African markets react to Trump’s new federal policies
Markets within East Africa remain uncertain following the series of bold policy shifts introduced by U.S President Donald Trump. Daisy Anthea Nitwe, Country Lead for Derivatives & Structured Solutions at Standard Bank Group, joins CNBC Africa for more.
Wed, 22 Jan 2025 17:01:12 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Potential cut in aid and reduced health support budgets could challenge African economies
- Protectionist stance by Trump may lead to increased interest rates and inflation in the U.S., impacting African markets
- Positive trade prospects and growth opportunities may arise from partnerships with the U.S.
Markets in East Africa are facing uncertainty following the bold policy shifts introduced by U.S President Donald Trump. Daisy Anthea Nitwe, the Country Lead for Derivatives & Structured Solutions at Standard Bank Group, shared her insights on the potential impact of Trump's proposals on the African market during a recent interview with CNBC Africa. Nitwe highlighted key concerns such as the potential cut in aid to the continent, reduced budgets for health support, and the impact of a protectionist stance on the US economy on African markets. She also discussed the opportunities that may arise from trade partnerships with the U.S. Despite the risks, there are positive prospects for increased trade flows and partnerships. In terms of the East African markets' 2025 outlook, Nitwe emphasized the dependency on the U.S. policy stance and its impact on currency strength, monetary policies, and interest rates. She pointed out the divergence between Uganda and Kenya in terms of interest rate trends and highlighted the promising growth prospects within the region, ranging from 5% to 7%.
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