Brent Malahay’s Post

"We need to reform how African nations are rated and reconsider the parameters that shape these models”- states Chipokota Mwanawasa -Policy Advisor to the President and Deputy Head of the Presidential Delivery Unit Government of Zambia, during the Nordic African Business Summit 24 for Norwegian-African Business Association (NABA) When it comes to doing business or investing in Africa, perceptions and risk often drive up the cost of capital. But are these perceptions accurate? #Africa is diverse and complex, therefore blanket ratings simply don’t reflect the unique opportunities within each country. Investors should not just rely on distant data or one-size-fits-all metrics. The most insightful approach is to spend time on the ground, talk to local stakeholders, and make informed, firsthand assessments. For those ready to look beyond the surface, Africa holds immense untapped potential. Let’s build a new narrative, driven by direct engagement, deeper understanding, and sustainable growth. To read more: https://lnkd.in/d-JWJ4JK #InvestInAfrica #AfricaInvestment #BusinessGrowth #EmergingMarkets #AfricaOpportunity #SustainableInvestment #DirectEngagement #ChangingTheNarrative #EconomicGrowth #ImpactInvesting #Sustainability #Fundraising #AfricanStartups #VentureCapital #AfricaRising #GlobalMarkets Mathilde Emilie Thue Solveig Tangen Sherina Rendini Eivind Fjeldstad Ignacio Hennigs Natalie Bridgette Becker-Aakervik Mikkel Becker-Aakervik Trond Riiber Knudsen Endre Skolt Palesa Morudu Greg Rosenberg Chalker Kansteiner Reinaart Pretorius Amina Touray Barbro Mutombo Ciakudia Leyla B. Per Kristian Sbertoli Lene Lothe Anna Häggblom Meera Bhatia Terje Pilskog Ingrid Sara Grimstad Amundsgård Tellef Thorleifsson Mark Eddo Joanne McNally Harald Kleiven Heidi Dahl Zemedeneh Negatu Ana Hajduka Shields

The call is getting louder and louder and is now, in a sense, coming from inside the house, The need for better rating methodologies for African countries is becoming increasingly pertinent , especially as credit ratings play a crucial role in determining a country's ability to access international finance at a time when infrastructure finance is at the fore for fostering development across the continent. First off, there’s the issue of bias and misaligned perceptions. Many rating agencies apply a standardized approach that doesn’t fully capture the distinct challenges and opportunities across Africa. This often results in an overly pessimistic view of risk, making it harder for countries to secure affordable financing, even when they’re making serious strides in governance and reforms. Another critical point is the lack of a nuanced understanding. Africa’s diversity is extraordinary—economic structures, political landscapes, and growth potential vary significantly. Yet, traditional methodologies often miss key factors, like the size and impact of the informal economy, which plays a massive role in many African countries. Afterall, Africa (and I cannot emphasis this enough) IS NOT A COUNTRY. Then, there’s the data gap. Reliable and up-to-date data isn’t always readily available, so ratings can end up relying on incomplete information. Imagine how much more accurate these assessments could be if they incorporated insights from local sources (think local FIs, think tanks, & govt sources) and regional institutions like AfDB, ESA-TDB and AFREXIM etc. (you get the gist). Lastly, we need to consider the impact of external shocks and structural vulnerabilities. Whether it’s commodity price swings or climate risks, current models often underplay how these factors affect African economies. Plus, they don’t always reward nations for building resilience or diversifying their economies. Addressing these gaps isn't just about fairness; it's about creating opportunities. With more balanced and accurate ratings, African countries could lower borrowing costs and attract more investment, fueling growth and development across the continent. It’s time for a fresh perspective on credit risk that truly reflects Africa’s potential. Or perhaps more importantly, for capital sourced within the continent, we should champion our own credit rating agencies. It's likely time to look within and not outside for a solution.

🌍 The Future of Africa is in the Hands of its Youth! 🌍 With its vast wealth of raw materials, minerals, and land, Africa's growth potential is enormous. But the true key to unlocking this potential lies in our youth. With a continental average age of 17.4, Africa is a young and vibrant continent full of promise. At APA Group, we are committed to educating, empowering, and inspiring the next generation of African leaders to develop intellectual mindsets and a deep understanding of their role in shaping the future. We believe that Africa’s resources aren’t just in its land but in its people—especially its youth. In a time when Africa faces challenges and opportunities like never before, we must invest in the youth, providing them with the tools and knowledge to drive the continent forward. Africa needs them now more than ever. Together, we can build a future that taps into the full potential of Africa's youth, transforming not just industries, but entire communities. 🌱 Empower today, Lead tomorrow! 🌱 #EmpowerYouth #AfricaRising #APAGroup #FutureLeaders #SustainableDevelopment #YouthEmpowerment #AfricaPotential #MineralWealth #NextGeneration #AfricaYouth #InspireChange

Africa is redefining how it funds its growth, with creative solutions emerging to address pressing development needs. Tomi Abe reports that the continent is leveraging innovative public-private partnerships, diaspora investments, and social impact funds to close its significant infrastructure gap, estimated between $68 billion and $108 billion annually. Despite challenges, such as political instability and limited data, countries like Rwanda and Morocco are drawing global interest with smart policies and successful projects. With impact investments rising by 14.2% annually, Africa’s potential for growth is clear. How can we contribute to unlocking Africa’s economic opportunities and ensure these efforts reach more communities? Find out!: https://lnkd.in/dwhgTkXz ✍🏾 Research & Writeup by Tomi Abe 🔍 Reviewed & Edited by Adetoro Adetayo 🎨 Images / Illustrations by Tomi Abe #AfricaInvest #ImpactInvesting #AfricanGrowth #DiasporaInvestment #AfricaDevelopment #InvestInAfrica #AfricaInfrastructure #AfricaInnovation #SustainableFinance #AfricaRising #Susinsight

