Moody's positive on Sub-Saharan Africa in 2025

Sub-Saharan Africa’s economic growth is expected to improve to an average 4.2% this year from an estimated 3.8% in 2024, boosted by investments in energy and infrastructure and an expanded services sector, according to Moody’s Ratings.The US company lifted its outlook for the region’s credit fundamentals to stable from negative, saying fiscal consolidation efforts would help reduce debt. That’s despite ongoing social, political and environmental risks in countries such as Ivory Coast and Mozambique.South Africa and Nigeria, the region’s two biggest economies, are both making reforms that boost their creditworthiness and economic-growth prospects, Moody’s said in a report dated 8 January. South Africa will take time to show major improvement even as power cuts ease, while Nigeria is expected to continue with efforts to establish a better-functioning foreign-exchange market. Average economic growth in sub-Saharan Africa is likely to be higher than in the past decade in part due to a series of shocks, including the commodity-price plunge of 2014-16, the Covid-19 pandemic, and the inflation surge following Russia’s 2022 invasion of Ukraine, Moody’s said.Sub-Saharan Africa’s economic growth is expected to improve to an average 4.2% this year from an estimated 3.8% in 2024, boosted by investments in energy and infrastructure and an expanded services sector, according to Moody’s Ratings.The US company lifted its outlook for the region’s credit fundamentals to stable from negative, saying fiscal consolidation efforts would help reduce debt. That’s despite ongoing social, political and environmental risks in countries such as Ivory Coast and Mozambique.South Africa and Nigeria, the region’s two biggest economies, are both making reforms that boost their creditworthiness and economic-growth prospects, Moody’s said in a report dated 8 January. South Africa will take time to show major improvement even as power cuts ease, while Nigeria is expected to continue with efforts to establish a better-functioning foreign-exchange market. Average economic growth in sub-Saharan Africa is likely to be higher than in the past decade in part due to a series of shocks, including the commodity-price plunge of 2014-16, the Covid-19 pandemic, and the inflation surge following Russia’s 2022 invasion of Ukraine, Moody’s said.In Mozambique, opposition leader Venâncio Mondlane who directed the biggest protests the southeast African nation has seen after official results showed he lost Oct. 9 presidential elections to ruling-party candidate Daniel Chapo has returned to the country.

Moody's positive on Sub-Saharan Africa in 2025

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Moody's positive on Sub-Saharan Africa in 2025

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