News & Analysis: Financial markets

Frontier Debt Shines as Unlikely Haven in World of Rising Rates

“In terms of geography, money managers who specialize in frontier assets are almost united in favoring Africa, saying the region will benefit the most from rising raw material prices.”

via Bloomberg

The High Cost of Underrating Africa

“International credit-rating agencies perennially assign overinflated risks to Africa, irrespective of its improving macroeconomic fundamentals or the global economic environment. These ‘perception premiums’ are one of the region’s biggest development challenges.”

via Project Syndicate

IFC Partners with Djibouti-Based EAB Bank to Strengthen its Risk and Credit Framework

“A partnership signed today between IFC and Djibouti-based East Africa Bank (EAB) will help EAB better mitigate financial risks which have been amplified by the COVID-19 pandemic and improve its sustainability.”

via IFC

Chinelo Anohu: What the Future Holds for Attracting Investment to Africa

COVID-19 Africa Watch talks to Senior Director of the Africa Investment Forum, Chinelo Anohu, about how the COVID-19 pandemic has impacted the AIF’s approach and the overall investment landscape across the continent.

via COVID-19 Africa Watch

Surprising resilience: DFIs take stock of their COVID-19 response

“Many DFIs focused on supporting their existing clients through the crisis rather than finding new clients. Investing has been more challenging, but concerns that their balance sheets would take a hit didn’t materialize, nor did the type of demand they expected for liquidity support.”

via Devex

Yellen warns that slow vaccine rollout in poor countries poses threat to U.S., global economies

“Yellen called on richer countries to step up both economic and public health assistance to poorer nations reeling from COVID-19. She noted as many as 150 million people across the world risk falling into extreme poverty as a result of the crisis.”

via Washington Post

Frank Aswani: Strengthening Africa’s Social Investment Ecosystem to Help Tackle COVID-19

COVID-19 Africa Watch talks to Dr. Frank Aswani about ways to bolster Africa’s social investment ecosystem to help the continent’s economic recovery from the pandemic.

via COVID-19 Africa Watch

South Africa: COVID-19 caution infects investors

“Capital expenditure has been on the decline for years, but COVID-19 sent investment in machinery, factories and the tools of industry into a tailspin.”

via Mail & Guardian

Interview with Ladé Araba: Using Blended Finance to Tackle COVID-19 and Build Back Better

Ladé Araba, Managing Director for Africa at Convergence, talks to COVID-19 Africa Watch about blended finance’s potential role in building back after the pandemic, the core policy priorities, and her views on leadership.

via COVID-19 Africa Watch

Centum defers $27m investment plans as COVID-19 slows valuation

“Centum Investments Ltd has shelved negotiations for a US $27 million private equity investment over valuation concerns as the COVID-19 pandemic slows activity across emerging economies. The firm, listed on the Nairobi Securities Exchange and cross-listed on the Uganda Securities Exchange, is seeking to invest close to US $54 million in shares of private companies over five years.”

via The East African