Africa

The African Securities Exchanges Association (ASEA) is inching closer towards integrating the African capital markets by facilitating cross-border trading and free movement of investments in the continent.

As the Russia – Ukraine conflict intensifies, and Western countries increase sanctions against the aggressor a new challenge emerges for West African oilers. Russia needs to ensure a steady pipeline of cash to prop up their economy and so Russian oil is being supplied at less expensive levels for those nations willing to absorb the wrath of the west. Some of these nations also happen to be the best buyers of West African crude.

Moody’s Corporation (NYSE: MCO) announced today that it has agreed to acquire a majority (51%) stake in Global Credit Rating Company Limited (GCR). GCR is a leading credit rating agency in Africa with operations spanning the continent, including in South Africa, Nigeria, Senegal, Kenya, and Mauritius.

Fitch Ratings says the sector outlook for African banks in 2022 is neutral, with uncertain business conditions and Covid-19 risk constraining recovery. We anticipate a slightly faster rise in lending with most economies growing at the trend rate and banks gradually loosening stricter/pandemic-era underwriting standards. Our base case also considers risks to global growth, relatively high commodity prices and still favourable external financing conditions.