The report suggests that while regional banks are not directly exposed to the tariffs themselves, the broader economic consequences, particularly the potential slowdown in global trade, could strain financial systems across the continent.

One of the key concerns raised by Moody’s is the possible impact on China, a top trading partner for many African nations and a leading buyer of the region’s commodities. Any downturn in Chinese demand could weigh heavily on African economies that rely on exports, ultimately feeding through to the banking sector.

“Indirect effects, such as tighter global financial conditions and weaker demand from China, could still have material implications,” the agency noted.

Higher funding costs and slower economic growth could add to the challenges faced by banks in a region already contending with inflation, currency fluctuations, and fiscal constraints.

-- Reuters/ChannelAfrica--