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Africa Advances in FATF Reforms as Key Economies Eye Grey List Exit
African countries are making notable progress in implementing Financial Action Task Force (FATF) reforms. Several nations, including Senegal, Ghana, Uganda, Tanzania, and Mali, have already exited the grey list following substantial improvements in anti-money laundering and counter-terrorist financing (AML/CFT) measures. Meanwhile, key economies such as South Africa, Côte d’Ivoire, the DRC, and Nigeria are undergoing on-site assessments, with possible delisting expected by October 2025 if evaluations are favourable. A successful exit would enhance financial credibility, attract more capital, and reduce transaction costs, while any shortfalls could extend their grey-listed status into 2026.
AfDB Sounds Alarm on Africa’s Currency Woes in 2025
The African Development Bank projects that 21 African currencies will depreciate against the U.S. dollar in 2025, citing weak export earnings, elevated borrowing costs, and geopolitical headwinds. Major economies like Nigeria, and Egypt are expected to see 6% or more declines. In contrast, Kenya, Morocco, and CFA franc zone countries may register moderate gains, supported by stable macroeconomic conditions and stronger capital inflows. The trend reflects growing divergence in currency performance, with implications for inflation, debt servicing, and the pace of economic recovery across the continent.
Africa Gains Duty-Free Access to China’s $17 Trillion Market
On June 11th, 2025, China hosted the latest ministerial Forum on China-Africa Co-operation (FOCAC), concluding with a landmark commitment. This includes full duty-free access to 100% of tariff lines for all 53 African countries with diplomatic ties. It also marks a shift from selective preferences to broad market access, offering new export potential, especially beyond mining. It also comes as the United States imposes average tariffs of 14–18% on most African exports, highlighting a stark contrast in trade posture between Beijing and Washington.
While the move reflects strong political alignment and growing trade volumes, structural imbalances remain. African economies still face competitiveness gaps in manufacturing and agriculture. However, China’s parallel investments in industrial capacity, green sectors, and digital infrastructure signal areas for long-term opportunity.
In this edition of the FDC Afriscope, we analyze burning macroeconomic and political issues in Africa, offering insights and strategies for policymakers.
Enjoy your read!
