While global indices struggled under the weight of rising Middle East tensions and oil price spikes in late March, the S&P 500 fell roughly 1.7% in the final week of the quarter. African stock markets were experiencing all-time highs, cutting interest rates, and currencies strengthened. The continent did not move as one, but the direction was unmistakably positive.
Fifteen African central banks held monetary policy meetings in the first two months of the year. Eight of them cut rates, including Kenya, Egypt, Angola, Ghana, Mozambique, Zambia, Nigeria, and the Democratic Republic of Congo. This easing wave signals something important: after more than two years of aggressive rate hikes to fight post-pandemic
inflation, African policymakers now have enough confidence to start putting growth back on the agenda.
Inflation has cooled meaningfully in several countries. In Kenya, headline inflation fell to approximately 3.5% by early 2026, well within the Central Bank of Kenya’s 2.5–7.5% target band. Ghana’s inflation declined to 12.1% in July 2025 (its lowest since December 2021) and continued moderating into 2026 despite the Bank of Ghana’s aggressive easing.. In
Zimbabwe, inflation has fallen sharply from its 2024 highs following ZiG currency reforms. In Zambia, easing inflation gave the Bank of Zambia room to cut rates by 75 basis points to 13.5% in Q1 2026.
At the same time, African startup ecosystems raised $487.25 million in the first two months of 2026, an 11% increase over the same period in 2025. The composition of that money is shifting, though. Equity capital fell significantly, while debt financing more than doubled. Investors are becoming more selective and more structured. The era of easy
venture money may be fading, but the demand for African solutions is not.