+++++ DBA connects with Mo Ibrahim Foundation +++++ The DBA researcher Richard Adu-Gyamfi, PhD was featured in the Mo Ibrahim Foundation’s annual forum report. The report’s theme was “Financing Africa: Where is the money?” Richard is quoted on how African financial institutions can support businesses in Africa to increase value addition in Africa: “I strongly believe that Africa’s success is tied to unity. The existing continental financial giants such as the @African Development Bank, the @African Export and Import Bank (AFREXIM), and others could create an African Consolidated Investor Fund to finance African multinationals and small and medium-sized enterprises for value-adding projects. When this works, as was the case of Japan, African countries will receive a boost in investor confidence, despite increasing debt to GDP ratios.” Page 91. Download the report at https://lnkd.in/eaK3d74G Do you think businesses in Africa could be directly supported to build value-addition to the raw materials in Africa? Please share your thoughts #finance #Africanmultinationals #investment #money #DBA #ESB #AfroChampions #AfCFTA
Doing Business in Africa // ESB Business School, Reutlingen University’s Post
More Relevant Posts
-
Dear policymakers in Africa, Investing in the development of our capital markets is crucial for attracting substantial foreign investment and strengthening the economy. A clear comparison highlights this necessity. South Africa's fixed income market capitalization of $440 billion attracts around $12.5 billion in foreign capital inflows, while Nigeria, with a $180 billion market, only attracts $1.5 billion—just 12% of South Africa's intake. This evident gap underscores the vital link between a well-developed capital market and the capacity to draw significant foreign investment. To realize similar potential, focusing on growing and deepening capital markets is essential. Ensuring they are attractive, transparent, and liquid will facilitate the influx of more foreign capital, thereby supporting economic stability and bolstering the domestic currency. #Africa #CapitalMarkets #ForeignInvestment #EconomicDevelopment #PolicyMaking
To view or add a comment, sign in
-
Key highlights from our media briefing on Ghana and Africa’s financial landscape delivered by Ms. Sonia Essobmadje from United Nations Economic Commission for Africa. Credit ratings are crucial for determining borrowing costs for African governments and corporations, with higher ratings leading to lower interest rates and freeing up resources for vital investments. However, the global speculative-grade default rate rose to 3.7% in 2023, and countries like Ghana, Zambia, and Ethiopia defaulted on their debts due to economic challenges. These defaults highlight the need for African nations to mobilize domestic resources and develop local capital markets. Ms. Essobmadje emphasized the importance of strengthening fiscal management, improving governance, enhancing debt management, and promoting economic diversification. UNECA has been actively addressing sovereign credit rating challenges through training, expert meetings, and reports, advocating for transparent rating methodologies and developing domestic capital markets. By improving creditworthiness and leveraging digital financial services, Africa can achieve a more resilient and inclusive financial ecosystem, fostering economic growth and stability. Stay tuned for more updates as we work together for a stronger financial future! 💪🌟 #AfCRA #CreditRatings
To view or add a comment, sign in
-
After the IMF, the biggest source of funds for Ghana right now is the World Bank. There is a global push for the World Bank to pump even more money into countries like Ghana. More money is usually good. But equally important is whether the money does good for the people. I have been looking into this closely through an extensive evaluation of the World Bank's ~$4bn Ghana portfolio for a paper released during the World Bank - IMF Spring meeting by Paris-based Finance for Development Lab. The full paper is here: https://lnkd.in/d7e96J5C A shorter summary is on my blog: https://lnkd.in/dWdCY3Tg Africa Report has kindly published an even briefer intro: https://lnkd.in/dnzUBnVN In summary, I find that what the World Bank says about many of its Ghana-based projects differ substantially from what is on the ground. About 70% of the time. And sometimes shockingly so. The way forward is for domestic civil society activists to play a bigger role in program design, rating & monitoring. ******************************************* https://lnkd.in/dnzUBnVN
To view or add a comment, sign in
-
Did you know that African countries have the potential to save a whopping US$74.5 billion if credit ratings were based on less subjective assessments? Imagine the impact this could have! With more objective ratings, countries could allocate funds to repay their debts, both domestic and foreign, and have resources freed up for investments in critical areas like health and infrastructure. Our CEO Daouda Sembene, PhD will be part of the panel on 📆 May 28th at 🕓 4pm EAT at 📍Pan Pacific at Global Trade Center in Nairobi Kenya that will be exploring into strategies that could help Africa develop innovative credit rating solutions tailored for its financial needs. Secure your spot today: https://lnkd.in/dP9WEGA6 #CreditRatingAfrica #AfricaEconomicGrowth #CreditRatingSolutions #AfDBAM2024
To view or add a comment, sign in
-
📢 𝐌𝐚𝐣𝐨𝐫 𝐔𝐩𝐝𝐚𝐭𝐞𝐬 𝐟𝐫𝐨𝐦 𝐨𝐮𝐫 𝐌𝐞𝐝𝐢𝐚 𝐁𝐫𝐢𝐞𝐟𝐢𝐧𝐠 𝐭𝐡𝐢𝐬 𝐚𝐟𝐭𝐞𝐫𝐧𝐨𝐨𝐧 𝐨𝐧 𝐆𝐡𝐚𝐧𝐚 𝐚𝐧𝐝 𝐀𝐟𝐫𝐢𝐜𝐚'𝐬 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐋𝐚𝐧𝐝𝐬𝐜𝐚𝐩𝐞 𝐝𝐞𝐥𝐢𝐯𝐞𝐫𝐞𝐝 𝐨𝐧 𝐛𝐞𝐡𝐚𝐥𝐟 𝐨𝐟 𝐀𝐏𝐑𝐌 𝐂𝐄𝐎 𝐛𝐲 𝐃𝐫. McBride Nkhalamba. P . Dr. Nkhalamba shared insights from the APRM’s Technical Support Mission to Ghana on credit ratings, highlighting Ghana's challenges with inaccurate and irregular ratings from international agencies. He emphasized APRM’s support, noting, "We corroborated Ghana’s concerns with the downgrades." The mission's findings revealed a need for better institutional coordination, proactive engagement with credit rating agencies, and improved communication of economic data. Recommendations include establishing a Credit Rating Liaison Team, revising regulatory frameworks, and developing a national credit rating strategy. Dr. Nkhalamba also discussed the establishment of the Africa Credit Rating Agency, describing it as "a private sector-driven agency for financial independence," with the goal of enhancing Africa's economic development. He called on the African Development Bank and Africa Export-Import Bank to provide the necessary support, with a target to have the agency fully operational by 2025. "This marks a significant step towards financial independence," he emphasized. Stay tuned for more updates and let’s work together for a stronger financial future! 💪🌟 #AfCRA #CreditRatings #APRM
