Key emerging markets in Africa experienced significant economic policy developments in February 2025. ACIOE’s analysis of Kenya, Ghana, and Nigeria reveals distinct approaches to managing inflation, interest rates, and currency stability amidst evolving global economic conditions. Kenya’s inflation rate rose to 3.5% in February (up from 3.3% the previous month). The central bank’s benchmark interest rate was reduced to 10.75%, which helped maintain a relatively stable shilling, with improved foreign reserves providing a solid buffer. Ghana continues its recovery, with inflation declining to 23.5% from its 54% peak in 2022 while maintaining high interest rates and rebuilding reserves under IMF support. Nigeria has achieved the notable milestone of converging its official and parallel exchange rates at around ₦1,500 per USD after significant adjustments in 2024, supported by improved dollar liquidity and reduced inflation following a recent CPI rebasing. Looking ahead to March, ACIOE projects continued stability with potentially modest improvements, though each country faces unique risks that could impact their currency markets…Read more