RFA Breakfast Paper - August 28, 2026
South Africa’s Private Sector Credit Growth Slows Further
South Africa’s private sector credit growth eased to 7.41% year-on-year in July 2026, from 7.77% in June, marking the softest pace since October 2025. The continued moderation in credit growth points to weaker private-sector borrowing activity and potentially softer domestic demand, consistent with the broader signs of subdued economic momentum. Slower credit expansion may also reflect the lagged impact of South Africa’s relatively restrictive monetary policy, with borrowing conditions remaining tight following the South African Reserve Bank’s policy tightening earlier in the year. Overall, the data suggest that domestic credit creation is losing momentum, which could weigh on household consumption and business investment in the near term.
U.S. Stocks Slip as Warsh Talks Tough
U.S. equities slipped on Friday after Federal Reserve Chair Kevin Warsh used his first Jackson Hole address to warn that inflation is not meaningfully slowing and that the central bank still has “work to do.” The S&P 500 fell 0.25% to 7,711.76 and the Nasdaq Composite lost 0.52% to 26,402.42, though both held weekly gains. Traders raised the odds of a September rate hike toward 50% from about 40% a week earlier, lifting the 10-year Treasury yield to 4.73% and pressuring rate-sensitive growth names.
NGX Rallies on FTSE Frontier Upgrade
The Nigerian Exchange extended its rebound on Friday, with the All-Share Index rising 0.90% to 241,298.47 as buying broadened across sectors. The move followed FTSE Russell’s confirmation that Nigeria will return to Frontier Market status on 21 September, a change expected to draw fresh passive inflows into large-cap names. Breadth was firmly positive at 33 gainers to 19 losers. The Oil & Gas index led with a 4.73% jump as Seplat Energy rose the daily limit of 10% to ₦12,320.60, while the Banking index climbed 2.34% to 2,544.92 on a near clean sweep led by FirstHoldCo. Market capitalisation added about ₦1.38 trillion to ₦155.83 trillion.
