Nairobi — African markets are set for a closely watched session on Friday as global bond yields, oil prices, currency movements, regional security concerns and debt developments shape investor sentiment.

Global Markets

Asian shares remained relatively resilient as a persistent sell-off in longer-dated bonds pushed U.S. yields to their highest levels in two decades. Higher global borrowing costs could place additional pressure on African sovereigns and companies that rely on international financing.

Oil Prices

Oil prices edged lower as markets weighed prospects for a possible U.S.-Iran truce against continued geopolitical risks in the Middle East, including attacks by Houthi rebels. Movements in crude prices remain important for African oil exporters such as Nigeria while also affecting import bills for energy-dependent economies.

Ethiopia Security Risks

Flights to the historic Ethiopian town of Lalibela were suspended following fighting nearby, while residents in the Tigray region reportedly stocked up on food and cash amid fears that renewed conflict could escalate. Any prolonged deterioration in security could affect tourism, transport and investor confidence.

Ghana Interest Rates

Ghana’s central bank kept its main interest rate at 14% for a third consecutive meeting, saying risks to inflation and economic growth were broadly balanced. The decision leaves monetary policy unchanged as investors continue to monitor inflation and currency developments.

African Currencies

Traders expect Uganda’s shilling and Ghana’s cedi to weaken against the dollar in the week ahead, while Kenya’s shilling and Nigeria’s naira are expected to remain broadly stable. Currency movements will remain sensitive to dollar strength, commodity flows and domestic foreign-exchange liquidity.

Senegal Debt Restructuring

Senegal’s proposed restructuring of its foreign-currency debt is unlikely to have a major effect on sub-Saharan African commercial banks because of their limited exposure to the country’s international debt, according to S&P Global Ratings.

The issue remains important for regional investors as Senegal works through its broader debt challenges. The IMF and World Bank have also recently approved reforms to their low-income-country debt sustainability framework, with the changes expected to become operational in the second half of 2027.

Africa Energy Ethiopia-Djibouti Pipeline

Ethiopia, Djibouti and Nigerian billionaire Aliko Dangote are planning a $660 million refined-petroleum pipeline linking Ethiopia and Djibouti, according to a spokesperson in Ethiopian Prime Minister Abiy Ahmed’s office.

The proposed infrastructure could have implications for fuel supply, regional trade and energy logistics in the Horn of Africa.

Source: Reuters