The IMF and World Bank approved Sudan’s eligibility for debt relief under the HIPC Initiative in recognition of the significant reforms implemented by authorities. We expect growth to pick up and fiscal and external imbalances to reduce as the country reintegrates into the international community.

Renewed pandemic containment measures weigh on economic activity in Kenya and Uganda. Low vaccination rates due to supply constraints make a stop-and-start recovery more likely. Benign inflation dynamics have allowed the BoU to continue its accommodative policy stance. However, real interest rates are still attractive and foreign capital has flown into the local market. This has supported the UGS, which continues to appreciate in nominal and real effective terms.