African press review 5 September 2018

Business Day reports on South Africa’s grim economic prospects after the investment bank Goldman Sachs revised the GDP forecast from 2 percent down to 0.8 percent for 2018.

The reports states that the economy contracted by 0.7 percent in the second quarter, indicating that South Africa was now in recession.

Business Day also carries a piece on why South African president Cyril Ramaphosa should panic about the economy right now.

The article lists factors such as recession, the falling of the rand and the rising crude oil prices that have affected the country's economy.

Kenya's The Daily Nation reports on the high court declining to suspend the new 16 percent tax on petroleum products that came into effect last weekend.

It states that the court declined to suspend the tax despite arguments that the tax defied the intentions of the country's Parliament as lawmakers had voted to suspend it until September 2020.

The paper also reports on governors of different provinces calling for a review of this tax. They warned that the implementation of the tax could renew demands for higher pay by workers which in turn would adversely affect the country’s development plans.

The New Times in Rwanda reports on President Paul Kagame backing the Africa-China development framework announced on Monday by Chinese President Xi Jinping.

Kagame, who chairs the African Union said that the summit’s declaration provide an ideal roadmap for the way forward.

Under the agreement, China will extend 51.6 billion euros of financing to Africa in the form of government assistance as well as investment and financing.