The dramatic divergence between equity returns in local and foreign currency terms stems from Egypt’s recent currency crisis. The Bigger PictureDespite the currency challenges, many African stock markets have shown impressive performance in local currency terms in 2024. Balancing Growth and StabilityThe divergent fortunes of African stock markets in 2024 underscore the complex challenges facing the continent’s economies. While many countries are seeing robust economic growth and booming local stock markets, currency instability threatens to undermine these gains in the eyes of international investors. As Africa continues to develop and its financial markets mature, addressing currency stability will be key to unlocking the full potential of the continent’s stock markets.

Source: The North Africa Journal July 24, 2024 21:14 UTC