During the last two years, global frontier markets have faced significant challenges on account of a confluence of major economic developments. The challenges, a reflection of the heavy macroeconomic pressure, were characterised by the tightening of the monetary policy environment, a sharp escalation of inflationary pressure and adjustment in foreign exchange across various markets.
The headwinds are majorly caused and compounded by escalating geopolitical tensions in certain regions, heightened investor uncertainty and risk aversion, dampening investor sentiment and reducing capital inflows into frontier markets.
