Africa Economics Update South Africa finally begins tightening cycle The South African Reserve Bank (SARB) hiked its key interest rate from 5.75% to 6.00% today, judging that the threat of elevated inflation outweighed the risk of choking off already weak growth. The... 23rd July 2015 · 1 min read
Africa Economics Update Ghana: Not out of the woods yet The rapid appreciation of the cedi over the past month is a positive sign, but it should not be taken to mean that Ghana has successfully resolved its economic problems. The country’s economy remains... 20th July 2015 · 1 min read
Africa Economics Update South Africa: Last growth engine spluttering Today’s retail sales figures confirm that consumer spending growth in South Africa is faltering, weakening the one sector that has propped up growth so far in 2015. This supports our below-consensus... 15th July 2015 · 1 min read
Africa Economics Update Uganda: Weak shilling prompts rate hike Today’s decision to hike interest rates by 150bp reflects the Bank of Uganda’s concerns about currency weakness. But with export prices subdued and political risk rising, we expect that the shilling... 13th July 2015 · 1 min read
Africa Economics Update Kenya: Long-term outlook still positive Kenya has been in the headlines for all the wrongreasons over the past few months, and its economy is struggling. But while the country faces realproblems, we still believe that the economy holds... 13th July 2015 · 1 min read
Africa Economics Update Kenya: Another rate hike to shore up shilling The surprise move by Kenya’s Monetary Policy Committee to hike its key interest rate by 150bp today, for the second consecutive meeting, was a signal that the new Governor is serious about curbing... 7th July 2015 · 1 min read
Africa Economics Update South Africa: Faltering consumer will drag on growth The dramatic fall in South Africa’s consumer confidence index in Q2 provides yet another sign that consumer spending growth will slow over the course of the year. This is a particularly worrying... 2nd July 2015 · 1 min read
Africa Economics Update Domestic factors dominate African markets This month has seen most key African currencies depreciate and key equityindices fall. But while Europe’s latest crisis may have had some marginal effect oninvestor risk sentiment, the key drivers of... 30th June 2015 · 1 min read
Africa Economics Update South Africa dodges power price hike, but crisis will linger South Africa’s energy regulator has rejected a proposed hike to electricity prices, sparing South Africa’s overstretched consumers the pain of higher prices. But the decision will only exacerbate the... 29th June 2015 · 1 min read
Africa Economics Update South Africa: Tackling unemployment requires structural reform South Africa’s official unemployment rate hit a ten year high of 26.4% in Q1 2015, hammering home the scale of the country’s jobs challenge. Indeed unemployment in the country is more widespread than... 25th June 2015 · 1 min read
Africa Economics Update Nigeria: Further FX restrictions a worrying sign The Central Bank of Nigeria’s decision to further tighten restrictions on foreign exchange market will not succeed in reducing demand for dollars. Faced with weak export earnings and tumbling FX... 24th June 2015 · 1 min read
Africa Economics Update Rising inflation, stronger output suggest rate hike in South Africa Figures released today showed that South Africa’s retail sector has remained surprisingly resilient in the face of power shortages, and rising inflation. A string of relatively strong growth figures... 17th June 2015 · 1 min read
Africa Economics Update Nigeria: Cabinet delay raises policy-making concerns President Muhammadu Buhari’s long delay in appointing a new federal cabinet is detracting from his reputation as a decisive reformer and may be a sign of deep divisions within the ruling power. The... 16th June 2015 · 1 min read
Africa Economics Update East African budgets boost investment, keep fiscal deficits wide East African governments’ focus on infrastructure spending will provide a boost for growth, but fiscal deficits in Kenya and Uganda are likely to remain a concern. Revenue projections rely on... 12th June 2015 · 1 min read
Africa Economics Update Africa: Trade agreement promising, but no immediate impact Media coverage of Africa’s “Tripartite Free Trade Agreement” has exaggerated the pact’s effect on economic integration, which will be limited by piecemeal implementation and crumbling infrastructure... 10th June 2015 · 1 min read
Africa Economics Update Kenya hikes rates to shore up shilling Kenya’s Monetary Policy Committee hiked its key interest rate by 150bps today, a clear attempt to signal that the bank is serious about curbing high inflation and protecting the rapidly-depreciating... 9th June 2015 · 1 min read
