Ecobank Group research has identified three key emerging trends for Africa which include rebounding economy after a trying year, gas becoming West Africa’s new oil, and Africa’s evolving role in FinTech leadership.
This is coming as the 2017version of Ecobank Research’s Fixed Income, Currency and Commodities (FICC) Guidebook, which provides expert knowledge and analysis on African markets for investors and businesses, was launched on Wednesday at AfricaFICC, indicating a positive outlook for the continent.
The first indicates an economic rebound in sub-Saharan Africa, driven by a recovery in the region’s economic heavyweights, Nigeria and South Africa, and ongoing growth in the topper formers, Ethiopia, Côte d’Ivoire and (more recently) Ghana.
A statement by the bankstated that growth will be driven by a rise in oil production (notably in Ghana, Republic of Congo, Nigeria andAngola), strengthening infrastructure investment across West and East Africa, and improved weather conditions which bode well for crops.
It also said strengthening economic activity, plus a moderate improvement in oil and mineral prices, will help narrow the current account deficit, but pressure on SSA currencies will remain.
The second emerging trend points to West Africa’s gas sector becoming a hive of activity in2018, from Senegal to Angola, with the development of gas pipelines, floating liquefied natural gas (FLNG) platforms and major gas field projects.
The third trend suggests Fintech innovation in Africa picking up speed in 2018, buoyed by a new generation of Africans who are ‘digital natives’. The proliferation of tech hubs across Africa (notably in South Africa, Kenya, Rwanda, Nigeria, Ghana andCôte d’Ivoire) will nurture the next wave of African start-ups and help connect them with investors.
“The digital world moves apace, and so must we. The Africa FICC website is a key way that we can deliver our regional market analysis and expert local knowledge of 41 African markets –which is often hard to access – to a much wider audience. We think these three trends are strong evidence that Africa has weathered the storms of late and is very much on track for improved growth in 2018,” said Edward George, head of Ecobank Group Research.
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