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The Deloitte Stability Index 2023

Our Turnaround & Restructuring team developed the Deloitte Stability Index (“DSI”) 2023, which measures the financial stability of African listed companies based on leading financial indicators for the H2 FY22 period, so that action can be taken sooner rather than later.

In this edition of the DSI, we explore how “The Squeeze Scenario” is impacting the profitability and debt capacity of companies across Africa.

Key highlights:

  • Inflation across many African jurisdictions have reached levels not seen since the global financial crisis.
  • Most central banks have responded with a sharp tightening of monetary policy.
  • These two factors have caused an acute cost of living crisis that we have named “The Squeeze Scenario”.
  • Runaway inflation and historically high interest rates in Ghana and Nigeria mean the Squeeze Scenario is felt most in these jurisdictions. South Africa’s sensitivity to the Squeeze Scenario is largely driven by retail, real estate and construction.
  • High inflation and interest rates may put highly geared sectors such as power and real estate under strain, while margin-pressured sectors such as healthcare and hospitality could also feel the pinch.

The DSI covers ten jurisdictions across Africa including Botswana, Ghana, Kenya, Malawi, Namibia, Nigeria, South Africa, Tanzania, Uganda, Zambia. Download the report and discover country-specific views and defensive strategies to counter “The Squeeze Scenario”.

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