🌍 Rethinking Africa’s Rating Models for a Just Climate Transition 🌱 As we look towards a sustainable future, we must confront a critical reality: African economies often carry debt burdens nearly equivalent to the level of green finance they desperately need to secure for climate adaptation and mitigation. Global rating models, which influence creditworthiness, impact the ability of African nations to access affordable climate finance. Unfortunately, these models often don’t account for the nuances and challenges of African economies, leading to ratings that don’t fully capture the potential and resilience of these nations. Consequently, they find themselves caught in a cycle—locked out of the very funding that could propel their green transitions. We need to reform these rating frameworks, reconsidering the parameters that shape them to ensure they reflect Africa’s economic realities and growth potential in a climate-conscious world. This means embracing more inclusive and forward-looking assessment methods, ones that recognize the continent’s unique contributions and vulnerabilities in the face of climate change. African nations shouldn’t be penalized for structural challenges, but instead supported in unlocking their full potential for green growth. By adjusting these models, we can bridge the financing gap, enabling the flow of capital that empowers African economies to lead the way in the global green transition. 🌱 #ClimateFinance #AfricaRising #GreenTransition #DebtRelief #SustainableDevelopment

As global aid policies evolve, it’s crucial for Africa to explore alternative funding models that ensure sustainable growth and reduce dependency. Africa now has a golden opportunity to build a stronger, more self-sustaining future. By strengthening local resource mobilization, fostering public-private partnerships, and leveraging the power of the diaspora, we can create more resilient economies. Let’s embrace innovative financing solutions, from social impact investments to green bonds, and build a future where development priorities are driven by local needs and global partnerships. It’s time to rethink how we fund progress. Together, we can unlock Africa’s full potential and pave the way for long-term, inclusive growth. #AfricaRising #Innovation #SustainableDevelopment #AlternativeFunding #Empowerment

"We need to reform how African nations are rated and reconsider the parameters that shape these models”- states Chipokota Mwanawasa -Policy Advisor to the President and Deputy Head of the Presidential Delivery Unit Government of Zambia, during the Nordic African Business Summit 24 for Norwegian-African Business Association (NABA) When it comes to doing business or investing in Africa, perceptions and risk often drive up the cost of capital. But are these perceptions accurate? #Africa is diverse and complex, therefore blanket ratings simply don’t reflect the unique opportunities within each country. Investors should not just rely on distant data or one-size-fits-all metrics. The most insightful approach is to spend time on the ground, talk to local stakeholders, and make informed, firsthand assessments. For those ready to look beyond the surface, Africa holds immense untapped potential. Let’s build a new narrative, driven by direct engagement, deeper understanding, and sustainable growth. Story by Thought Leader Africa To read full article with video: https://lnkd.in/d-JWJ4JK #InvestInAfrica #AfricaInvestment #BusinessGrowth #EmergingMarkets #AfricaOpportunity #SustainableInvestment #DirectEngagement #ChangingTheNarrative #EconomicGrowth #ImpactInvesting #Sustainability #Fundraising #AfricanStartups #VentureCapital #AfricaRising #GlobalMarkets Mathilde Emilie Thue Solveig Tangen Sherina Rendini Eivind Fjeldstad Ignacio Hennigs Natalie Bridgette Becker-Aakervik Mikkel Becker-Aakervik Trond Riiber Knudsen Endre Skolt Palesa Morudu Greg Rosenberg Chalker Kansteiner Reinaart Pretorius Amina Touray Barbro Mutombo Ciakudia Leyla B. Per Kristian Sbertoli Lene Lothe Anna Häggblom Meera Bhatia Terje Pilskog Ingrid Sara Grimstad Amundsgård Tellef Thorleifsson Mark Eddo Joanne McNally Harald Kleiven Heidi Dahl Zemedeneh Negatu Ana Hajduka Shields

Realizing our vision requires robust partnerships. International investors, NGOs, and local businesses must collaborate to create ecosystems that support human development. We can implement scalable solutions that address our most pressing challenges by pooling resources and expertise. These partnerships must be based on mutual respect and a commitment to sustainable development. #invest #investinafrica #africa #bc #blackcheetah #people #investinpeople

Unlocking Africa's Potential: Mindset is Everything.✅ The African Development Bank, global leaders, philanthropists, and impact investors: We are witnessing the devastating effects of climate change firsthand. According to the Food and Agriculture Organization of the United Nations (FAO), over 200 million people in Africa are currently experiencing food insecurity. This is a crisis that demands urgent and coordinated action. AgriEmpire, a visionary concept with the potential to transform African agriculture, requires early-stage funding to become a reality. I urge you to support this groundbreaking idea. By investing in the next generation of African entrepreneurs and their visionary concepts, we can unlock transformative potential and build a climate-resilient future. Let us embrace innovation, support bold ideas, and empower our communities to overcome these challenges Ps. Africa's greatness lies within. By cultivating a growth mindset and unlocking our inherent potential, we can achieve unparalleled heights.✨ U.S. African Development Foundation (USADF) African Development Bank Group African Investors Council Kenneth S. #agriculture #growth #investors #business #africa

Great Platform! wishing you all the utmost success in navigating these important discussions and engagement!