Here are the top five stories for the week
Diamond slump pushes Botswana to weakest credit rating since 2001
Botswana has suffered a sovereign credit downgrade after a prolonged slump in global diamond demand weakened government revenues and fiscal stability. S&P Global Ratings lowered the country’s long-term credit rating to BBB- from BBB, while cutting its short-term rating to A-3 from A-2 and maintaining a negative outlook, signalling the risk of further downgrades if fiscal pressures persist. The downgrade places Botswana at its lowest investment-grade rating since 2001.
Why it matters: The country has long been regarded as one of Africa’s most fiscally stable economies. The downgrade underscores how reliance on diamonds is exposing the country to global commodity cycles and could raise borrowing costs if fiscal pressures worsen. African economies raise fuel prices as Middle East crisis drives oil higher
Several African countries including Nigeria, Egypt, Ethiopia and Zimbabwe have raised domestic fuel prices as global oil markets surge following escalating geopolitical tensions involving Iran. The ongoing United States–Israel conflict with Iran, which began on February 28, has pushed global crude prices above $100 per barrel. The crisis has disrupted tanker traffic through the Strait of Hormuz, a key shipping route that carries roughly 20 percent of global oil supply.
Why it matters: Higher oil prices threaten to reverse the disinflation trend across several African economies and could force central banks to delay interest-rate cuts while putting pressure on government budgets.
Absa eyes African expansion as profits rise 12%
Absa Group is accelerating its expansion across the continent as operations outside South Africa become the bank’s fastest-growing segment. Kenny Fihla, the group chief executive Kenny said the lender is targeting growth in regions such as East Africa, which is increasingly seen as a strategic trade corridor connecting Africa with the Middle East and Asia. The push comes as several European lenders scale back operations in parts of Africa, opening opportunities for regional banks to expand. Why it matters: African banks are stepping in to fill the gap left by retreating international lenders, reshaping the continent’s financial landscape and supporting regional trade and investment flows.
Turning Africa’s trade potential into reality
Africa has the world’s youngest population, vast mineral resources and rapidly expanding technology ecosystems. Yet the continent still plays a limited role in global trade structures, often exporting raw materials while importing higher-value manufactured goods.
Why it matters: Unlocking Africa’s trade potential—particularly through initiatives like the African Continental Free Trade Area (AfCFTA)—could boost industrialisation, expand intra-African trade and strengthen the continent’s role in global supply chains.
Zenith Bank shares surge after London listing signal Shares of Zenith Bank Plc, Nigeria’s most valuable lender, climbed nearly eight percent after the bank signalled plans to list on the London Stock Exchange by 2027 to expand access to global capital. Why it matters: A potential London listing would deepen Zenith Bank’s access to international investors and reflects a broader trend of African banks seeking global capital to fund expansion and cross-border trade.
Chart of the Week
Join BusinessDay whatsapp Channel, to stay up to date Botswana’s credit rating has been cut amid a slump in diamond revenues, several African economies are raising fuel prices as oil surges following the Iran conflict, and banks across the continent are pursuing new growth opportunities and global capital. Meanwhile, Nigeria’s Zenith Bank rallied after signalling plans for a London listing, highlighting investor appetite for African financial stocks.
The stock rose by 7.91 percent pushing its market value to N4.58 trillion ($3.3 billion), overtaking GTCO’s N4.32 trillion($3.1 billion).