To view or add a comment, sign in
-
President William Ruto announced an investment of $100 million (approximately Ksh 13.1 billion) into three major African financial institutions to boost the continent's economic independence and strengthen confidence in its banking sector. Speaking at the African Development Bank Group’s Annual Meetings 2024, President Ruto revealed Kenya's plans to inject funds into the African Development Bank, African Export-Import Bank (Afreximbank), and the Trade and Development Bank Group - TDB Group over the next three years. This investment aims to increase Kenya's shares in these banks and encourage African nations to take ownership of their financial institutions. "It is urgent that African integration be deepened to spur increased intra-continental trade. This intervention will accelerate economic growth and generate more productive jobs for millions of our young people." said President Ruto. Additionally, Kenya plans to allocate Ksh 2.6 billion to the Africa Development Fund (ADF), the concessional wing of the AfDB, which assists countries in various stages of economic development. President Ruto highlighted the need for fairer international lending terms for African nations, pointing out the disparity in interest rates compared to other regions. He called for reforms to promote equitable lending practices, emphasizing that the current unjust financial architecture burdens African countries with high debt servicing costs, hindering their development efforts. #AfricanIntegration #Kenya #AfDB #Afreximbank #Africa #EconomicGrowth
To view or add a comment, sign in
-
Exciting opportunities for Zimbabwean enterpreneurs and ecosystem builders. l had to share urgently coz the deadlines are a bit urgent. 1. Fifty-sixth session of the Economic Commission for Africa Conference of African Ministers of Finance, Planning and Economic Development to be helf in Vic Falls. The Conference brings together African Ministers of Finance, Planning and Economic Development, governors of central banks, and entities of the United Nations system. In addition, it will include the participation of pan-African financial institutions, youth representatives, African academic and research institutions, development partners, intergovernmental organizations and other key stakeholders. The Zimbabwean Ministry of Finance and Investment won the bid. Register below https://lnkd.in/dYBrfmsH 2. ZIMRA is conducting an AfCFTA conference to discuss the facilatory role of Zimbabwe Revenue Authority (ZIMRA) Official It's exciting to see that AfCFTA issues are being discussed more and more. The poster is below
To view or add a comment, sign in
-
The Financial Action Task Force (FATF) has placed Kenya on the grey list. This move poses considerable challenges for the investment community looking towards Kenya. Key Implications: · Capital Markets and Foreign Currency Inflows: The expected cautious approach by the global financial system could lead to a decrease in foreign currency inflows, crucial for the nation's economic health. · This could dampen Kenya's appeal as a prime destination for foreign direct investment (FDI). Investors often seek stability and predictability, elements now under scrutiny due to the FATF's decision. · Businesses based in Kenya might experience increased operational expenses. This increase could stem from heightened compliance requirements and a general re-evaluation of risk by international partners. · The risk of de-risking by correspondent banks and critical financial relationships could further strain Kenya's access to international financial networks, essential for cross-border transactions. · The increase cost of public international debt, affecting not just the government's fiscal strategy but also the currency and local bond and equity markets over time. 🛠️ Kenya can address the FATF's concerns by implementing recommended policies and reforms. This can facilitate the reversal of the grey listing in a shorter timeframe and restore confidence among international investors and partners. 💰Opportunities often arise in times of change, and a well-informed approach could uncover potential for those prepared to navigate this complexity. #Kenya #Investment #Finance #FATF #MarketInsights #InvestorRelations
To view or add a comment, sign in
-
🤔 It's clear that there are many paths forward to sustainably finance Africa's development. 🛣 Luladay Berhanu Mengistie, 2023 Mo Ibrahim Fellow at the International Trade Centre, believes one path should focus on curbing illicit financial flows, better data and policies to make Africa's investment landscape more predictable. 💱 📢 You can hear what other NGN members have to say about how to sustainably finance Africa's development in the #FinancingAfrica report below! 👉🏽 https://lnkd.in/eaK3d74G
To view or add a comment, sign in
-
Africa's credit rating on fiscal and monetary policies is a complex issue. The African continent is faced with some of the highest borrowing costs in the world, partly, due to low credit ratings . To reduce the subjectivity of Africa's credit ratings, there is a need for more transparency regarding the rating process and what portion of it is subjective. Join us as we address the issue of low credit ratings in Africa . #Ghana #International #Trade #Finance
To view or add a comment, sign in
1,865 followers
Executive director of the independent Commission for Human rights in North Africa and member of the steering committee of the NGO FORUM. member of the support group to the African commission on Human and people's rights
3moIt was a pleasure to meet Mr Richard.