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) weakened by 0.6% last week, ending at FCFA605/$, due to a strong dollar supported by elevated US interest rates. The Federal Reserve kept rates steady at 4.25%–4.5%, indicating no immediate plans for cuts despite expectations for reductions later this year. While uncertainties around US tariffs may bolster the Euro and reduce pressure on the XAF, the broader eurozone-US interest rate differential favouring the US could continue to weigh on the XAF in the near term.
- Sovereign Rating: S&P Global Ratings affirmed its 'B-/B' long- and short-term sovereign credit ratings for Cameroon, maintaining a stable outlook. Cameroon's economy continues to post solid GDP growth driven by rising gas production, industrialisation, and strong cocoa and timber exports. However, growth
