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Africa

BBH: Frontier Sovereign Rating Model for Q1 2018

BBH produced the following ratings model to assess relative sovereign risk in Frontier Markets. A country’s score directly reflects its creditworthiness and underlying ability to service its external debt obligations.

Upturn for Nigeria’s Debt Capital Markets Threated by Election Uncertainty, Rising Oil Price

With fresh forecasts predicting a deceleration in the country’s economic contraction and borrowers making fresh strides in the local credit market, Nigeria is poised to make strong gains in 2018. Transforming those gains into longer-term sustainable growth will depend heavily on the country’s commitment to reforms, but with elections in the offing and oil prices rising, some analysts question its resolve for staying on the reform path.

Mixta Africa CFO Talks Long-Term Liquidity for Nigerian Corporates

The ability for real estate firms to raise long-term liquidity depends on a complex set of interrelated factors – interest rates and pricing, tenor availability, asset liquidity, and the health and sophistication of the mortgage market, to name a few. Benson Ajayi, CFO at Mixta Africa, one of the continent’s leading real estate firms speaks with Bonds & Loans about how the company is navigating these factors to optimise its capital structure.

Zimbabwe Recovery Huge Boon for Foreign Banks, Credit Markets – If Regulators Can Pull Off Reforms

With Zimbabwe’s infamous revolutionary-turned-dictator Robert Mugabe out and one of his main rivals left to pick up the pieces of an economy in tatters, the country’s prospects are anything but clear. Analysts are optimistic that policymakers can find a path to normalisation – creating significant opportunities for international and regional lenders, and the country’s credit markets, in the process. Tough decisions will need to be made.

Sunny Outlook for Egypt’s Renewables as DFIs Make Way for Commercial Banks

The first two stages of the Egyptian government’s solar and wind programme have been somewhat hit-and-miss, but increased development bank involvement sets the next stage on a path to encourage wider private sector participation. Third time’s a charm – but only if local and commercial lenders play their part, analysts suggest.

Are the World’s Top State-Owned Airlines in for Hard Landing?

As state funding dwindled for many airlines that traditionally relied on government for support, they have been forced to find new pools of liquidity – or face financial ruin in a sector that has seen major upheaval over the past year.

Kenya’s Credit Recovery in Question as Political Uncertainty, Interest Rate Cap Lingers

With private sector credit growth declines bottoming out, political volatility diminishing and key sectors performing better, organisations on the ground in Kenya are cautiously optimistic about their 2018 prospects. Downside risks remain, however – and many of them revolve around debt.

Stanbic Kenya: Political Volatility Will Moderate in 2018, Boosting Debt Capital Markets

Private sector credit growth slowed to record lows this year, but there is reason to believe many of the factors driving this – a drought-induced economic slowdown, political volatility, and an interest rate cap – will moderate in 2018. Wegoki Mugeni, Stanbic Kenya’s head of debt capital markets for East Africa, shares her views on why this is likely to create a supportive environment for more bond issuance.

How African Microfinance Lenders Can Gain Access to Capital Markets

Microfinancing institutions (MFIs) have for years played a key part in driving growth in Sub-Saharan Africa. As investment needs and businesses grow, finding and establishing new channels of funding is becoming a top priority for MFIs – and the debt capital markets could be the answer.

Can South Africa Get its Fiscal Groove Back?

With real GDP growth at near zero and fiscal projects trending downward, it’s unsurprising Standard & Poor’s didn’t wait for the ANC leadership contest in late 2017, or the next budget release, to cut the country’s credit rating to junk. The real question now is: how quickly can the country reverse course?

 

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