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
Central Africa
Foreign Exchange:
Last week, the Central African CFA franc (XAF) and the Congolese franc (CDF) appreciated, while the Angolan kwanza (AOA) remained stable. The XAF, used by six Central African nations, gained 0.8%, closing at FCFA570.6/$, supported by a stronger euro amid weak US economic data, trade uncertainties, and geopolitical tensions. Investor sentiment remained cautious amid escalating tensions in the Middle East, strengthening the euro and the XAF. In the near term, the ECB and US Federal Reserve interest rate decisions, alongside global trade uncertainties, will shape XAF’s performance. The Fed is expected to hold its benchmark rate steady in June, while maintaining its planned two rate cuts for 2025. Stears forecasts the XAF to close at FCFA599.5/$ by the end of Q2 2025.
The Congolese franc
