25th July 2024

Good morning! South Africa's inflation trends to a six-month low, a new report highlights a $193 billion investment opportunity in Africa's renewable energy sector, Kenyans react negatively to President Ruto's address and Libya faces challenges from a surge of illicit banknotes impacting its currency stability.

Here is your daily Rooster’s Crow:

South African Inflation Trends and Outlook

South Africa's inflation rate eased to a six-month low of 5.1% in June 2024, driven by slower increases in food and transport costs. This moderation has led to speculation about potential interest rate cuts by the South African Reserve Bank (SARB). Although the SARB's recent decision-maintained rates at 8.25%, a shift towards a more dovish stance is evident, with market expectations now leaning towards a rate reduction in September. Analysts suggest that inflation could dip below the SARB's 4.5% target by year's end, given the current economic trends​.

Africa's Renewable Energy Potential

A recent study highlights a $193 billion investment opportunity in Africa's renewable energy sector. The continent's vast natural resources, such as solar and wind, position it as a key player in the global energy transition. The study emphasizes the potential for renewable energy to drive economic growth, create jobs, and enhance energy security across the region. This investment could also significantly contribute to global efforts to reduce carbon emissions, making Africa a critical area for future sustainable development projects​.

New Kenyan Cabinet

Kenya's President William Ruto is set to announce a new cabinet line-up, which is expected to address various economic and political challenges facing the country. This development comes amid rising public discontent and the threat of renewed protests from opposition groups. The new cabinet's composition is seen as crucial in shaping Kenya's policy direction and stabilizing the political climate. Observers are keenly awaiting details on the government's plans to tackle inflation, unemployment, and other pressing issues.

Illicit Currency Issues in Libya

In Libya, a surge of illicit banknotes, reportedly printed in Russia, is impacting the local currency, the Libyan dinar. These banknotes are primarily circulating in eastern Libya, exacerbating the country's economic instability and complicating efforts to maintain monetary policy. The influx of counterfeit currency has led to inflationary pressures and undermined confidence in the national financial system highlighting broader geopolitical and economic challenges facing Libya as it struggles with internal divisions and external influences​.

Coming up

Tomorrow, Kenya's Central Bank will announce its interest rate decision, whilst Nigeria releases its latest inflation figures