This realisation comes as 20 African countries face or are at risk of debt distress.
The debt situation in many African countries has escalated again to a critical juncture. Twenty are in, or at risk of, debt distress.
By tackling these issues head-on, a financial environment can be created that fosters growth, empowers local economies, and ensures that African countries have access to the resources they need to thrive. The limitations of the new regulations highlight the need for a more nuanced approach to banking regulation. The adverse effects could be mitigated by simplifying the regulations. For example, requirements could be tailored to the specific needs of African economies, and supporting local banks.
Among these are sweetheart tax deals which often involving tax exemptions. In addition, illicit financial practices by multinational corporations drain countries of their limited resources. Rating agencies Rating agencies wield significant influence in the global financial landscape. They shape investor sentiment and determine countries’ borrowing costs.
Some countries have contested ratings. For instance, Zambia rejected Moody’s downgrade in 2015, Namibia appealed a junk status downgrade in 2017 and Tanzania appealed against inaccurate ratings in 2018. Ghana contested ratings by Fitch and Moody’s in 2022, arguing they did not reflect the country’s risk factors.
According to the report’s findings, African countries could access an additional US$31 billion in new financing while saving nearly US$14.2 billion in total interest costs.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Empowering African Businesses for Secure African PaymentsMastercard and Onafriq have joined forces to introduce secure, cost-effective, and innovative payment solutions to consumers and (SMEs) across the continent.
Read more »
Central African Republic: 20 Dead After Ferry Sinks in Central African Republic, Witnesses SayAt least 20 people have drowned in Central African Republic after a ferry sank while carrying passengers on a river, witnesses said Saturday.
Read more »
Can an African ratings agency provide a fairer assessment of African credit?The AU is pushing for an Africa-centric credit rating agency to address chronic low ratings from major agencies like S&P, Moody’s and Fitch. These low ratings exacerbate public debt, threatening the sustainability and access to international and domestic lines of credit.
Read more »
SARS double-tax warning for South African expatsSouth African expats are battling the South African Revenue Service (SARS) to avoid double taxation.
Read more »
African Academy in Boksburg hosts career tour for Germiston High learnersBreaking local news in Boksburg
Read more »
Reflecting on three decades of South African democracy in picturesOver the past 30 years, South Africa has seen considerable strides in enhancing the lives of its people.
Read more »