African Development Bank (AfDB)
AfDB launches new climate financing instruments (CAW) as Africa demands institutional capital for adaptation and mitigation; with sovereign spreads and private-capital flows in focus, the bank aims to muster US $4bn by end-2025 for green transition.
Sub-Saharan Africa
World Bank raises Sub-Saharan Africa’s 2025 growth forecast to 3.8% as inflation eases near 5%. Bond yields remain elevated—Kenya 17%, Ghana 25%, South Africa 10-year 10.4%—signaling resilience but fragile confidence under tight global liquidity.
Egypt
Egypt and France renew a €4B cooperation pact through 2030, expanding AFD-backed projects in transport and energy. Egypt’s Eurobond (EGYP2032 ≈ 9.9%) tightens 20 bps as markets view the deal as a sign of fiscal stability amid global rate pressure.
Togo
Togo is reviewing its AfCFTA strategy to shift from treaty compliance to competitiveness. With GDP growth near 5%, debt at 55% of GDP, and TG2031 Eurobond yields at 8.6%, Lomé aims to turn its port and industrial base into a real regional trade engine.
Kenya
Kenya’s CBK cut its benchmark rate to 9.25%, the 8th straight easing, as inflation cools to 4.6% and the shilling (USD/KES: 128.5) steadies. With NSE: NASI up 0.6% and US10Y: ^TNX at 4.35%, markets test whether liquidity trumps currency risk in Africa’s top frontier economy.
Cabo Verde
Cape Verde’s €24m Fundo Morabeza, backed by AfDB (XBRU: AFDB) and tied to BVC (BVC: BVCI), equals ≈ 1 % of GDP. With inflation ≈ 2.3 % and debt ≈ 55 % of GDP, Praia is betting on equity, not aid, to fuel fintech and clean-energy startups across the archipelago.
Markets
AfDB approves USD 22.8m for Mozambique to raise rice yields from 1t/ha to 4t/ha, lifting incomes to USD 1,000. A test for food security, ESG flows, and sovereign credibility, with investors watching agriculture as a macro risk factor.
Markets
Egypt issues USD 1.5bn dual-tranche sukuk (3.5yr 6.375%, 7yr 7.95%) after USD 9bn+ orders. Pricing inside Eurobond curve, but yields still ~7–8%. Signals diversification, yet risks remain as debt >92% of GDP and EGYPT 2030/2033 trade above 7.5%.
Markets
NSE launches Banking Sector Index tracking lenders like EQTY (P/B 0.9x, ROE 23%) & KCB (0.8x, ROE 19%). Kenyan banks now benchmarked for ETFs & global flows. Sector trades at 0.6–0.9x P/B vs Nigeria 0.4x, South Africa 1.3x; NPLs still ~14%.
Markets
AfDB approves €73.27m for Equatorial Guinea to cut 23.5% youth joblessness, build polytechnics, and back 500 firms. With Brent (ICE: LCOc1) near USD 88 and debt at 42% of GDP, success could shift a petro-state toward inclusive growth.
Markets
Kenya MPs eye stricter in duplum rule as NPLs hover at 15%. Equity (NSE:EQTY, mcap US$2.2bn) and KCB (NSE:KCB, mcap US$1.8bn) risk margin compression with net interest income >65% of revenue. Banks may retreat to corporates, reshaping Africa’s credit landscape.
Markets
Tanzania’s Eurobond trades at 9.2%—close to Kenya and Ghana. AfDB’s Exim Bank guarantee is too small to shift flows, but its signaling value could shape spreads, SME risk premiums, and investor sentiment.