Africa
Could lending restart in Zimbabwe?
Zimbabwe could soon reach an agreement to repay arrears owed to foreign institutions. Although the move could kick-start lending in the country, political changes will likely be a key factor for foreign FIs as they mull any shift in their operations.
23 Jun 2016
Naira drop hits investments and lending with mixed results
The relaxation in Nigeria’s FX policy has led to a significant devaluation of the naira. Investment will still likely be slow on the local currency side, but foreign currency investment could soon rise. Nigeria’s banking sector will likely suffer in the short term from the naira’s devaluation, but could see a pickup in the long term through dollar inflows.
22 Jun 2016
Africa’s foreign funding dilemma
Although many African borrowers encounter difficulties when borrowing in foreign currencies due to oil prices, exchange rates and high levels of leverage, multilateral lending does provide access to wider funding, and the sukuk markets could widen a borrowers’ investor base.
17 Jun 2016
Mozambique keeping its head above water… just
Mozambique’s ability to prevent a default is looking increasingly tenuous as the government struggles to cover its quasi-sovereign loan repayments. Investor confidence in the country has been significantly dented, and despite remaining surprisingly resilient, government bonds are likely to be hit hard by headline news risk, especially from the IMF.
10 Jun 2016
Nigeria’s FX policy won’t harm foreign bonds
Nigeria’s Eurobond roadshow in London has demonstrated that there would be appetite for a sovereign bond, despite lingering concerns over the country’s FX policy among investor and unwillingness on the Nigerian side to fully devalue the naira. Although local debt may fluctuate, there is unlikely to be any significant effect on the country’s foreign bonds.
10 Jun 2016
Sub-Saharan Africa split on Eurobonds
Sovereign issuers across Sub-Saharan Africa have been relatively quiet on the Eurobond front this year. Ghana has opted for a syndicated loan instead of a Eurobond over fears of paying high yields; however Nigeria could end the drought and is looking to tap the Eurobond market to fund its budget deficit.
6 Jun 2016
South Africa’s corporates shun the markets
Although there is concern over S&P Global Ratings’ upcoming review of South Africa, a lack of corporate activity on the international debt markets is not a recent phenomenon; simply put, country’s fundamentals have been deteriorating for some time.
1 Jun 2016
MTN Uganda calls up banks for US$114mn loan
MTN Uganda’s loan is a rare transaction amid low fixed income activity in the country. The deal attracted the interest of international lenders due to the strength of the borrower in the region’s markets, which assisted in achieving competitive pricing.
27 May 2016
Banking Africa’s Corporate Sector
Africa’s corporate sector is grossly under-banked. The corporate sector will undoubtedly be the main driver of Africa’s growth over the medium term. This will require credit.
27 May 2016
Nigeria easing up currency controls could prompt net outflows
The possibility of a partial free float of the naira would benefit the Nigerian economy. The country’s FX reserves would see a reprieve, and low dollar-denominated oil revenues would be bolstered by a reset in naira rates.
26 May 2016