AFRICA FINANCE IN BRIEF: Sovereignty, Capital & Shifting Alliances

Africa’s financial architecture is undergoing a quiet but consequential reset. Governments are reasserting control over strategic assets, leaning more heavily on capital markets to fund growth, and recalibrating currency and trade relationships amid tightening global financial conditions.

This week’s developments highlight how monetary sovereignty, fiscal pressure, and geopolitics are increasingly shaping economic decision-making across the continent.

Ethiopia moves to localise currency printing

Ethiopian Investment Holdings (EIH), the country’s $140 billion state-owned investment arm, plans to develop domestic currency-printing capacity as part of a broader push to build strategic national assets under public ownership.

If implemented, the continent’s second most populous nation would join a small group of African countries — including Nigeria, South Africa, Egypt, and Morocco — that print their own banknotes rather than relying on foreign firms.

Why it matters: Currency printing is a core pillar of monetary sovereignty. Ethiopia’s move reflects growing concern among African governments over supply security, foreign dependence, and cost control, especially after pandemic-era disruptions exposed vulnerabilities in outsourced banknote production.

Kenya launches $824m pipeline IPO in privatisation push

Kenya has opened the sale of a 65 percent stake in its state-owned oil pipeline operator, targeting KSh106.3 billion ($824 million) in what could become East Africa’s largest IPO in local currency terms.

The offering is expected to exceed the 2008 Safaricom IPO by shilling value, though not in dollar terms, due to currency depreciation.

Why it matters: The deal underscores Nairobi’s increasing reliance on domestic capital markets to fund infrastructure and ease debt pressures, setting a regional benchmark for large-scale privatisation as fiscal space tightens across Africa.

Saudi Arabia enters Sudan’s gold trade

Saudi Arabia plans to begin purchasing Sudanese gold immediately, as Khartoum seeks to redirect exports away from Dubai after years of sanctions, smuggling, and revenue losses. The move follows high-level engagement between Saudi and Sudanese officials at the Future Minerals Forum in Riyadh.

Why it matters: Gold is Sudan’s most important non-oil export, yet much of it leaks through informal channels. Saudi entry could formalise trade flows, challenge Dubai’s dominance and reshape Africa–Middle East commodity routes if similar arrangements emerge elsewhere.

Kenya, Zambia deepen yuan use as dollar pressure grows

Kenya and Zambia are increasingly settling trade, official transactions, and some debt obligations in China’s yuan, reflecting a broader African push to reduce exposure to the US dollar amid FX shortages and rising debt servicing costs.

The shift aligns with China’s expanding financial footprint across Africa’s infrastructure and resource sectors.

Why it matters: Currency choice is becoming a strategic tool for African governments managing liquidity stress, while reinforcing Beijing’s influence in the continent’s evolving financial system.

Nigeria’s SEC capital overhaul signals consolidation

Nigeria’s Securities and Exchange Commission has unveiled its most far-reaching capital reform in over a decade, raising minimum capital requirements by up to 40 times in some segments, with a June 2027 deadline. The new rules are expected to trigger consolidation, exits, and a leaner industry structure.

Why it matters: While aimed at strengthening market resilience and investor confidence, the reforms could significantly reshape Nigeria’s capital market, favouring well-capitalised firms and accelerating consolidation in Africa’s largest financial market.

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