Yolanda Mongo Braga’s Post

Credit ratings play a crucial role in attracting investment and achieving sustainable economic growth. African nations can address their credit rating challenges by taking a multi-faceted approach: - Establish an African Credit Rating Agency: A regional agency with a deep understanding of local contexts can provide fairer assessments and combat biases. - Improve Economic Fundamentals: Implementing sound policies, investing in key sectors, and maintaining political stability are essential for strong credit ratings. - Enhance Data Quality: Providing accurate and comprehensive economic data to rating agencies is crucial for fair assessments. - Engage with International Agencies: Dialogue and data sharing can improve international understanding of African economies. - Strengthen Regional Cooperation: Regional integration, like the AfCFTA, can boost economic stability and attract investment. By implementing these strategies, African nations can work towards achieving fairer credit ratings, reducing borrowing costs, and fostering sustainable economic growth. #Africa #CreditRatings #EconomicDevelopment #Investment

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

🌍 Africa's Credit Rating Evolution 🌍 As Africa moves toward establishing its own credit rating agency, the goal is clear: to escape the biases of Western rating systems that often misrepresent the continent's economic realities. By developing methodologies tailored to local contexts, this agency could enhance transparency, foster investor confidence, and significantly lower borrowing costs for African nations. This initiative represents a critical step in promoting financial independence and ensuring that African countries can tell their own economic stories accurately. #Africa #CreditRating #FinancialIndependence #rating #challenges Standard & Poor's Global Credit Portal Fitch Ratings Moody's #West African Development Bank Group AfricanUnion #Economy #AfricaRise

If you read nothing else this week, read the attached article. Blended finance is the only way forward. Rather than depending exclusively on private markets, which pose excessive cost barriers, Dabalen promotes the use of grants and concessional loans as essential tools for promoting economic development in Africa. This is a wise course of action, especially given the current slow pace of global economic expansion. It is our responsibility to acknowledge that the availability of easily accessible financing is a critical factor in ensuring sustainable growth on the African continent. In the absence of these resources, developmental objectives continue to be elusive. As a result, it is in our best interests to have proactive conversations and work together to make concessional financing available and so spark sustainable growth and prosperity throughout Africa. #AfricanGrowth #ConcessionalFinance #SustainableDevelopment #AfricanEconomy

"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

A BIG Shout-out to the UNDP's Africa Credit Ratings Resource Platform This newly-minted knowledge platform serves as the UNDP’s project to support African countries in improving their credit ratings. It brings a treasure trove of data, methodological information, and research on credit ratings. Its release is timely and could not have come at a more critical time. Following the International Monetary Fund's Regional Economic Outlook for Sub-Saharan Africa for April 2024, many countries are assessed to remain challenged by macroeconomic imbalances, fiscal debt and deficits that have -- and are -- mounting as well as high cost of capital (borrowing cost). Debt servicing consumes more and more of countries' fiscal revenues and leave very little room for investments, social safety nets, and other spending for development. Many other countries, not just in Africa, are yet to be rated. Many rated countries are worth reassessment. Although the platform appears to be undergoing further development still, this is definitely one space worth keeping an eye on. #subsaharanafrica #ssa #sovereignratings #debtsustainability #emergingmarkets https://lnkd.in/eGtexAZB

💡 The African Development Bank brings together heads of state to discuss financial issues in Africa 🌍💰 #EconomicDevelopment #RegionalCooperation 🔗 What are your ideas for stimulating economic growth in Africa? 💬 #ADB #Nairobi2021

What else can be achieved in 2024 to make the international financial system work for African countries? 1. Establish an African Credit Rating Agency (CRA) 2. African countries should diversify their funding sources 3. African countries should pursue new sources of growth For further analysis see article cowritten by our Economist Trevor Iwere. 🔗 https://buff.ly/467rlXD . . #economicgrowth #africa #creditratingagency

The managing director of the IFC - International Finance Corporation Makhtar Diop says he wants African countries to be ready to seize the day. To my deep chagrin he is not interested in rerunning Korean industrial policy tools from the 1960s :-) But after putting $12bn into Africa in 2023, he does have a vision for getting Africa’s public and private sectors to work in much closer union. Something we will be discussing today at the Africa CEO Forum in Kigali, #Rwanda #ACF2024

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