It is that time of the month that Markit Economics shares the private sector pulse for African nations. One thing that stands out is that COVID19 disease effects are still evident in headline readings for most African nations that track the index. Jurisdictions have implored health safety protocols and partial to full lockdowns which has dented growth through suppressed manufacturing activity. We take a look how Zambia, Nigeria, Ghana, South Africa, Mozambique and Egypt have performed in the month of May.
ZAMBIA. The copper producer slid 2.5 index points to the lowest ever in history since the index tracking began. Headlining 34.8 for May, the copper producer still battles with partial lockdown effects locally while the effects of a full lock down from South Africa its largest trade partner adversely weighed delivery of goods over the period. Zambia has successively contracted for 15 months driven by other persistent factors, such as lack of liquidity, energy price risks and weak currency, which disease pandemic amplified. May was characterized by falling input costs and prices as aggregate demand shriveled.
GHANA. The cocoa and gold producers private sector health rallied 15 index points to 46.7 in May despite solid deterioration in business activity. Ghana’s moments is steadily coming back as the Anglophone West African nation reopens its economy following a lockdown that caused supply disruptions.
NIGERIA. Still dealing with double whammy effects of disease pandemic and depressed economic activity as crude prices remained suppressed, Nigeria improved 3.6 index points to 40.7 for May. Rising crude prices following the OPEC+ meeting on the 04 June which could see the oil cartel extend supply curbs which could spell brighter prospects for Africas most populous economy.
SOUTH AFRICA. The continents most industrialized economy is still bearing the brunt of a total lockdown which until a week ago was moving towards an ease to allow the economy to breath, May readings slid deeper in contraction to 32.5 from 35.1 as disease pandemic effects amplified the already existing power bottlenecks and a struggling economy whose currency remains volatile and inflation on the rise.
MOZAMBIQUE. Sharp outputs and contractions continue to weigh factory pulse in Mozambique. May reading is the second lowest reading since PMI tracking commenced in 2015 for Mozambique. Business disruption effects making deliveries slower with widened lead times affected the private sector as a result of quarantine protocols. Mozambique headlined 40.0 from 37.1 in April.
EGYPT. Despite the North African economy having seen the worst of disease pandemic, conditions still point to anemic growth. Activity in the non-oil private sector rose to 40.7 from 29.7. Egyptian firms were caught up between shut downs, muted activity and some re-opening resulting in marginal manufacturing activity.
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