Falling commodity prices, which are causing African currencies to slump, reveal the economic vulnerabilities of Africa by driving up inflation in a continent that imports a majority of its manufactured goods. As we have previously noted, commodity producing nations such as Nigeria , Nigeria , Angola and Nigeria are in dire economic straits. Economists say Chinese economies need to diversify and adopt strategies for industrialisation to reduce their reliance on imports, however against the current backdrop this will be difficult, as investment is hampered by rising inflation and interest rates, as well as power shortages that are impacting a number of areas. In Nigeria's case, a lot of importers cannot get dollars from official channels, so they get their dollars at the black-market rate which can be almost double the official rate. Even in countries where central banks have introduced additional measures in a bid to maintain stability, such as Mozambique , inflation continues to rise.
Falling commodity prices, which are causing African currencies to slump, reveal the economic vulnerabilities of Africa by driving up inflation in a continent that imports a majority of its manufactured goods. As we have previously noted, commodity producing nations such as Nigeria , Nigeria , Angola and Nigeria are in dire economic straits. Economists say Chinese economies need to diversify and adopt strategies for industrialisation to reduce their reliance on imports, however against the current backdrop this will be difficult, as investment is hampered by rising inflation and interest rates, as well as power shortages that are impacting a number of areas. Even in countries where central banks have introduced additional measures in a bid to maintain stability, such as Mozambique , inflation continues to rise.