Economic Snapshot for Sub-Saharan Africa
November 18, 2020
The region to suffer its worst contraction on record this year
The region will likely suffer its worst contraction on record this year as the Covid-19 pandemic ravages activity. Languishing demand from key trading partners; steep declines in prices for commodities like oil, minerals and metals; and drastic containment measures domestically will pummel economies. Rising public debt burdens and limited fiscal space cloud the outlook further.
Sub-Saharan Africa Monetary & Financial Sector News
Regional inflation edged up to 15.2% in May (April: 15.0%). Rising food inflation in Angola, Ghana and Nigeria in large part drove the acceleration, while inflation keeps soaring in the triple digits in Zimbabwe. Ahead, inflation in Sub-Saharan Africa is set to remain elevated and above 2019, fueled by weaker currencies and supply disruptions induced by the pandemic.
While the central banks of Botswana and Kenya stood pat in recent weeks, the monetary authorities of Mozambique and, most notably, Nigeria, lowered their benchmark rates. Nigeria’s move surprised market analysts amid the risk of fueling already-elevated inflation. As a whole, policymakers are broadly expected to stay put ahead.
Currency performance across Sub-Saharan Africa was mixed recently. Most notably, the Angolan kwanza’s slide against the USD shows no signs of abating, while the South African rand continued to recoup some of the heavy losses it has taken since the outset of 2020. This year, the majority of currencies in the region are projected to depreciate more sharply than in 2019.
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5 years of Sub-Saharan Africa economic forecasts for more than 30 economic indicators.
Sub-Saharan Africa Economic News
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Kenya: PMI falls to near one-year low in April with business conditions deteriorating sharply
May 5, 2021
The Purchasing Managers’ Index (PMI)—produced by IHS Markit and Stanbic Kenya Bank—dropped to an 11-month low of 41.5 in April, from March’s 50.6.
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Nigeria: PMI stable in April
May 4, 2021
Business conditions in Nigeria’s private sector economy continued to improve at the outset of the second quarter, with the Stanbic IBTC Bank Nigeria Purchasing Managers’ Index (PMI) coming in at 52.9 in April, matching March’s print.
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Kenya: Inflation slides in April
April 30, 2021
Consumer prices increased a seasonally-adjusted 0.82% over the previous month in April, accelerating from the 0.40% rise logged in March.
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Angola: Activity falls at softer rate in the fourth quarter of 2020
April 23, 2021
The economy remained in a challenging position in the final quarter of last year, with GDP falling 5.4% year-on-year amid the lingering impact of the pandemic.
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South Africa: Inflation increases in March
April 21, 2021
Consumer prices increased 0.68% over the previous month in March, mirroring February's reading.
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