Foreign debt, oil prices hit East Africa markets

East African stock markets faced a difficult year and the situation is unlikely to change in 2019, with analysts citing the region’s increased exposure to foreign debt as a risk.

Global research firm Focus Economics has warned that emerging and frontier markets are at the risk of heightened volatility in their financial and equity markets and a sizeable currency depreciation in 2019, largely due to higher yields in the United States, increase in oil prices and increased exposure to foreign debt.

The firm notes that increased oil prices are putting pressure on some oil-importing countries, worsening their current account positions while higher yields in the US are likely to cause foreign investors to sell off their stocks in African markets.

Source: East African

 

Share

SUBSCRIBE TO LATEST ENERGY NEWS

Read the latest energy industry news and researched articles
for oil and gas, power generation, renewable energy, events and more...