West Africa economic outlook for 2018

In its 2018 Global Economic report, the World Bank projects that the Sub-Saharan African economy will grow by 3.2 per cent this year. Arnold Dublin-Green, Portfolio Manager at Ecobank, provided CNBC Africa with an investor's outlook on the West African region for 2018. The discussion focused on the economic performance of various countries in the region, including Ghana, Nigeria, and Kenya. Ghana appeared to be a standout performer, with positive indicators such as increasing oil production, stable inflation rates, and a growing stock market. The country's macroeconomic stability, supported by an IMF program, has contributed to its favorable economic outlook. In contrast, the BRVM market, which includes several West African countries, struggled in 2017, with negative EPS growth and expensive stock valuations. Foreign investors have shifted their focus towards markets like Nigeria and Ghana, which offer more attractive opportunities. Nigeria, with a significant increase in its stock market performance in 2017, continues to show promise for investors. Despite challenges in the private credit sector in both Ghana and Nigeria, lower interest rates are expected to stimulate credit growth and support economic expansion. Kenya, despite facing political issues in 2017, has shown resilience in its equity and bond markets, making it an appealing investment option. In summary, investors are advised to consider long-dated bonds in Ghana, bank stocks in Nigeria, and monitor macroeconomic indicators to make informed investment decisions in the West African region in 2018.