New government needs to reign in expenditure

AMA October 3, 2017 MASAHUDU ANKIILU

The leaders who take office in Kenya after the October 26 presidential poll will need to reign in expenditure to improve the economy’s prospects according to ICAEW’s (the Institute of Chartered Accountants in England and Wales) latest report. In Economic Insight: Africa Q3 2017 launched today, the accountancy and finance body states that currently, the budget deficit as a proportion of GDP is forecast to widen again from this year before it narrows, mostly thanks to economic growth.

Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia

Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia

NAIROBI, Kenya, 3 October 2017, -/African Media Agency (AMA)/- The report, commissioned by ICAEW and produced by partner and forecaster Oxford Economics, provides a snapshot of the region’s economic performance. The report focusses specifically on Kenya, Tanzania, Ethiopia, Nigeria, Ghana, Ivory Coast, South Africa and Angola. 

 
According to the report, the new government will need to take a number of steps to revive the economy following the October 26th vote. A start would be to rethink the regulatory cap on commercial interest rates, which has starved small and medium enterprises of funding. Reining in expenditure, in order to ensure government debt does not get out of hand, would improve the economy’s future prospects. Furthermore, the newly elected government will need to lead the charge against corruption. 
 
Voter turnout is likely to be higher than on August 8 as supporters from both Jubilee and the National Super Alliance (NASA) endeavour to cement their candidate as the legitimate winner. Should Mr Raila Odinga come to power, policy making and implementation will be affected by the fact that the Jubilee party has majorities in both the National Assembly and Senate and will more than likely use their advantage to stifle any policies that run contrary to their own goals.  
 
Michael Armstrong, Regional Director, ICAEW Middle East, Africa and South Asia said: “Although the opposition party succeeded at the Supreme Court leading to the nullification of the August 8 result, they still have a challenging time ahead. Should they succeed in the upcoming poll, the National Super Alliance will have challenges in implementing their manifesto due to the majority Jubilee holds in Parliament.” 
 
Looking at the rest of the region, Rwanda’s President Kagame’s re-election is expected to result in the continuation of business-friendly policies while the operating environment in Tanzania is becoming increasingly complicated due to President Magafuli’s economic nationalism. Ethiopia’s real GDP growth is forecast to come in at an impressive rate of 7.1% despite the risk of social unrest that may be disrupting the state led development that has produced the country’s economic boom in the past.  
 
The full Economic Insight: Africa report can be found here: http://www.icaew.com/en/technical/economy/economic-insight/economic-insight-africa

Distributed by African Media Agency (AMA) on behalf of ICAEW.

Media enquiries:
Jamie Douglass, ICAEW press office, +44 (0)20 7920 8718 or email James.Douglass@icaew.com 

Corazon Sefu Wandimi, Tell-Em Public Relations East Africa, +254 20 260 9990 or email Corazon.Sefu@tell-em-pr.com 

Notes to editors:

About ICAEW
1. ICAEW is a world leading professional membership organisation that promotes, develops and supports over 144,000 chartered accountants worldwide. We provide qualifications and professional development, share our knowledge, insight and technical expertise, and protect the quality and integrity of the accountancy and finance profession.

As leaders in accountancy, finance and business our members have the knowledge, skills and commitment to maintain the highest professional standards and integrity. Together we contribute to the success of individuals, organisations, communities and economies around the world.

Because of us, people can do business with confidence.

2. ICAEW is a founder member of Chartered Accountants Worldwide and the Global Accounting Alliance.

About Oxford Economics
Oxford Economics is one of the world’s foremost advisory firms, providing analysis on 200 countries, 100 industries and 3,000 cities. Their analytical tools provide an unparalleled ability to forecast economic trends and their economic, social and business impact. Headquartered in Oxford, England, with regional centres in London, New York, and Singapore and offices around the world, they employ one of the world’s largest teams of macroeconomists and thought leadership specialists.

Source: African Media Agency

Sharing

Tags

Related posts

Leave a Reply

*