Frontier Africa Reports
Frontier Opening Bell

Frontier Opening Bell - Monday, Feb. 3, 2025

by FRONTIER AFRICA REPORTS

Key Highlights from Global & African Markets

Trump’s Tariffs Shake Global Markets

  • Over the weekend, U.S. President Donald Trump imposed a fresh round of tariffs on Canada, China, Mexico, and South Africa, rattling global financial markets as the new business week begins.
  • South African President Cyril Ramaphosa responded to Trump's actions, particularly regarding land matters and economic relations with Washington.
  • There is speculation that additional sanctions or defunding measures may be announced against South Africa in the coming weeks.

African Market Overview

Stock Market Performance

  • Nigerian Market: Down 0.24% over the weekend.
  • Egypt’s EGX30 Index: Opened the week 0.31% lower, slipping below the 30,000 mark.
  • Johannesburg Stock Exchange (JSE): Analysts expect South Africa’s market to react negatively to Trump’s directives on land policies.

Key Economic Data & Developments Across Africa

East Africa

  • Kenya:

    • Interest rate decision by the Central Bank of Kenya scheduled for February 5.
    • Purchasing Managers' Index (PMI) data expected alongside Uganda’s economic figures.
    • Inflation rose to 3.3% in January, influencing Monetary Policy Committee (MPC) decisions.
    • Kenya Power declared a 20-billion-shilling cash dividend to the government for the first time in nine years, boosting share prices.

  • Uganda:

    • Interest rate decision by the Bank of Uganda expected on February 6.

  • Ethiopia:

    • IMF Chief Kristalina Georgieva to visit Addis Ababa on February 8–9, marking her first official trip.
    • Discussions will center on economic reforms led by Prime Minister Abiy Ahmed, along with ongoing engagements with Washington and the IMF.

Southern Africa

  • South Africa:

    • Eskom’s half-year profit surged to 17.8 billion Rand, driven by higher electricity tariffs.
    • The power utility now requires homes and businesses with solar panels to register them, or face fines.
    • The country’s December trade deficit stood at 15.46 billion Rand.
    • Retail giant Pepco plans to open 200–300 new stores as consumer spending improves post-pandemic.

  • Zimbabwe:

    • Retail chain Edgars Stores plans to launch 20 new express outlets in 2025.

  • Namibia:

    • Seeking $150 million in climate investment funding.

North Africa

  • Egypt:

    • Remittances from Egyptians abroad totaled $26.3 billion, a boost for the country’s economy.
    • Central Bank of Egypt remains a key player in economic stabilization.

  • Morocco:

    • Spain-Morocco underwater rail project delayed to 2040, missing the original 2030 FIFA World Cup deadline.
    • Manufacturing inflation declined by 0.2% last month.

  • Mauritania:

    • Signed a new agreement with EFB to develop the Western Sahara livestock sector.

Conclusion

  • With a busy economic data week ahead, markets across Africa are bracing for interest rate decisions, inflation reports, and corporate earnings releases.
  • The impact of Trump’s new tariffs on global and African economies will be closely monitored.
  • Nigeria’s economic outlook for 2025 remains positive, with the Naira stabilizing between ₦1,400–₦1,500 per USD.
  • Investors will watch earnings season closely, with BFU’s Q4 pre-tax profit soaring 288% among early strong performances.

Host: BOASON OMOFAYE | Monday, February 3, 2025
"Hope you have a profitable day!"