Fitch says macro stability in Sub-Saharan Africa supports stable outlook

By bne IntelliNews December 16, 2013

Growth in Sub-Saharan Africa will pick up in 2014, helped by recovery in Europe, but financial market turbulence due to U.S. Federal Reserve reduced bond-buying programme could pose challenges for the sovereign ratings, Fitch Ratings said in its 2014 outlook report for Sub-Saharan African sovereigns. It estimated the overall rating outlook of the region as stable.

Fitch expects that the region’s GDP growth will pick up slightly in 2014, to average 5.1% with the growth outside South Africa, the largest but also the slowest growing economy in the region, rising to 6.3%.

The decision of the U.S. Federal Reserve to reduce bond-buying caused a gap in Eurobond issuance since May, but two of the countries in the region – Nigeria and Ghana, placed new issues on the market several months later.

Fitch said it considers the overall rating outlook for the region as stable as of the 16 ratings in the region, 69% of outlooks are stable, up from 60% a year ago, 25% are positive compared to 20% a year ago and 6% are negative compared to 20% last year. Three countries gained positive outlook in 2013 - Rwanda, Seychelles and Uganda, and one was assigned a negative outlook - Cape Verde. However, downgrades of Ghana, South Africa and Zambia outweighed the one upgrade of Mozambique.

The biggest external risk to the region in 2014, according to Fitch, will come from the U.S. Federal Reserve reduced bond purchase. The main domestic risk could come from over-loose fiscal policy. Elections in 2014 in South Africa, Mozambique and Namibia are unlikely to bring significant changes in policy.

Related Articles

Almaty cost of living lowest among major cities

Kazakhstan’s largest city and business centre Almaty has dropped to last place on the Economist Intelligence Unit’s bi-annual ranking of the ... more

AB InBev sells 54.5% stake in African Coke bottling business for $3.15bn

Anheuser-Busch InBev will sell a 54.5% stake in Africa's largest Coke bottler to Coca-Cola Company for $3.15bn, the two companies said in a joint statement on December 21. The deal is expected to ... more

IMF slashes South Africa’s 2016 growth outlook to 0.7%

The International Monetary Fund (IMF) has lowered sharply its 2016 GDP growth forecast for South Africa to just 0.7% from 1.3% anticipated in October, its World Economic Outlook (WEO) update released ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss