From Ethiopia's efforts to deepen capital markets reforms and Morocco's emergence as Africa's leading industrial economy to rising borrowing costs, inflationary pressures in Kenya and Botswana's latest diversification push, the continent's major economies are increasingly poised for long-term growth amid growing global uncertainty.
Here are the stories that shaped the first week of June
Ethiopia Telecom becomes the first non-bank to list on Ethiopia's new stock exchange
Ethio Telecom has officially started business Ethiopian Securities Exchange (ESX)Became the first major non-financial company to join the country's nascent capital market. The listing follows a partial privatization of the telecom operator by the government, during which 47,377 investors bought 10.7 million shares worth 3.2 billion pounds ($20 million).
why it matters: The listing marks a major milestone in Ethiopia's long-delayed capital markets reforms and signals the government's growing efforts to open the economy to private investment. It also expands the ESX beyond financial institutions, potentially paving the way for future listings from sectors such as telecommunications, manufacturing and energy in one of Africa's largest untapped markets.
Morocco overtakes South Africa as Africa's industrial superpower after 15 years
Morocco has overtaken South Africa Africa's leading industrial economy for the first time in 15 years, according to the African Development Bank's 2025 Africa Industrialization Index. The North African country rose to the top spot after years of aggressive industrial policy, expansion of manufacturing exports, infrastructure investment and economic diversification.
why it matters: This shift highlights the changing geography of industrial development in Africa. While Morocco has established itself as a global manufacturing and export hub for sectors such as automotive, aerospace and renewables, South Africa's industrial competitiveness has been weakened by power shortages, logistics bottlenecks and slow economic growth.
Borrowing costs in Africa remain highest in the world as central banks delay rate cuts
African countries are keeping some of the world's highest interest rates until May 2026 as the Iran war raises fresh inflation concerns, Rising oil prices and currency pressure. Data compiled by Trading Economics shows that benchmark interest rates range from 35 percent in Zimbabwe to 1.75 percent in Seychelles, reflecting wide variations in monetary policy across the continent.
why it matters: Persistently high interest rates are increasing borrowing costs for businesses and households across Africa, potentially slowing investment and economic growth. The cautious stance also reflects how global geopolitical tensions and imported inflation risks are complicating monetary policy decisions for African central banks already struggling with currency instability and food inflation.
Inflation in Kenya hits two-year high as fuel prices rise
Kenya's annual inflation increased to 6.7 percent in May The rate of growth rose by 5.6 percent in April, its highest level since January 2024, according to data from the Kenya National Bureau of Statistics. The increase was primarily driven by higher fuel prices amid rising global energy costs linked to tensions involving Iran.
why it matters: A sharp increase in inflation could complicate Kenya's monetary policy outlook and add pressure to households already facing high living costs. It also highlights how geopolitical tensions in the Middle East are affecting African economies through energy prices, transportation costs and imported inflation.
Botswana picks ex-AfDB chief Adesina to lead diamond diversification fund
Akinwunmi Adesina, former President of the African Development Bank appointed Chairman of Botswana's Diamond for Development Fund, a new initiative created by the Government of Botswana and De Beers Group to use diamond revenues to promote economic diversification, job creation and long-term development.
why it matters: The appointment reflects Botswana's growing effort to reduce its dependence on diamond exports and build a more diversified economy. It also signals an increasing focus on using commodity wealth to finance broader economic transformation beyond industrialization, infrastructure and extractive industries in resource-rich African countries.
chart of the week
