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
The XAF depreciated against the US dollar over the week, moving in line with the euro's 3-month low following the ECB’s decision to pause rate cuts. A trend that could be reversed should the US Fed cut rates, ultimately weakening the dollar’s appeal. Conversely, the Congolese franc maintained its strength amid sustained high global copper and cobalt prices. However, this support is being countered by the Central Bank of Congo's decision to draw down reserves to stabilise the currency, a move that could become unsustainable in the coming months. The Angolan kwanza remained relatively stable over the week. However, currency pressures loom as reduced oil production and low oil prices limit the country's primary source of foreign-exchange earnings.
Key developments
Angola
- International funding: Angola's Minister of Transport, Ricardo
