The Editorial Team |

AFD Chief Urges African Nations to Borrow Locally to Avoid Bias

LAGOS (Capital Markets in Africa) — African nations should tap more domestic savings for their funding needs and develop their own financial markets to avoid the complications and “bias” that comes with raising international debt. That’s according to Agence Française de Developpement Chief Executive Officer Remy Rioux, who is urging sovereign borrowers to turn to long-term, concessional financing rather than rely on short-term, expensive credit from private institutions. Part of the risk premium attached to African…

Liquid Telecom Raises $307 Million in African Data Center Push

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LAGOS (Capital Markets in Africa) — Liquid Telecom has raised $307 million through a rights issue to fund a rapid expansion of its data center business across Africa. The rights issue included an additional $40 million from U.K. development finance institution CDC Group Plc, the group said in a statement. Africa’s largest fiber-network operator is planning to expand its data center unit in five of the continent’s fastest-growing countries including Egypt and Nigeria, aid Stephane Duproz,…

China’s Feud With Bondholders Could Reset Debt Workout Rules

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LUSAKA (Capital Markets in Africa) — The last time Zambia renegotiated its external debt, the well-oiled machine established by institutional lenders and western governments handled it with little trouble. But 15 years later, with the southern African nation in the throes of a $12 billion debt overhaul, China and bondholders have emerged as powerful new players to upend the choreography. Beijing is embroiled in a feud with money managers in New York and London, putting…

LIBOR End Game Enters Next Phase With New Derivatives Protocol

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LAGOS (Capital Markets in Africa) — The global migration away from the London interbank offered rate hit a critical juncture Friday, with a new legal protocol opening the way for a wider adoption of alternative benchmarks. The International Swaps and Derivatives Association, or ISDA, unveiled standardized contractual language, which will allow firms that haven’t fully prepared for Libor’s exit to incorporate transition clauses into their agreements. Lawyers say the move by the trade group that oversees the global…

Zimbabwe’s Maligned Dollar Catches Break on Central-Bank Action

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HARARE (Capital Markets in Africa) — Zimbabwe’s measures to stabilize the country’s currency is finally paying off: the local dollar is heading for back-to-back months of gains for the first time since it was re-introduced 18 months ago. This comes after the southern African nation’s central bank introduced weekly foreign-currency auctions and cracked down on mobile-money transactions, blamed by authorities for undermining the currency. The Zimbabwe dollar slumped to 83.39 per U.S. dollar on August 26 after…

Guinea’s Russia-Backed President Leads Election as Tension Rises

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GUINEAN (Capital Markets in Africa) — Guinean President Alpha Conde led the vote count in half of the nation’s 38 districts amid clashes between opposition supporters and security forces that have left at least nine people dead. Conde garnered the most ballots in 14 areas, while opposition leader Cellou Dalein Diallo obtained a majority in six, Kabinet Cisse, the head of the electoral commission, said on state television late Wednesday. Election officials expect to complete the count…

Africa to Fall Behind World Growth as Region Faces Slow Recovery

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LAGOS (Capital ) — Sub-Saharan African economies face a slow recovery from the coronavirus pandemic and the region’s economic growth will fall behind the rest of the world next year, according to the International Monetary Fund. Gross domestic product in the region is projected to expand 3.1% next year, compared with a forecast of 5.2% for the world economy. This partly reflects sub-Saharan Africa’s relatively limited space for fiscal expansion, the Washington-based lender said in…

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