The end of the Iran war and what it means for Africa

Many economies in Sub-Saharan Africa, particularly those in East Africa, will be key beneficiaries from the reopening of the Strait of Hormuz and the drop back in global energy prices, although the tailwind for energy exporters (e.g. Nigeria and Angola) will fade. There will be lasting consequences of the war, with African economies already looking at ways to reduce their reliance on supplies of refined products from the Middle East. Meanwhile, inflation figures for May published this week by Nigeria and South Africa were softer-than-expected, raising the possibility of Nigeria restarting its easing cycle in the coming months and reducing the chances of the South African Reserve Bank delivering another rate hike in July.