LAST WEEK IN AFRICA: Egypt Cuts Interest Rates, Gold Boosts South African Markets & Uganda Secures $800M For Infrastructure

Egypt Cuts Interest Rates Amid Rising Growth
On May 22, 2025, Egypt’s central bank cut its key overnight interest rates by 100 basis points, bringing the deposit rate to 24% and the lending rate to 25%. This marks the second rate cut of the year, following stronger-than-expected economic growth in Q1 2025 at 5.0%, up from 4.3% in the previous quarter. Inflation rose slightly from 12.8% in February to 13.9% in April. The bank noted the move aims to balance disinflation efforts with monetary easing.

South African Markets Rally as Gold Prices Surge
South African markets saw gains on May 23, 2025, driven by rising global gold prices. The rand strengthened by 0.5% against the U.S. dollar to trade at 17.9150, while the JSE Top-40 index climbed 0.7%. Government bonds also rallied, with the yield on the 2030 benchmark falling 2.5 basis points to 8.87%. These movements reflect investor optimism amid a shift toward safe-haven assets.

Uganda Secures $800 Million for Trade and Infrastructure Projects
Uganda signed an $800 million financing deal with the Islamic Development Bank to fund key development projects over the next three years. A major component is a railway line linking Uganda to Kenya’s Standard Gauge Railway, enhancing trade access to the Indian Ocean port of Mombasa. Other projects will support transport, energy, and healthcare infrastructure.

Africa’s economic dynamics are constantly evolving. At QAl, we’re committed to decoding these shifts and delivering timely insights that matter.