The CPIS Risk Index continues to deteriorate in Q2, led by the UK’s Brexit. In Africa, Egypt, Angola and Mozambique all suffered downgrades. Africa economies continue to struggle with a downturn in commodity prices and political uncertainty.
In North Africa, Egypt’s already ‘very high risk’ rating, was downgraded by one quartile to DB6c, in response to increased economic and political risk. Sub-Saharan Africa’s overall risk score worsened over the second quarter of 2016 (to 5.544, from 5.526 in Q1).
In Southern Africa, The drop in commodity prices and export revenues, weighted heavily on Angola and Mozambique. In May, Dun & Bradstreet downgraded Angola from DB5d to DB6a, and Mozambique was downgraded from DB4d to DB5a.
However, Cote d’Ivoire is bucking the trend in Africa, and the country’s rating was upgraded from DB6a to DB5d. The West African nation’s improved political and economic situation since the disputed elections of 2010/11, was a key contributing factor in the rating upgrade.
The report notes that Brexit’s immediate impact on Africa has been limited; however uncertainty could increase in the future. The CIPS Risk Index is undertaken by Dun & Bradstreet’s economics team.