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The impact of COVID-19 on the Debt Capital Markets in Africa – FBNQuest

Published

5 years ago

March 23, 2021

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Traditionally, corporates and states in Africa use debt capital markets to raise huge funding. As the coronavirus bites harder against the increasing debt-to-GDP ratios coupled with increasing risks in African countries, the pricing of new issuances in the international debt capital markets became relatively unattractive.

Consequently, African governments turned to other concessionary sources like the International Monetary Fund (IMF), World Bank and Development Finance Institutions for funding.

Africa’s depiction of the international debt capital markets is dominated by sovereign issuances. While its debt capital markets offer investors better returns than in developed markets, its domestic markets remain shallow and least diversified compared to other emerging and frontier markets.

Also, African corporates are less likely to raise substantial amounts of funding via debt capital markets due to various reasons including lack of depth in the domestic markets and institutional weaknesses.

Between 2014 and 2018, sovereign bonds accounted for 51.5 per cent of the total $140.3 billion raised from 437 international bond transactions in Africa.

Within 2016 and 2018, African issuers raised about $120 billion of non-local currency debt which further culminated to $245.9 billion of non-local currency debt from 759 issues within the last decade.

The largest sovereign issuer of non-local currency debt in 2019 was Egypt raising $8.2 billion. Next to Egypt is South Africa which raised $5 billion in September of the same year from its largest-ever Eurobond issuance.

However, in 2020, the effect of COVID-19 impacted the African economy resulting in a pullback from African markets as countries faced crisis on all levels including health and social services. These unprecedented shocks call for a temporary debt standstill for all African countries as economic fundamentals deteriorated.

A 2020 study on the economic impact of COVID-19 by the African Union (AU) showed that while countries in Africa could lose up to $500 billion, they may be forced to borrow heavily to survive after the pandemic, hence the need for the debt standstill—suspension of debt service.

For example, Mozambique’s debt overtook its overall economic output as its debt-to-GDP ratio, which was 100 per cent in 2018 billowed to 130 per cent in 2020; even as the country struggles to repay its $14 billion external debt.

Asides from Mozambique, there are other poor and highly indebted African countries with little fiscal space to provide a robust response and recovery from the pandemic. Some of these countries like Angola, Djibouti, Congo, Cabo Verde, and Egypt have a higher than 100 per cent external debt-to-GDP ratio, yet, they still seek more funds.

Consequently, the G-20 agreed to suspend debt repayment for the world’s 75 poorest countries until the end of 2020. UN Secretary-General António Guterres further advised that debt suspension should be extended to all developing countries, while the UN Economic Commission for Africa (ECA) recommended a complete temporary debt standstill for two years for all African countries, without exception.

Over the years, there have been calls by multilateral institutions for debt forgiveness for Africa’s most impoverished states. However, some experts opine that such cancellation or debt standstill would be perceived as a default in today realities of the international capital markets and will greatly compromise the future access of African countries to international markets.

For example, states like Benin and Ghana which were able to access capital markets over the past year at 5.75 per cent for 7 years (€500 million) and 8.875 per cent for 40 years ($750 million) respectively might find it difficult to do so if they are perceived to be in default. On the other hand, perception of default would likely also be priced into future borrowings by African countries.

Following the above, in April 2020, China, which accounts for most of the lending to African countries through its China Development Bank and the Export-Import Bank of China, expressed a willingness to provide Africa debt relief, but not forgiveness.

In June, China offered to cancel Africa’s interest-free loans, which is less than 5 per cent of Africa’s debt to China, based on bilateral negotiations.

With the already rising value of the total public debts in many African countries, to combat the prevailing crisis of the coronavirus, some African countries opted for multilateral financing. One of such countries is Nigeria.

The country, in the second quarter of 2020, requested $6.9 billion of multilateral financing from the International Monetary Fund (IMF), World Bank and African Development Bank (AfDB) to minimise the impact of the upsurge of the global pandemic.

Part of these funds was to establish a $1.2 billion COVID-19 crisis intervention fund to upgrade healthcare facilities across the country and to provide intervention funds to the 36 states including the Federal Capital Territory (FCT).

Similarly, against the backdrop of the pandemic, the African Union launched several programmes, like the African Union Development Agency (AUDA-NEPAD) COVID-19 Response Plan to help countries fight the pandemic and recover better.

Using Nigeria as a case study, activities in the domestic bond market significantly increased year-on-year given the relatively low yields in the market.

