellence.thelovetablet.com/2023/01/12/the-bottom-up-economic-model-how-does-it-compare-to-the-top-down-economic-model/#respond Thu, 12 Jan 2023 03:57:29 +0000 https://afrikanexcellence.thelovetablet.com/?p=131 Bottom-up and Top-down models are used in conjunction with one another by most economies though they are distinctly different.

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In Summary

  • A bottom-up model concentrates on distribution of wealth to the community and individuals.
  • Which one is better, the top-down model or bottom-up approach?
Photo by Mathieu Stern on Unsplash

His excellency, Kenya’s President Dr. William Ruto unveiled the bottom-up economic model also known locally as the “hustler economic model” as his manifesto during his campaigns in 2021. He said the bottom-up approach would promote investments made by ordinary Kenyan citizens- financially empowering them while spurring the Kenyan economy through tax generation.

Generally, the bottom-up economic model focuses on specific micro attributes of promoting financial investments and instruments that target unemployment, SMEs and entrepreneurs. The concentration being on business-by-business or sector-by-sector.

The Top-down economic model on the other hand is commonly associated with macroeconomics. The model looks at the biggest factors affecting the economy as a whole such as unemployment rates, global and a country’s GDP, and inflation rates. Decisions are made by looking at worldwide economics- then a country’s economy- then refinement of a specific sector- then to individual companies within that sector.

Bottom-up and Top-down models are used in conjunction with one another by most economies though they are distinctly different.

Characteristics Of A Bottom-Up Model

  1. A bottom-up approach starts by targeting a local sector or specific variables and then expanding outward.
  2. A bottom-up model is pro-productivity as opposed to consumptive dependency: The emphasis is on the economic activities of households and communities. People focused.
  3. Bottom-up is more focused on micro variables specifically on local communities: Economies are built around diverse local businesses and innovations.
  4. A bottom-up model concentrates on distribution of wealth and ownership capital for the local communities.
  5. Just like decentralization, the bottom-up model seeks to solve problems and build community wealth through the economy at a local level.
  6. The bottom-up model cultivates local innovation and social entrepreneurs who support the local and national economy.
  7. A bottom-up economic model aids in creating jobs through local solutions understood by the community.

What Is the Main Difference Between a Bottom-Up and Top-Down Approach?

  • A bottom-up approach identifies various companies and picks the ones with the best future prospects.
  • A top-down approach looks at the overall economy and invests in companies within the industries that affect the economy directly.
  • A bottom-up model concentrates on distribution of wealth and ownership capital to the local communities.
  • Due to its generalized nature, a top-down approach may overlook great opportunities by ignoring and eliminating local companies that have potential.

In conclusion, a bottom-up model begins at the micro level and then broadens out. A top-down analysis begins at the macro level and then homes in on a more local level. In the end, every approach has its own pros and cons.

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4 Common Barriers To Effective communication https://afrikanexcellence.thelovetablet.com/2023/01/10/4-common-barriers-to-effective-communication/?utm_source=rss&utm_medium=rss&utm_campaign=4-common-barriers-to-effective-communication https://afrikanexcellence.thelovetablet.com/2023/01/10/4-common-barriers-to-effective-communication/#comments Tue, 10 Jan 2023 02:55:27 +0000 https://afrikanexcellence.thelovetablet.com/?p=62 Effective communication is about understanding information, clearly conveying a message and making the other person feel heard and understood. The barriers...

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Want to communicate better? Barriers to effective communication can lead to misunderstandings, miscommunications and a decline in work and personal relationships.

Photo by krakenimages on Unsplash

Effective communication is about understanding information, clearly conveying a message and making the other person feel heard and understood.

Like the broken telephone game, effective communication should be instinctive but all too often, something goes astray. We say one thing, the other person hears something else, and conflicts ensue.

Common barriers to effective communication include:

  1. Lack of emotional intelligence: Stress misreads other people and sends off-putting non-verbal signals. It’s important to learn how to quickly calm down to avoid conflict before continuing a conversation.
  2. Lack of focus. Non-committment to the conversation will almost certain make you miss non-verbal cues. Staying focused is key.
  3. Inconsistent body language. Saying one thing while your body language says something else, makes the listener feel your dishonesty. For example, nodding “yes” while saying no.
  4. Negative body language. Sending negative signals such as raising one eyebrow, crossing arms and avoiding eye contact can rebuff the other person’s message and put them on the defensive.

Effective communication skills

  1. Consider your audience: This helps deliver the right messages effectively. Education, age, ethnicity, gender, income and professional experience can all impact how your message is received.
  2. Listen Actively: Effective communication requires active listening, understanding the information being communicated and considering the emotions the speaker is trying to convey.
  • I understand your problem.
  • I know how you feel about it.
  • I am interested in what you are saying.
  • I am not judging you.
  1. Establishing clear expectations is key whether your communication is through Whatsapp, an email or having a one-on-one conversation.
  2. Pay attention to nonverbal signals: Use of open body language such as maintaining eye contact, arms uncrossed or even standing with an open stance is key.
  3. Know your audience. Influencing strategies by tailoring for a particular person and considering their personality goes a long way. A rational party is more logical than emotional.
  4. Keep stress in check: High pressure situations require emotional intelligence, avoiding overreactions and thinking on your feet.
  5. Read the room. Watch your audience and adjust your message and style accordingly.
  6. Assertive expressions make for clear communication. When you’re assertive, you are open and honest and not aggressive or demanding.
  • Value yourself, your options and other people.
  • Respect and honor other people’s rights.
  • Negative thoughts can be expressed in a positive way.
  • It’s okay to say “no.”
  1. Take feedback seriously.
  2. Use the right medium or platform. Would Zoom, Whatsapp, one on one or an email suffice? Casual and formal communications call for different mediums. Whatever you choose should be appropriate for the situation.

    Benefits of effective communication

    • Managing and building teams.
    • Building strong relationships and improved social, emotional, and mental health.
    • Better problem–solving and conflict resolution skills.

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