Pan African Business Index - Hits an 11-Month High
Pan African Business Report - September 2026
Unique African Business Index
The Pan African Business Sentiment Index (PABSI) is a monthly and quarterly composite developed by Business Tech Africa, that scores business conditions across Africa on a −10 to +10 scale. The PABSI covers all 54 African states
What sets PABSI apart is the breadth of inputs and the single comparable output. It combines 15 indicators spanning real activity, prices and policy, trade and external balances, funding and investment, and the operating environment (stability, logistics, security). Each country receives a −10 to +10 score that can be read against the same scale used for every other state and for the continent as a whole. The weather-style labels (Sunny, Partly Cloudy, Cloudy with showers) translate the number into a practical signal without requiring an economics background.
For businesses, this means one framework can be used to screen markets, track relative momentum, and flag risks such as inflation, logistics bottlenecks or funding conditions before capital is committed.
It draws on 15 indicators covering real activity, prices and policy, trade and external balances, funding and investment, and the operating environment. Each country and region receives a single reading that shows whether conditions are improving or deteriorating, together with the main drivers. Businesses use the index to compare markets, time entry or expansion decisions, and track risks such as inflation, logistics bottlenecks, or funding conditions before committing capital or resources. The consistent framework makes it easier to see where momentum is building and where caution is warranted.
The 15 indicators fall into five groups: real activity (GDP growth, industrial/manufacturing output or PMI where available), prices and policy (inflation, policy rate stance, fiscal balance), external and trade (export growth, terms of trade, current account), funding and investment (FDI, private credit growth, startup or project finance where tracked), and operating environment (political stability, security/conflict intensity, rule of law, logistics/infrastructure, and basic crime or business-risk indicators).
What Happened in September?
In September 2026 the Pan African Business Sentiment Index closed at −0.40, continuing the recovery from the first-half year trough and reaching its highest reading since October 2025.
East Africa remained the strongest region, supported by steadier activity in Kenya and Ethiopia. Southern Africa improved as South Africa’s Absa manufacturing PMI rose to 50.7, the first reading above 50 since May, driven by a rebound in new orders. West Africa held gains from Nigeria’s refining and services momentum. North Africa stayed weaker, with Egypt’s private-sector PMI still below 50. Mining output in South Africa contracted sharply, while higher fuel costs and logistics delays continued to weigh on operating conditions across several markets. Funding and trade indicators improved modestly.
