Continued disinflation alongside an improved external environment mean that the 75bp interest rate cut delivered by Kenya’s central bank is likely to be followed up by further monetary loosening over the coming months. Similar trends are likely in South Africa and Ghana. Meanwhile, South Africa’s economy is also likely to get a boost from major visa reforms, which should help firms to fill long-standing skills gaps. But deeper structural and economic reforms will be needed to lower the high unemployment rate and significantly boost long-term growth.
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