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South Africa’s National Treasury warns of limited capacity to shield the economy from a looming fuel price crisis due to escalating Brent crude oil prices. With the potential for record fuel price hikes and rising inflation, local businesses may pass costs to consumers.
Analysts say the inflation figures largely predate the escalation of conflict in the Middle East, which has triggered a sharp surge in global oil prices and dashed hopes of a rate cut as policymakers meet next week.
Burundi is gaining investor interest with its agreements to explore the Musongati nickel project, a significant resource in East Africa. While the deal with Lifezone Metals and KoBold Metals promises potential economic benefits amid rising global nickel demand.
The payments, which include both installments on borrowed sums and interest charges, reflects 24.5% of the government’s total revenue of $11.81 billion (KSh1.53 trillion) over the same period.
Nigeria’s inflation slowed to 15.06% in February, marking an eleventh straight month of easing price pressures, though food inflation rose to 12.12% amid seasonal demand.
African equities entered 2025 with caution. Inflation was still biting in several economies, currencies were volatile, and foreign investors remained selective about frontier exposure.
Ethiopia’s manufacturing sector is losing employment share despite strong economic growth, highlighting structural bottlenecks that could complicate the country’s industrialisation strategy, according to the African Development Bank (AfDB).
Regional liquidity strains have left the country reliant on debt rollovers rather than fresh borrowing, prompting officials to highlight the need for stronger budget rigidity and sustainable public finances.
The disruption of shipping and energy flows through the Strait of Hormuz, which handles roughly 20% of global seaborne oil trade, has pushed crude prices 40–50% higher in recent weeks, raising concerns about renewed inflationary pressure across global markets.
Despite the broader easing, food inflation remains elevated. Prices for food and non-alcoholic beverages rose 10.8% year-on-year, slightly higher than the 10.4% recorded in January.
Inflation continued to cool across several of Africa’s largest and most closely watched economies in February, extending a downward trend that gathered pace through much of 2025 and the opening weeks of this year.
Tanzanian authorities are pushing domestic value addition, including plans for a state-backed refinery and requirements for large miners to process and trade portions locally.
The announcement comes as Zimbabwe, once barred from borrowing from the World Bank, African Development Bank and Paris Club creditors after defaulting in the late 1990s, inches toward rejoining the global financial mainstream.
Kenya’s private sector stayed in expansion mode in February, with the Stanbic Bank PMI at 50.4 above the 50 neutral line despite a slight slowdown. Services, construction and retail led gains, while inflation cooled to 4.3%.
Nigeria rebounded strongly after a January dip ended its 13-month expansion streak, supported by higher new orders, improved affordability, and currency stability. Yet Uganda remained the continent’s top performer.
With confidence at a multi-year low and order books thinning, the durability of South Africa’s fragile stabilisation may hinge on a sustained recovery in domestic demand and supportive macroeconomic conditions.
S&P said all five sub-components of the index signalled weaker operating conditions compared with January, as firms grappled with softening demand and intensifying price pressures.
Currency swings are quietly eroding insurers’ profits across Africa, as FX losses and rising claims costs turn strong premium growth into weaker bottom lines.
Egypt’s net foreign assets (NFA) climbed to an unprecedented $29.54 billion in January, marking a $4.02 billion increase from the previous month
Except for January’s dip, operating conditions have strengthened consistently since December 2024, pointing to sustained business momentum.