In H1 2020, seven corporate bond issuances were raised to the tune of N152.7 billion compared to N54 billion raised in three issuances in the corresponding period of the previous year.

According to the data by the Debt Management Office (DMO), the nation’s debt stock data at the third quarter (Q3) 2020 showed that the total public debt portfolio of the federal and state government combined stood at N32.22 trillion ($84.57 billion), an increase of 22.9 per cent but a decrease of 1 per cent in dollar equivalent due to the different exchange rate values within the periods.

Nigeria’s total public debt showed that $31.99 billion (or 37.82 per cent of the debt) was external while $52.59 billion (or 62.18 per cent of the debt) was domestic.

Further disaggregation of Nigeria’s foreign debt showed that $16.74 billion of the debt was multilateral; $502.38 million was bilateral (AFD) and another $3.26 billion bilateral from the Exim Bank of China, JICA, India, and KFW while $11.17 billion was commercial which are Eurobonds and Diaspora Bonds.

The debt conundrum leaves Africa in a dilemma considering the rising budget deficits coupled with the need to fund the deficits.

If Africa is to stop depending on donors and multilateral funds to finance its economic development, it needs to evolve towards market-based financing for the quantum of financing required.

In addition, African countries need to promote market-friendly policies that will attract capital to underserved sectors and allow the states to focus its limited financing on priority sectors such as education, health, and social services.

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AfriStakes Unveils Platform to Connect SMEs with Investors

Published

11 hours ago

April 18, 2026

Chike Onwuegbuchi

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AfriStakes has launched a new capital platform in Nigeria aimed at linking African small- and medium-scale enterprises with a broad range of investors in a move to address persistent funding gaps across the continent.

In a statement, the firm said the platform would improve capital allocation by bridging the disconnect between available funds, investment-ready businesses, and viable opportunities.

The launch comes as many African businesses continue to face funding constraints despite the availability of capital within the financial system.

AfriStakes said structural barriers have limited access to funding, even as capital remains concentrated in traditional instruments such as fixed deposits, equities, and managed funds.

The platform enables businesses and investors to connect directly by creating profiles, listing funding needs, and identifying suitable investment partners.

According to the company, businesses can upload key documents and showcase their funding requirements, while investors can outline their interests and financial capacity.

Founder of AfriStakes, Henry Adebisi, said the initiative was designed to tackle inefficiencies on both sides of the investment market.

“In Africa, businesses suffer from low access to capital while investors suffer from low access to investable opportunities. With AfriStakes, we ensure businesses are properly prepared and positioned for investment, while investors gain the clarity and confidence needed to deploy capital effectively,” Adebisi said.

The company noted that a major challenge for many SMEs is not a lack of value but poor investment readiness, which affects their ability to attract funding.

AfriStakes said it addresses this gap by providing a structured framework that helps businesses present financial information, develop investment narratives, and prepare realistic projections.

The platform also offers support services such as due diligence, deal structuring, and preparation of investor-facing materials.

It added that the platform would facilitate capital inflow from local and international investors, including individuals, angel investors, diaspora investors, entrepreneurs, and institutional players.

Adebisi said the platform would promote efficient capital flow into businesses driving economic growth across Africa.

“Our vision is to build a system where capital flows more efficiently into real businesses that drive economic change. By positioning both businesses and investors for success, we enable stronger investment decisions and more impactful economic outcomes,” he said.

AfriStakes said it supports multiple funding pathways, including debt financing, equity investment, partnerships, and acquisitions.

The company added that the platform would promote transparency, inclusivity, and structured investment processes across the African business landscape, adding that the initiative positions AfriStakes as a key player in addressing the continent’s financing challenges by creating a bridge between capital and opportunity.

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LG MoodUP™ Refrigerator Adds Expression and Innovation to the Kitchen

Published

11 hours ago

April 18, 2026

Chike Onwuegbuchi

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The modern kitchen is no longer just a place to cook, rather where families gather, conversations happen, and lifestyles are expressed. Today’s homeowners want appliances that don’t just work efficiently but also reflect their personality and enhance their living experience.

This is exactly where the LG MoodUP™ Refrigerator stands out. Designed to combine innovative technology, customizable design, and smart entertainment, the LG MoodUP Refrigerator transforms the kitchen into a vibrant, expressive, and connected space.

A Refrigerator That Matches Your Mood and Lifestyle

Traditional refrigerators focus solely on storage and cooling. The LG MoodUP Refrigerator takes a bold step further by redefining what a kitchen appliance can be.

