News & Analysis: Financial markets

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

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

Moody’s downgrades Namibia’s ratings to Ba3, maintains negative outlook

“The coronavirus shock continues to pressure Namibia’s revenue generation capacity, a trend exacerbated by Namibia’s weak growth prospects, notwithstanding moderate institutional adjustment capacity and external buffers that backstop creditworthiness.”

via Moody's

Interview: Dr. Youssef Boutros-Ghali on COVID-19, Debt Sustainability, and Macroeconomic Policy in Africa

COVID-19 Africa Watch talks to Dr. Youssef Boutros-Ghali, former Finance Minister of Egypt and former chairman of the IMF’s International Monetary and Financial Committee, about the economic impact of the pandemic, the policy response, SDRs, and more.

via COVID-19 Africa Watch

COVID-19 hits African private equity exits

“The pandemic has exposed some of the African private equity industry’s inherent weaknesses. Weak exit environments, political risk and currency fluctuations have all been exacerbated by the pandemic, and African governments are unlikely to offer financial assistance to distressed companies.”

via African Business Magazine

It’s way past midnight for the South Africa project

“The coronavirus is mostly to blame for the recent collapse, the deterioration in SA’s economic and fiscal strength over the past decade is not the result of external shocks but the government’s failure to change its approach to managing the economy.”

via Financial Mail

East Africa: COVID-19 invades banks, slows down earnings

“Banks’ performance was largely impacted by increased provision on loans and advances in the wake of increased risk of credit default associated with the COVID-19 pandemic.”

via The East African

Zambia heads toward Africa’s first post-COVID default as debt deadlines loom

“The clock is ticking down on Africa’s first post-COVID sovereign default, as Eurobond holders wait to see whether Zambia will make an overdue debt payment while the government hopes creditors have granted it a payment deferral.”

via Reuters

Zambia Nears Default With Bondholders Set to Refuse Relief

“A key bondholder group is set to reject Zambia’s request for an interest-payment holiday, putting the country on course to become the first African sovereign defaulter since the onset of the coronavirus pandemic.”

via Bloomberg