INTO AFRICA September 2018 Edition – Gauging 2018 African Outlook

Welcome to the September 2018 edition of INTO AFRICA, a publication with fresh insight into Africa’s emerging capital markets. This edition reviews Africa’s economies in the first half of 2018 and its title: Gauging 2018 African Outlook.

 Africa is set to enjoy a modest growth uptick, and decisive policies are needed to both reduce vulnerabilities and raise medium-term growth prospects, according to the IMF. In parallel, the Brookings Institution projected the average growth in the region is to rise from 2.8 percent in 2017 to 3.4 percent in 2018, with growth accelerating in about two-thirds of the countries in the region, aided by stronger global growth, higher commodity prices, and improved capital market access.

 In the second quarter of 2018, South Africa’s economy shrank by 0.7% (against 2.6% decrease in the first quarter of 2018), impacted mainly by agriculture, transport, and trade. The contraction in the second quarter indicates that South Africa has entered into a recession. The Nigerian economy grew 1.5 percent year-on-year in the second quarter of 2018, slowing from a 1.9 percent expansion in the prior period. This was the weakest growth rate since the third quarter of 2017, as oil output shrank while the non-oil sector continued to rise.

 While Africa remains a region with tremendous growth potential, a prudent fiscal policy is needed to rein in public debt, while monetary policy must be geared toward ensuring low inflation. African countries should also strengthen revenue mobilization and continue to advance structural reforms to reduce market distortions, shaping an environment that fosters private investment.

ANNABEL BISHOP (Chief Economist, Investec, South Africa) reviews the state of South African economic outlook amidst emerging markets uncertainty. At the same time, MICHAEL FAMOROTI (Chief Economist, Vetiva Capital Management Limited, Nigeria) examines the health of the Nigerian economy. Likewise, LINET MURIUNGI (Head of Research, Dyer & Blair Investment Bank, Kenya) states that the first half of 2018 was characterized by both headwinds and tailwinds across various sectors in Kenya.

PLEASE CLICK TO DOWNLOAD – INTO AFRICA PUBLICATION: SEPTEMBER 2018 EDITION.