African stock markets showed mixed performances this week, with notable gains for some exchanges and instabilities for others. The Nigerian Stock Exchange continues to outperform, recording a rise of +5.07%, bringing its July performance to +16.57%. MTN Nigeria dominated, with a 20.00% increase in its market capitalization. The Nigerian market remains strong and largely supported by the growth of telecommunications and mobile financial services. In Malawi, the Lilongwe Stock Exchange (MSE) saw an impressive surge with a gain of +5.03%, bringing its annual performance to +128.49%, supported by a significant rebound of Standard Bank Malawi (+34.31%).
The Ghanaian Stock Exchange rose by +4.82%, thanks to a historic 300 basis point reduction in its benchmark rate. MTN Ghana and Republic Bank were the drivers of this upward trend. On the other hand, the Central African Stock Exchange lagged behind as the much-anticipated IPO of BGFI Holding on the BVMAC was indefinitely postponed due to tensions between shareholders and a pending court decision. The Casablanca Stock Exchange, meanwhile, had a more modest performance, staying stable without major gains, while the BRVM rose by +0.55%, supported by companies like Unilever CI (+43.37%) and Alios Finance (+23.74%).
Meanwhile, metals recorded a strong increase this week, supported by global demand and supply chain pressures. Gold, in particular, saw a notable rebound, attracting investors’ attention in an increasingly volatile global economic context.
Behind these stock market gains, public debt remains a major concern for several African countries. In an environment marked by high global interest rates, African governments are facing challenges to maintain economic stability without increasing fiscal pressure, risking fueling social and political tensions. OPEC+ announced an increase in oil production of 547,000 barrels per day in September, contributing to a drop in the price of Brent crude below $70. This dynamic has a direct influence on the global economy and, by extension, on African stock markets.
Outside the continent, the unexpected resignation of Fed Governor Adriana Kugler to focus on teaching created shockwaves, giving Donald Trump the opportunity to strengthen his position within the institution with the appointment of a new member. This comes amid growing geopolitical tensions, particularly with Russia. The deployment of nuclear submarines by the United States, following provocative statements by Dimitri Medvedev, revived demand for gold this weekend, highlighting the instability of international relations.
Thus, August 2025 remains a month marked by a constantly evolving global economic environment, where local reforms, commodity developments, and geopolitical decisions continue to influence the direction of African stock markets.
