Africa Watchlist – What to look out for in 2023

Much of the economic weakness we are currently witnessing will likely spill over into 2023. African economies’ ability to deal with this weakness differs widely. Although global inflation should fall back sharply next year on the back of weaker commodity prices, slowing world growth, and easing supply chain constraints, we expect a somewhat slower pace of disinflation in Africa, owing in part to currency depreciation. Moreover, monetary conditions are likely to be challenging, with more monetary policy tightening anticipated.

What you will learn:

• Domestic economic fragilities mean that we could very well see annual GDP contractions in South Africa and Nigeria next year.
• The question of debt restructuring has become a hot topic lately, as a number of African sovereigns have mulled public debt reorganisation or called for debt relief in the wake of rising default odds.
• Next year is sure to be an eventful year from a political standpoint. We highlight two key political calls for 2023.