Old Mutual Investment Group’s Post

🤔 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

+++++ 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

Discover insights from our latest Fundamentals series through an article by Old Mutual African Flexible Income Fund Manager Randolph Oosthuizen, CFA Oosthuizen which argues that South Africa’s Government of National Unity has much to learn from Morocco’s economic reform, which currently has the highest Eurobond credit rating in Africa. https://lnkd.in/dwP8rs8C #EconomicReform #InvestmentInsights #AfricaEconomics

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

"Private credit has a similar role to play in #Africa as it does elsewhere, providing alternative lending, outside the banking market and focusing on cashflow lending to better meet the funding needs of companies, " says Jo Fry, Investment Director & Head of Intermediated Credit, British International Investment. If you're interested in our market, read this interview. And watch SuperReturn's interview with Jo Fry's colleague from British International Investment, Joseph Mate  (Investment Director, Intermediated Credit).  #privatecredit #smefinance #frontiermarkets #impactinvesting #jobcreation

How is private credit faring in Africa? Joseph Mate, Investment Director, Intermediated Credit, British International Investment (BII), spoke to us at SuperReturn Africa to explore the growing private credit market in Africa, what challenges are specific to the continent and where he expects growth to come from in 2024. Watch the full conversation >> http://spr.ly/6040TNg5Y #SRAfrica #privatecredit

Fascinating read. Few comments: - Key conclusion: our countries took a poisoned gift without being ready nor understanding what it meant... all for political expediency at the detriment of citizens. - Pity that the journos did not question the methodologies applied by the large Credit Rating Agencies (neither did our countries ask for them until it got sticky!). Rather they took it at face-value (which of course would lead to the conclusion that the methodology is not applied in a biased way! Dah!) and in my opinion missed the point on criticism of CRMs role in Africa. https://lnkd.in/eCRxsmQJ

Africa will launch its own credit ratings agency in 2025. This agency is established to meet the unique needs of Africa’s sovereign borrowers. Aims to provide tailored ratings that reflect the continent's specific economic conditions. This move is significant. It addresses the long-standing issue of unfair ratings from global agencies. It will better serve Africa's financial landscape. It could reshape how African nations are perceived in global markets.

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

Find out how SA’s Government of National Unity could shape the local market outlook, in an article from the Q3 Fundamentals series. Portfolio Manager Jason Swartz writes that political instability often leads to higher risk premiums for investor assets, as seen in South Africa's volatile pre-election period. However, since the establishment of the #GNU, investor sentiment has improved with key appointments like Enoch Godongwana as Finance Minister and Khumbudzo Ntshavheni in the Presidency, supporting fiscal and structural reforms. The GNU also included opposition parties in significant roles, which could foster growth. Investors are cautiously optimistic, awaiting progress on energy capacity and governance, with South African assets remaining undervalued, as foreign investors look for signs of further reform that could drive economic growth in the country. https://lnkd.in/d22mQdZX #InvestmentInsights #SouthAfricanEconomy #FiscalReform