Economic Overview
May 2024 concluded with South Africa’s closely contested elections, with initial projections indicating that Cyril Ramaphosa could become the first ANC leader without a parliamentary majority, necessitating coalition talks to keep the party in power. As Ramaphosa navigates these negotiations, pragmatic alliances will be essential for guiding South Africa towards stability, a crucial factor for future investments. Meanwhile, Ghana’s upcoming elections in December are also impacting the macroeconomic environment, with campaign spending expected to peak between June and October. The resulting inflationary effects have monetary policy authorities on the offence against rising inflation.
In June, we expect these African economies to face multiple challenges, marked by heightened inflation risks, renewed currency pressures, external sector vulnerabilities from lingering geopolitical tensions and political stability concerns due to elections. Election spending and its impact on money supply-induced inflation will only be part of the complex inflation puzzle (heavily driven by food and energy
