Africa Economics Update South Africa: trade deficit to keep pressure on the rand South Africa’s trade deficit was wider than expected in August, as the ongoing weakness of the rand led to a surge in the local-currency cost of oil imports. In turn, a widening trade deficit could... 30th September 2013 · 1 min read
Africa Economics Update Nigerian interest rates to stay on hold for prolonged period The weakness of the naira and concerns over loose fiscal policy meant the Central Bank of Nigeria (CBN) kept interest rates on hold at 12.00% today, despite inflation remaining comfortably below... 24th September 2013 · 1 min read
Africa Economics Update African markets rally as Fed delays tapering The surprise decision by the US Fed to delay the tapering of its asset purchases this month has provided a temporary reprieve for emerging market assets, including those in Africa. In light of this... 23rd September 2013 · 1 min read
Africa Economics Update South Africa: rates on hold despite Fed surprise The South African Reserve Bank (SARB) left rates on hold today and gave no indication that any change was likely in the foreseeable future. Growth remains below trend, but policymakers expect... 19th September 2013 · 1 min read
Africa Economics Update Ghana: twin deficits to keep monetary policy tight A failure to sufficiently rein in large budget and current account deficits means that further monetary tightening is still likely in Ghana, despite the Central Bank’s decision to keep interest rates... 18th September 2013 · 1 min read
Africa Economics Update Rise in capital spending takes edge off deficit concerns An increase in capital expenditure across the region over the past few years means that the general widening in budget deficits may not be as worrying as the headline figures suggest. But there are... 17th September 2013 · 1 min read
Africa Economics Update Fed tapering unlikely to put region’s external positions at risk The turbulence in financial markets over the past few months has raised concerns about how emerging markets will perform as global monetary conditions tighten. In the case of Africa, current account... 13th September 2013 · 1 min read
Africa Economics Update External financing risks persist in South Africa South Africa’s current account deficit widened in Q2, and the shortfall continues to be funded in largepart by short-term capital inflows. As a result, the economy remains among the most vulnerable to... 10th September 2013 · 1 min read
Africa Economics Update Subsidy reform key to sustaining fiscal discipline The widening of fiscal deficits in several economies in sub-Saharan Africa over the past few years has increased the importance of subsidy reform. The good news is that policymakers are starting to... 9th September 2013 · 1 min read
Africa Economics Update Next move in Kenyan interest rates likely to be up African currencies have come under renewed pressure in August, with the South African rand and the Ghanaian cedi suffering more than most. But while currencies have weakened, local equity markets have... 3rd September 2013 · 1 min read
Africa Economics Update South African manufacturing recovery gathers steam The South African manufacturing PMI rose to a six-year high in August, indicating a further uptick in overall GDP growth in Q3. But relatively high wage increases agreed in the past month or so are... 2nd September 2013 · 1 min read
Africa Economics Update Currencies still under pressure African currencies have come under renewed pressure in August, with the South African rand and the Ghanaian cedi suffering more than most. But while currencies have weakened, local equity markets have... 30th August 2013 · 1 min read
Africa Economics Update South Africa: pick-up in Q2 GDP masks underlying weakness After growing at its slowest quarterly pace in almost four years in Q1, it was always likely that South African GDP would accelerate in Q2. Nevertheless, the pick-up in growth shouldn’t detract from... 27th August 2013 · 1 min read
Africa Economics Update South Africa: currency slump is a double-edged sword The renewed slump in the rand has once again cast a spotlight on some of South Africa’s economic vulnerabilities. But while it is likely to put the balance of payments position under pressure and keep... 21st August 2013 · 1 min read
Africa Economics Update Weak rand to push South African inflation higher South African inflation breached the upper bound of the SARB’s target range in July, and the effects of a weak rand means it is likely to accelerate a little further in the coming months. This will... 21st August 2013 · 1 min read
Africa Economics Update South Africa: how is the wage negotiation season progressing? Agreements have now been reached in more than half of the sectors holding talks during South Africa’s current wage negotiation season. However, a lack of agreement in the mining sector means the risk... 15th August 2013 · 1 min read
