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Stock markets across Africa are soaring, drawing renewed attention from global investors chasing returns amid a tariff war and rising geopolitical risks.
Ghana was in first place among the world’s best-performing stock markets in dollar terms this year tracked by Bloomberg, followed by Zambia in second place, Nigeria in 14th, Kenya in 15th and South Africa in 21st spot.
The “dramatic rises” are partly due to reform, rate cuts and dollar weakness globally, said Charlie Robertson, head of macro-strategy at FIM Partners.
The dollar has sold off amid investor fears that US tariffs on trading partners may threaten growth and reduce global demand, reinforcing expectations of lower US interest rates.
All five African nations have been implementing reforms to reduce their budget deficits and boost economic growth. All but Zambia have also started easing interest rates as inflation has slowed down.
Ghana, Zambia and South Africa are also benefiting from a boom in commodity prices.
Platinum has rallied almost 75% and copper 18% on supply constraints and gold has surged 48% as investors flock to safe-haven assets.
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