Africa did not record any major improvements in several of its markets throughout the year. Rising prices in basic goods such as food and energy will define the year, with economists predicting a similar or even worse outcome in 2023.
However, some countries on the continent ended the year with some good news. Economic performances across the continent fluctuated with some ending the year on a high note, and others recording less fortunate fortunes.
If this is any indication, Africa may experience some form of economic recovery in 2023, but this is a more delicate situation.
Regardless of how sensitive the projections are, some do not take into account the fact that the African economy has experienced a drop in its inflation rate, after months of rising surges.
According to data from Trading Economics, a financial data platform that sources its data from the National Bureau of Statistics of each of the following countries, approximately 17 countries experienced a decline in their inflation rate. Other African countries have experienced increases in inflation or have not released data for their inflation reports.
Some of the countries listed below have shown significant improvements in their economies, while others have recorded minimal improvements in their economies.
Below are 17 countries and how much success they have experienced in the last month of 2022.
Angola: Angola’s inflation rate has hit its lowest level since 2015. Angola’s annual inflation rate decreased for the 11th straight month to 13.86% in December 2022 from 15.24% in the previous month. This was the lowest reading since November 2015, amid a steady month of Kwanzaa. On a monthly basis, consumer prices increased by 0.87% in the seven months after increasing by 0.82% in the previous month.
Namibia: The annual inflation rate in Namibia decreased for the second straight month to 6.9% in December 2022 from 7% in the previous month. This is the lowest reading since July 2022, due to a slowdown in transport prices (14.8% vs 18.3% in November), namely public transport services (1.4% vs 7.1%).
Niger: The annual inflation rate in Niger decreased to 3.1% in December 2022 from 3.5% in the previous month.
Mozambique: The annual inflation rate in Mozambique decreased for the fourth consecutive month to 10.91% in December 2022 from 11.25% in the previous month. This was the lowest reading since June 2022, amid a general slowdown in prices of goods and services, including food and non-alcoholic beverages.
Burkina Faso: The annual inflation rate in Burkina Faso decreased sharply to 9.6% in December 2022 from 12.2% in the previous month.
Cape Verde: The annual inflation rate in Cape Verde fell to 7.6% for the fifth month in December 2022, down from 8% in November and a 14-year high of 9% in July. It recorded softer inflation since April 2022 due to slowdown in food and non-alcoholic beverages prices.
Ethiopia: The annual inflation rate in Ethiopia eased to 33.8% in December 2022, from a six-month high of 35.1% in the previous month. Food inflation eased slightly (32.9% vs 34.2% in November), thanks to higher cereal product prices and lower prices of edible oil, meat, milk and eggs.
Kenya: Kenya’s inflation rate slowed for the second consecutive month to 9.1% in December 2022, the lowest since August compared to 9.5% in November. The YYY increase was mainly due to rising costs of food and non-alcoholic beverages (13.8%), namely corn grain-loose and fortified cornmeal; Transport (13.0%), namely country bus; and housing, water, electricity, gas and other fuels (6.2%).
Nigeria: The annual inflation rate in Nigeria eased to 21.34% in December 2022, down slightly from a 17-year high of 21.47% in the previous month. This follows ten consecutive months of monthly increases amid slight declines in food prices (23.75% and 24.13% in November), which is more relevant in the CPI basket. Prices of alcoholic beverages, tobacco and cola (18.10% vs 18.48%) rose less; clothing and footwear (17.55% vs 17.66%); Entertainment and Culture (15.74% vs 16.61%) and Communication (11.2% vs 11.54%).
South Africa: South Africa’s annual inflation rate was 7.2% in December 2022, down from 7.4% in the previous month as expected, but still above the South African Reserve Bank’s target range of 3%-6%. This was the softest reading since last May, as prices continued to slow primarily for transportation (13.9% vs 15.3% in November), including fuels (22.8% vs 25.3%).
Sudan: Inflation rate in Sudan decreased from 88.80 percent in November 2022 to 87.30 percent in December.
Tanzania: The annual inflation rate in Tanzania eased slightly to 4.8% in December 2022, from a five-year high of 4.9% in the previous month. In Tanzania, the National Consumer Price Index (NCPI) measures the change over time in the price of a fixed basket of goods and services purchased by a representative sample of households.
Rwanda: The annual inflation rate in Rwanda eased to 31.7% in December 2022, from 33.8% in the previous month. Prices of food and non-alcoholic beverages (59.2% vs 64.5% in November), namely vegetables (91.2% vs 99.1%) and bread and cereals (52.3% vs 58.3%); housing and utilities (13.1% vs 14.6%); furniture and home appliances (16.1% vs 17.8%) and transportation (9.9% vs 10.6%).
Senegal: The annual inflation rate in Senegal eased to 12.8 percent in December 2022, down from 14.1 percent in the previous month, a record-high since at least 2006. It was the first slowdown in consumer prices since March as costs of food and non-alcoholic beverages (18.8 percent and 21.4 percent in November) and transportation (2.2 percent and 2.6 percent) rose at a slower pace. On a monthly basis, consumer prices fell 1 percent, after a 0.2 percent gain a month earlier.
Seychelles: The annual inflation rate in Seychelles decreased for the third straight month to 2.53% in December 2022 from 2.62% in the previous month. This was the lowest inflation rate since June amid slower prices for non-food products (2.44% vs 2.61% in November), transport (0.29% vs 1.74%); and other food, excluding fresh fish (2.49% vs 2.52%), mostly oils and fats (11.79% vs 15.33%).
to go: Inflation rate in Togo decreased from 8.70 percent in November 2022 to 7.70 percent in December. In Togo, the main components of the consumer price index are: food and non-alcoholic beverages (32%), restaurants and hotels (15%), and accommodation and utilities (12%).
Uganda: Uganda’s annual inflation fell to a three-month low of 10.2% in December 2022, compared to 10.6% in November. Prices for transportation slowed (1.5% vs. 5.1% in November); furniture, household appliances and daily household (14.3% vs 15.1%); and alcoholic beverages, tobacco and drugs (8.0% vs 8.7%).