From HowWeMadeItInAfrica

While the World Bank estimates that sub-Saharan Africa needs to spend about US$93bn annually on infrastructure, this is often talked about in terms of roads, ports and railways. But equally important is investment in Africa’s financial infrastructure.

This was expressed by Maria Ramos, CEO of Barclays Africa Group, at the World Economic Forum on Africa in Cape Town yesterday.

She noted the continent’s capital markets have made a number of important strides over the last decade. For example, the upward trend in bond issuances stands as a good indicator of economic growth.

“In 2014 new issuances came from Zambia, Kenya, Cote d’Ivoire, South Africa, Senegal, Ethiopia, and Ghana. Collectively these countries raised just over US$7bn, with yields on par with some of the southern European countries.

“And if someone had said to me when I was director general of South Africa’s National Treasury, just over 10 years ago, that this would happen, I would have said it is not likely. Well it has happened… and one particular perspective I certainly have is that this will accelerate over the next 10 years.”

Another step has been Africa’s inclusion in global emerging market debt indices. “In 2008 there were just five countries included in the dollar index, representing some $5.6bn of issuance. This has grown to $36bn with 15 issuers. That is interesting and important.”

Although African capital markets are attracting growing interest, activity still remains subdued. Ramos highlighted some ways they can be deepened and broadened:

Read more at HowWeMadeItInAfrica