Seismic shifts in global trade and funding have weakened many of Africa’s financial systems in the past year, although there have also been signs of improvements via reforms to foreign exchange regimes and action to help mitigate the impact of climate change, a survey showed on Thursday.
Disruptions to long-standing trade deals, rising tariff uncertainty, and reduced foreign aid to Africa have all triggered sharp asset price movements.
The annual index compiled by pan-African bank Absa and London-based think tank OMFIF showed that while 10 of the 29 countries surveyed recorded improvements, 11 saw declines and eight remained unchanged.
“On a headline basis, the last year may feel like a bit of a disappointment,” Absa Group Chief Executive Kenny Fihla, said.
“But the detail shows that progress continues to be made across the region, particularly in foreign exchange reforms, improved product diversity and action on climate change,” Fihla said.
The report noted growing momentum in
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