Sub-Saharan Africa market review

The business landscape in Sub-Saharan Africa continues to evolve as countries grapple with the ongoing impact of the COVID-19 pandemic and navigate the opportunities presented by the Africa Continental Free Trade Area. The second month since the rollout of the trade agreement has seen a focus on economic recovery and support, as countries work to mitigate the challenges brought about by the pandemic. Ridle Markus, Africa Strategist at Absa Corporate & Investment Banking, highlighted the importance of stabilizing the continent to fully benefit from the Africa Free Trade Agreement. While the road ahead may pose new challenges, Markus remains optimistic about the long-term prospects for Africa's economic growth. The recent elections for the AU Commission have brought potential shifts that could influence the region's economic landscape. President Buhari's call for reforms within the AU reflects a desire for increased involvement and collaboration to ensure that every country benefits from initiatives like the Africa Free Trade Agreement. In terms of economic indicators, inflation rates across the continent are showing a mixed picture. Many economies are experiencing higher inflation due to a weaker exchange rate and rising food prices. However, Markus predicts that currencies may stabilize in the early parts of the year, especially with oil prices on the rise. While some countries like Nigeria and Ghana may benefit from higher oil prices, the increased oil import bills could impact inflation and current account balances. Overall, the outlook for Sub-Saharan Africa's business environment remains cautiously optimistic. As countries navigate the challenges of inflation and economic recovery, there is a sense of hope for long-term growth and stability in the region.