The economy, the challenge of Kaïs Saïed’s second term [Business Africa]

As President Kaïs Saïed begins his second term, the Tunisian economy continues to face major challenges.

Inflation, the depreciation of the dinar, and the burden of debt are all elements that negatively impact the country’s economic situation.

The GDP growth rate has reached only 1% in the second quarter of 2024, while unemployment stands at around 16%.

Despite signs of improvement, such as the inflation rate falling to 6.7%, the majority of Tunisians are still feeling the effects of a sluggish economy.

The country faces deep structural problems. Public debt has exploded, reaching 71% of GDP, mainly due to a development model focused on public investments.

Basic services such as water and electricity are often inadequate and food shortages are common.

The economic crisis has a direct impact on the daily lives of Tunisians. Supermarket shelves are often empty and power cuts are a daily reality.

Dependence on foreign aid and tourism revenues has also limited the country’s ability to recover independently.

Encouraging domestic savings and supporting entrepreneurship will be essential steps in building a sustainable economic future.

Rwanda: Economic Ambitions and Development Challenges

Rwanda continues to surprise with its economic resilience. The country’s real GDP grew by a whopping 9.7% in the first quarter of 2024, surpassing the 8.2% growth recorded the previous year.

This impressive performance, despite a global economic slowdown, is explained by strong consumption in key sectors such as services and industry.

The industrial sector particularly shone, posting growth of 10%. Manufacturing and construction recorded increases of 11% and 12% respectively, while the information and communication technology sector experienced an explosion with an exceptional growth of 35%.

Despite these positive developments, Rwanda faces ongoing challenges, including inflation and an insufficiently trained workforce.

Only 2.8 million people employed full-time out of 8.1 million of working age.

To maximize the potential of its young population, Rwanda must focus its efforts on skills development.

A recent $200 million project aims to provide opportunities for 200,000 vulnerable young people to acquire skills needed in the marketplace.

With these new measures, Rwanda aspires to become a middle-income country by 2035 and a high-income country by 2050.

Fishing in Africa: challenges and prospects

The fisheries sector is crucial to the continent, with a vast maritime territory spanning 13 million square kilometres. The sector employs more than 12 million people and provides food security for more than 200 million Africans.

In Africa, 22% of animal protein comes from seafood, and in some West African countries this figure exceeds 50%.

Yet per capita fish consumption is alarming, at less than 10 kg per year, and only 5 kg in East Africa.

Illegal fishing and overexploitation of stocks deprive local communities of essential protein and income, benefiting food systems in Europe and Asia.

Faced with threats to maritime and continental resources, countries such as Morocco have already implemented rigorous legislation that regulates fishing techniques, imposes seasons and limits the intensity of industrial fishing.

Increasingly, so-called “second generation” fishing agreements are emerging, such as the one signed between Senegal and the European Union in 2019, which allows European fishermen to take a quota of 10,000 tonnes per year.

Artisanal fishing, which reaches 66% on the continent and more than 80% in the least developed countries, is an asset of African countries in the face of sustainable development challenges.

Greater political support for this sector and the definition of a sustainable strategy for inland fisheries and aquaculture on the continent could have significant repercussions on the food security of African populations.