Africa Weekly: Trump tariffs, oil prices, Kenya rates

The direct blow to African economies from the tariffs imposed by the US should be limited, but the indirect hit will be larger if global growth weakens and financial spillovers materialise. And while the associated recent fall in oil prices may be welcomed by some in the region, major producers such as Angola and Nigeria will be worried about the implications of reduced oil revenue on their currencies and weak public finances. Finally, we think Kenya’s central bank will need to tread more cautiously after its larger-than-expected 75bp interest rate cut this week, with inflation risks building and the external environment more uncertain.