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East Africa is set to anchor the continent’s economic expansion in 2026, outpacing every other region as investment flows and a fast-growing services sector accelerate momentum across the bloc.

While business conditions deteriorated sharply in some of the continent’s largest economies in March, others managed to sustain momentum despite mounting external pressures.

In January 2026, Fitch Ratings downgraded the African Export-Import Bank to BB+ (Junk status). Not long after, it withdrew its ratings. Ordinarily, this episode might have looked like a routine credit event. Rating agencies reassess risk all the time.

According to data from the Finance Ministry, the East African nation posted a surplus of $147.26 million in January 2026, reversing a $206.43 million deficit in December 2025 and a $215.28 million shortfall a year earlier.
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Despite the scale of tariff increases, the US retained its position as South Africa’s third-largest trading partner after China and Germany in 2025, reinforcing its influence in Pretoria’s trade architecture.

South Africa’s Revenue Service (SARS) achieved a historic milestone by collecting $119.73 billion (R2.01 trillion) in net revenue for the fiscal year ending March 31, 2026, marking an 8.4% increase from the previous year.

Nigeria’s National Assembly has approved a $49.38 billion budget for 2026, a 17% increase from President Tinubu’s original proposal, aimed at addressing capital projects and fiscal stability.

Analysts warn Nigeria’s heavy reliance on Chinese goods exposes it to external shocks, including changes in China’s economic conditions, supply chain disruptions or shifts in trade policy.