Africa's Growth Paradox, Inflation Shocks, and Currency Floating | Dr. Chukwuka Onyekwena

Why do orthodox monetary policies often fall short in developing economies? In this episode of Beating Sisyphus, co-hosts Thomas Riveros and Lourdes Casanova (Director of the Cañizares Center for Emerging Markets) sit down with Dr. Chukwuka Onyekwena, Executive Director at the Centre for the Study of the Economies of Africa (CSEA).They dive into the structural drivers behind Sub-Saharan Africa’s growth puzzle, examining why the continent bypassed traditional manufacturing expansion directly into low-productivity services and informality. Dr. Onyekwena breaks down the mechanics of inflation in fragile states, explaining why aggressive interest rate hikes fail to curb supply-driven food and exchange rate shocks when monetary transmission channels are impaired by shallow financial markets and fiscal dominance. Finally, the discussion tackles the fallout of sudden currency devaluations, targeted social protection, and the macroeconomic outlook for Nigeria as it navigates structural reform.Timestamps⚬ 00:00 – Introduction: Dr. Chukwuka Onyekwena and CSEA⚬ 01:25 – Bridging Academia and Policy: The Mission of CSEA⚬ 04:02 – Africa’s Growth Puzzle: Demographics, De-Industrialization, and Productivity⚬ 09:14 – The Limits of Economic Orthodoxy: Food Shocks and Inflation Dynamics⚬ 15:31 – Monetary Transmission Channels and Weak Financial Plumbing⚬ 20:50 – Policy Priorities: Fiscal Dominance, Supply-Side Reforms, and Safety Nets⚬ 27:20 – Currency Devaluation Havoc vs. Structural Import Dependence⚬ 35:53 – Why Higher Interest Rates Coexist with High Inflation in Fragile States⚬ 40:43 – Spotlight on Nigeria: Macroeconomic Stabilization and Growth Trajectory⚬ 43:43 – Wrap-up and Concluding Thoughts