S&P: Sub-Saharan African Sovereign Commercial Loans to Fall 20% in 2016

American rating agency, Standard & Poor’s indicated in a recent report that sovereign commercial loans to SSA (sub Saharan Africa) nations would decrease by 20% in 2016, down to $37 billion. This based on data on 18 of the region’s countries which the agency rates.

The report adds that 64% of these loans, a little more than $23.7 billion, will be in local currencies while the remaining will be mobilised on the international market. 38% of the mobilized loans, about $14 billion, according to S&P, will be used to payback long-term loans which have reached maturity. The year before, $18 billion was used to refinance matured long-term loans.

Given these conditions, S&P expects an additional net commercial debt of $23 billion, and overall outstanding to grow to $300 billion.

Added to concessional loans, the global debt of S&P-rated SSA countries should reach $403 billion, thus rising 6.8%. Out of this amount, short-term debt should reach $53 billion by the end of 2016.

Hot this week

Ex-NAICOM Boss, O.S. Thomas to CHAIR Business Journal Insurance & Pension Roundtable 2026

Mr. Olorundare Sunday Thomas, former Commissioner for Insurance/CEO, National...

BUA Foods Unveils Bakers Pride Flour, Empowering Bakers to Explore More Possibilities

BUA Foods, one of Nigeria’s leading food manufacturing companies,...

Fidelity Bank Champions Digital Adoption, Sustainable Growth for Lagos SMEs

L-R: Divisional Head, Small and Medium-scale Enterprises (SMEs), Fidelity...

Insurance Meets Tech 5.0: Andela, Flutterwave Co-Founder, Iyin Aboyeji to Headline Event Nov 20

Insurance Meets Tech (IMT) has confirmed Mr. Iyinoluwa Aboyeji,...

RMB Nigeria Wins AIHN M&A Deal of the Year for Advisory Role in $583m Axxela Acquisition

L-R: Chidi Iwuchukwu, Executive Director and Head Investment Banking,...

Topics

5G: Gwandu Tasks African Countries to Harness $130bn Economic Value

Dr. Bashir Gwandu, former Acting Executive Vice Chairman/CEO, Nigerian...

NCDMB, NNPC, NCC, Zenith, Shell to Support Realnews 12th Anniversary Lecture

Some bluechip companies and organisations are supporting hosting the...

Tinubu Lauds Petrobras’ Imminent Return as Nigeria, Brazil Ink MoUs to Boost Economic Ties

President Bola Tinubu on Monday welcomed Petrobras's imminent return...

Great Nigeria Insurance: ‘Nigerians Should Adopt Insurance as Culture’

Great Nigeria Insurance Plc has called on Nigerians to...

Worldwide Smartphone Sales Grew 9.7% in 4qtr 2015

Global sales of smartphones to end users totaled 403...

FG Boosts MSME Financing with NCGC Initiative

In a bid to boost economic growth and development,...

PenCom, Operators Ready for Micro Pension Launch in Jan 2019

The National Pension Commission (PenCom) and operators in the...

When the Rain Becomes the Messenger: Lagos Is Not Flooding by Accident

·         How We Buried Our Drains, Burned Our Future...