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Re-Elected Trump and Africa: A New Engagement Approach

The second Trump presidency that will commence in January 2025 has sparked discussions about its potential impact on U.S.-Africa relations. During his first term, Donald Trump’s policies toward Africa were largely characterized by limited engagement and a focus on countering China’s growing influence on the continent. However, as he is re-elected, several themes are likely to emerge. For instance, Trump’s transactional, over-geostrategic approach to economic diplomacy agreements will result in direct deals with specific African countries. The approach might prioritize nations with significant U.S. trade and investment interests, such as Nigeria, Kenya, and South Africa.

2024 Sees Global Rate Cuts as Inflation Eases Across Major Economies

The year 2024 is marked by inflation easing enough to enable monetary policy loosening, especially in most advanced economies. By the end of 2024, at least 22 central banks, covering two-fifths of the global economy, will have determined their borrowing costs. The outcome is expected to highlight the growing disparity in the pace of policy easing, as central banks weigh differing economic risks heading into 2025. Across sub-Saharan Africa, central banks have been actively adjusting interest rates to manage inflation and stimulate economic growth. African central banks are employing a range of monetary policy tools to navigate the complex interplay of inflation, economic growth, and external factors such as global commodity prices and currency fluctuations.

In this edition of the FDC Afriscope, we analyze burning macroeconomic and political issues in Africa and around globe, offering insights and strategies for policymakers.

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