DEBT PRESSURE

Africa: Banks under pressure as inflation eroding household income

By Xolisa Phillip, in Johannesburg

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Posted on January 4, 2023 13:20

© Signage is seen outside the Moody’s Corporation headquarters in Manhattan, New York. REUTERS — Signage is seen outside the Moody’s Corporation headquarters in Manhattan, New York. REUTERS

Prevailing high inflation and rising interest rates will likely push banks in Africa’s largest economies to tighten lending and increase provisioning, says Moody’s Investors Service.

In a recently published note on African banks, Moody’s warns that higher inflation and interest rates will dent investment and economic activity on the continent.

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