Africa’s markets opened the week on a fragile footing as a sharp slump in gold and silver prices triggered the biggest selloff in South African equities since 2020. At the same time, Ethiopia pushed ahead with reforms spanning retail and gold markets, Nigeria’s private sector slipped into contraction for the first time in more than a decade, and Kenya saw food inflation ease despite worsening drought conditions — highlighting a continent balancing reform momentum against weak demand and global volatility.
Gold, silver slump sends Africa’s top stock market to biggest fall since 2020
South African equities tumbled sharply on Monday after a brutal selloff in precious metals rattled investor confidence. The FTSE/JSE All Share Index, Africa’s most valuable equity benchmark, fell as much as 6.1 percent at its worst point — its steepest intraday decline since March 2020 — before paring losses to about three percent by mid-morning, according to Bloomberg.
Shares of precious-metals miners led the rout, with the sector index plunging 11 percent. Heavyweights such as Gold Fields, AngloGold Ashanti and Valterra Platinum were among the biggest drags on the broader market.
Why it matters: South Africa’s equity market remains highly exposed to commodity cycles. The selloff underscores how quickly global price reversals can erase gains, dent investor confidence and tighten financing conditions across Africa’s most liquid market.
Carrefour’s arrival tests Ethiopia’s retail liberalisation
The planned entry of French retail giant Carrefour into Ethiopia marks a defining moment in the country’s retail reform drive, signalling a shift from decades of tightly controlled domestic trade toward a more open consumer market.
Ethiopia’s retail landscape has long been dominated by informal markets and small family-owned stores. The arrival of a capital-intensive global supermarket operator represents a structural break — and a test case for whether recent liberalisation efforts can attract sustained foreign investment.
Why it matters: Carrefour’s entry could accelerate competition, formalise supply chains and unlock private investment. A stumble, however, would raise questions about the depth and durability of Ethiopia’s reform agenda.
Nigeria’s business activity contracts for first time since 2014
Nigeria’s private sector activity slipped into contraction in January as post-festive demand weakened. The Stanbic IBTC Purchasing Managers’ Index fell to 49.7 from 53.5 in December, dropping below the 50-point threshold that separates expansion from contraction.
“After 13 months of consecutive readings above the 50-point mark, Nigeria’s private sector activity deteriorated,” said Muyiwa Oni, head of equity research for West Africa at Stanbic IBTC.
Why it matters: The PMI contraction highlights the fragility of Nigeria’s recovery despite easing inflation, with implications for corporate earnings, hiring and investment decisions in early 2026.
Ethiopia to open gold market to banks, curb central bank role
Ethiopia will allow private banks to purchase gold directly and phase out premiums paid to artisanal miners, reducing the central bank’s dominance in the market, according to the International Monetary Fund.
The reforms follow a surge in officially recorded gold exports — from just over four metric tons in 2023/24 to nearly 39 metric tons in 2024/25 — driven by high prices and rising volumes.
Why it matters: Opening the gold market could lower balance-sheet risks at the central bank, improve transparency and reshape incentives across Ethiopia’s mining and financial sectors.
Kenya’s food inflation eases despite deepening drought
Kenya’s annual food inflation slowed to a six-month low of 7.3 percent in January from 7.8 percent in December, helped by falling prices of sugar, mangoes and cooking oil, data from the Kenya National Bureau of Statistics showed.
The easing comes even as the country experiences its shortest October–December rainfall season since 1981, worsening drought conditions across large parts of the country.
Why it matters: Cooling food inflation offers short-term relief for households and policymakers, but deepening drought risks reversing recent gains and reigniting price pressures later in the year.
Chart of the Week
