Policy & Government
Nigeria’s FX policy deters investors, may lead to corruption
Foreign investment to Nigeria remains stagnant as the country’s FX problem persists despite a partial devaluation of the naira. Although the country has the reserves to partially prop up the naira at the official rate for some time, in the long-run the system is unsustainable, while the mismatch between the parallel and official rates presents too many opportunities for corruption.
26 Oct 2016
Kenya’s Treasury exploring potential yen, yuan borrowing
The Kenyan government may look to tap the yen and yuan markets to enable to country to access new pools of investors. Although China is likely to remain the dominant lender to the country, its relatively strong fundamentals versus its peers mean it will likely be one of the more preferred investment destinations across Africa for investors globally.
19 Oct 2016
Saudi $2bn deposit edges Egypt closer to IMF loan
Cairo is closing in on a relief loan that could provide the vital lifeline to Egypt’s stagnant economy, but the strict terms of the deal mean that the road to recovery will be painful.
17 Oct 2016
Asian economies ride high despite banking sector concerns
Global economic growth is faltering, but Southeast Asia remains one of the few regions with a largely positive outlook. The Association of Southeast Asian Nations (ASEAN) states continue to grow at a rate above the global average, but rising debt levels and an underperforming banking sector could undermine their progress.
7 Oct 2016
India’s corporate bond market, banking sector parting ways
The Reserve Bank of India’s deputy governor has noted that bank financing should not be overlooked in the development of the country’s corporate bond market. The high levels of leverage in the sector have prompted the country’s FIs to de-couple from the corporate space, whilst reforms in the local markets are prompting corporates to source non-bank funding.
29 Sept 2016
Poland’s fiscal consolidation: tying ambition to reality
Investment into the sixth largest European economy amounted to just 16.7% of GDP in second quarter of 2016, down by 1.4% year-on-year. As the Polish government gears up to carry out the economic reforms promised during the PiS party’s election campaign, the sombre reality of falling investment and rising fiscal deficit may curb those ambitions.
29 Sept 2016
Venezuela loses another lifeline
With the cutting of Chinese funding from Venezuela’s dwindling economic lifeline, the country edges closer to default. Nevertheless, China’s financial aid is likely to only go so far, and long awaited structural reforms are in need. A replacement of the current administration, if successful, would prove a boon for the country’s assets and would be welcomed by the international community, however…
14 Sept 2016
Turkey: An Economy in Need of Transformation
Without a strong revival on the fixed income investment outlook for Turkey, analysts remain bearish on the country’s prospects. As Turkey’s relatively young population moves into the workforce en masse, hopes for the country’s longer-term prospects hinge on confidence in an economic and structural evolution long overdue.
13 Sept 2016
New UAE bankruptcy laws a big positive for issuers and borrowers
Distressed SMEs in the UAE have struggled to attract capital, and are often harshly treated under current bankruptcy laws, which are also insufficient to deal with large corporations. The introduction of new insolvency laws is likely to increase investor participation in the financing of SMEs through removing the stigma of bankruptcy and by providing chances for recovery for distressed entities,…
8 Sept 2016
African PPP see disparities between SSA, East and West
The infrastructure deficit in Africa requires significant investment to reverse. PPPs are an effective method to bring in additional private capital to projects, but their use is relatively thinly spread across the continent.
7 Sept 2016