Business
Africa-Owned Private Equity Funds Good to Fight Capital Flight
He also highlighted the emergence of African bonds in the international debt market. “in Ethiopia, Kenya, Nigeria, South Africa, and Zambia, Infrastructure Bonds issues were recently oversubscribed by up to 15 times.” He said that these bonds could perform better with superior returns, low borrowing costs, appropriate fiscal incentives, and credit guarantee facilities to protect against default.
“As many of these are likely to be trans-boundary projects, African countries should coordinate efforts to deepen these bond markets and incentivize capital to stay in African countries,” he said and proposed an African Credit Guarantee Facility (ACGF) which would back African companies by guaranteeing the bonds they issue, and thereby build investor confidence to invest in the activities of these companies.
Copyright AFK Insider 2014
