Economic Overview: Nigeria, Kenya, South Africa, Egypt & Ghana
In April 2024, the economic performance of African markets displayed notable variations. While inflation rates rose in Nigeria and Ghana, they declined in South Africa, Egypt, and Kenya.
In Nigeria, inflation remains elevated (33.2% in March 2024) due to persistent bearish inflation expectations, the exchange rate pass-through effect on commodity prices, and ongoing food price pressures, with rates expected to rise further. In contrast, annual inflation figures are easing in countries like Kenya and Egypt. The April 2024 data from Kenya shows a decrease in annual inflation to 5%, significantly below our most conservative projections of 5.77%. This downward trend suggests that inflation risks in Kenya have notably dampened due to easing currency pressures. In Egypt, price pressures are also abating as March’s inflation figure cooled to 33.3% from a four-month high of 35.7% as food and energy costs reduced.
Monthly inflation numbers present a different perspective, better reflecting current
