Pan-African Business Sentiment Index – May 2026 Released

PABSI May 2026: First Signs of Stabilisation After Prolonged Decline

The latest Pan African Business Sentiment Index (PABSI) for May 2026, released today, brings a cautious but welcome development. The continental score improved to -1.8, up from April’s -2.1. This marks the second consecutive month of recovery and the first notable lift after nine straight months of decline.

While the overall business environment across Africa remains “Cloudy with possible showers,” the marginal uptick signals early stabilisation in parts of the continent. East Africa continues to anchor confidence, while several mid-tier markets are showing resilience.

Top Performing Regions

East Africa maintained its lead with an average score of +3.3, driven by strong services, tourism recovery, and infrastructure momentum. Kenya, Ethiopia, and Rwanda once again dominated the top country rankings. Southern Africa posted the largest regional gain, moving to +1.2 on the back of manufacturing improvements in South Africa.

Key Winners This Month

• Kenya strengthened its position at the top with a score of +4.5.
• South Africa recorded one of the most notable improvements, benefiting from a manufacturing PMI rebound.
• Several mid-tier markets including Senegal, Ghana, and Tanzania showed positive movement, reinforcing the attractiveness of diversified exposure.

Losers and Persistent Challenges

Larger economies such as Nigeria and Egypt remained in negative territory, weighed down by currency volatility and structural issues. Central Africa continued to lag significantly due to ongoing conflict and governance challenges.

What the May Report Highlights

The data reveals a continent where selective optimism is justified. While external shocks (fuel costs, shipping disruptions, and geopolitical tensions) continue to cap upside, improving sentiment in key growth corridors suggests that targeted strategies can yield results. The report also underscores the growing importance of mid-tier markets as more stable alternatives to the traditional giants.

For African entrepreneurs, investors, and business leaders, the May PABSI reinforces a core message: in the current environment, geographic and sectoral selectivity matters more than ever. East Africa remains the standout performer, but opportunities exist for those willing to look beyond the obvious destinations.

This modest improvement after a long decline offers a moment of cautious hope — but also a clear reminder that disciplined risk management and strategic focus will define success in the months ahead.

The full May 2026 PABSI report contains detailed country rankings, 12-month trend analysis, sector signals, and practical recommendations. It is available for free download upon registration on the Business Tech Africa platform.

To Download the PABSI April Report – Click here