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Standard Chartered: Africa and Kenya Positioned for Resilience and Growth in 2025. Strategic investments, innovation, and fiscal reforms to shape the region’s economic outlook

           
Standard Chartered Bank 2025 Global Market Outlook highlights key global and regional economic trends. Despite a projected slowdown in global growth to 3.1% from 3.2% in 2024, Africa and Kenya are expected to remain key drivers of resilience and innovation, supported by strategic investments, sectoral diversification, and proactive fiscal policies.

Africa’s growing economic significance, with several countries leading the way in 2025. Benin, Côte d’Ivoire, and Ethiopia are forecasted to achieve some of the continent’s strongest growth rates, driven by industrial expansion, infrastructure development, and hydrocarbon production. Investment momentum across Africa continues to strengthen, with infrastructure projects and industrial initiatives attracting foreign, domestic, and public-private partnerships. Resilience in key sectors, such as Botswana’s diamond industry, Côte d’Ivoire’s hydrocarbons, and Mauritius’s tourism, highlights the continent’s ability to adapt and thrive in a complex global environment.

Kenya, East Africa’s innovation hub, is expected to play a pivotal role in the Africa’s economic progress. With a GDP growth forecast of 4.7% in 2025, Kenya is leveraging advancements in digital technology, energy, and transport infrastructure to enhance regional connectivity and trade. These efforts position the country as a leader in economic transformation, underpinned by sound fiscal and monetary policies.

Despite these positive developments, Kenya faces fiscal consolidation challenges as the IMF programme concludes in April 2025. The country’s debt-to-GDP ratio, currently at 72.4%, underscores the need for sustained fiscal reforms to manage deficits, projected at 4.8% for FY25 and 4.6% for FY26. Improved inflation management, supported by a stable Kenyan Shilling and lower oil prices, is expected to drive inflation down to 4.7% in 2025, creating room for potential monetary policy easing.

Paul Njoki, Head of Wealth and Affluent Banking, Kenya and East Africa, said, "Kenya’s commitment to innovation and investment in wealth continues to create a resilient foundation for growth. As we navigate a complex global environment, Standard Chartered is dedicated to supporting clients in achieving their financial goals.”

Globally, the economic outlook for 2025 reflects significant challenges and opportunities. In the US, President Trump’s “America First” policies are expected to drive inflation and boost domestic growth, with US equities projected to outperform other regions. Europe, however, continues to grapple with economic fragility, as Germany and France face recession risks amid rising energy costs and renewed trade tensions. In Asia, China’s economy is forecast to grow at 4.5%, supported by government stimulus aimed at mitigating the impact of US tariffs.

Strategic investments in global equities, gold, and high-yield bonds are expected to present key opportunities in 2025. Investors are encouraged to adopt disciplined and diversified strategies to capitalize on market trends while safeguarding against potential risks, such as inflation surprises or shifts in monetary policy. Standard Chartered remains optimistic about Africa and Kenya’s long-term economic potential, emphasising the importance of sustainable reforms, infrastructure development, and regional cooperation in driving growth.

Standard Chartered remains optimistic about Africa and Kenya’s long-term economic potential, emphasising the importance of sustainable reforms, infrastructure development, and regional cooperation in driving growth. By aligning global trends with regional strengths, the Bank is well-positioned to support clients and communities in achieving their goals in 2025 and beyond.

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