The Stears Weekly Macroeconomic Report highlights the macroeconomic trends and policy shifts shaping the African investment landscape, helping you make informed decisions in dynamic markets.
Country Updates
Cameroon
- Foreign Exchange: The Central African CFA Franc (XAF) ended January with a 0.6% w/w depreciation to FCFA633.2/$, snapping its two consecutive weekly gains. The XAF lost momentum as the Euro weakened following the European Central Bank’s (ECB) rate cut, coupled with weaker-than-expected manufacturing output, stubborn inflation and an uncertain economic outlook. The ECB reduced its key interest rates by 0.25 percentage points, making the Euro less attractive to investors compared to the US dollar. Concerns about a wider eurozone-US interest rate gap, combined with US President Donald Trump’s tariff threats towards the EU, are likely to exert additional pressure on the XAF in the near term.
- IMF Funding: The IMF has completed a staff-level review of Cameroon’s $837 million Extended Credit Facility (ECF) and Extended
