Most of the data released over the past month suggested that African economies strengthened in late 2017. Q3 GDP figures showed faster growth in Ghana, Zambia, Botswana, and Rwanda – with growth in Ghana hitting a three year-high. More timely activity data pointed to a stronger performance in Nigeria and in South Africa, where growth seems to have held up in Q4. Political developments in South Africa and Angola also provided reasons for optimism. The election of Cyril Ramaphosa as leader of South Africa’s ANC boosted confidence, with investors betting that a reformist leader will enact business-friendly policies in the country. And in Angola, recently-elected President João Lourenço pushed forward with an unexpectedly-rapid reform programme, including a currency devaluation. Kenya and Ethiopia were two outliers. Growth in Kenya faltered in Q3, while activity figures point to weaker performance in Ethiopia.
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