At the heart of this innovation are colour‑changing LED door panels that allow users to personalise their refrigerator’s appearance. With just a few taps via a smartphone app, you can effortlessly change the colors of the refrigerator doors to match your mood, décor, or occasion.

Whether you prefer calm neutral tones, vibrant colours for entertaining guests, or subtle lighting for a relaxed evening at home, the LG MoodUP adapts seamlessly.

Customizable LED Panels: Design Meets Technology

One of the most striking features of the LG MoodUP Refrigerator is its customizable LED door panels. These panels offer multiple colour options and lighting combinations, helping you create a kitchen that truly reflects your personality.

Why This Matters for Modern Homes

Enhance kitchen aesthetics without renovations
Allows you to refresh your space instantly
Creates a dynamic, stylish focal point in the kitchen
Ideal for design‑conscious homeowners and young professionals

In Nigerian homes where kitchens are increasingly becoming open, social spaces, this feature adds a unique blend of style and innovation.

Built-In Bluetooth Speaker: Entertainment at the Heart of Your Home

The LG MoodUP Refrigerator goes beyond design by introducing entertainment into the kitchen. With a built‑in Bluetooth speaker, users can connect their smartphones directly to the refrigerator.

This allows you to:

Play music while cooking
Listen to podcasts or radio shows
Enjoy audio while hosting family or friends
Make daily kitchen routines more enjoyable

From meal prep to weekend gatherings, the kitchen becomes a more social and engaging environment.

Smart Technology for Smarter Living

LG is known globally for pioneering smart home solutions, and the MoodUP Refrigerator reflects this commitment. Using LG’s intuitive app interface – LG ThinQ, users can control lighting, sounds, and certain settings directly from their smartphones.

This smart connectivity ensures:

Easy customization
Seamless user control
A modern, connected kitchen experience

For tech‑savvy Nigerian consumers looking to integrate smart appliances into their homes, the LG MoodUP Refrigerator fits perfectly into today’s digital lifestyle.

Designed for Style, Comfort and Everyday Use

Beyond its innovative features, the LG MoodUP Refrigerator remains a high‑performance refrigerator built for daily use. It delivers reliable cooling performance, efficient food preservation, and durable construction expected from LG appliances.

Key lifestyle benefits include:

Elegant, premium design
Reliable cooling efficiency
Smart functionality without complexity
A blend of practicality and visual appeal

This makes it ideal for homes that value both performance and style.

Why LG Continues to Lead in Home Innovation

LG’s approach to product development focuses on understanding how people live today and how technology can improve everyday moments. The MoodUP Refrigerator is a strong example of this philosophy, demonstrating that appliances can be both functional and expressive.

Rather than blending into the background, the LG MoodUP stands out as a lifestyle statement; one that reflects individuality, creativity, and modern living.

For anyone looking to upgrade their kitchen experience and embrace the future of smart living, the LG MoodUP Refrigerator delivers a bold and refreshing approach where your kitchen truly matches your mood.

For more information, kindly visit https://www.lg.com/africa/refrigerators/lg-gr-a24fdmmb

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Nigeria’s Human Capital Key to Global Competitiveness – NITDA DG

Published

11 hours ago

April 18, 2026

Ugo Onwuaso

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Kashifu Inuwa, National Information Technology Development Agency (NITDA), has emphasized the critical role of Nigeria’s human capital in driving national development and positioning the country for global competitiveness.

Nigeria’s Human Capital Key to Global Competitiveness - NITDA DG

The DG of NITDA, Kashifu Inuwa Abdullahi, alongside the Executive Secretary of the Almajiri Commission, Dr. Muhammad Sani Idris, with management team of both organisations in a group photograph at the end of the visit held at NITDA’s headquarters in Abuja

Speaking while receiving a delegation from the National Commission for Almajiri and Out-of-School Children’s Education at the agency’s headquarters in Abuja, Inuwa noted that Nigeria’s youthful and rapidly expanding population presents a unique opportunity at a time when many countries are facing ageing populations and declining workforces.

He explained that the global demand for technical talent is projected to significantly outstrip supply by 2030, creating a window for Nigeria to emerge as a major contributor to the global workforce.

According to him, “with the right investments in education and digital skills, Nigeria can transform its demographic advantage into a powerful engine for economic growth and global relevance.”

The NITDA boss stressed that the country has the potential to become a global talent hub and a net exporter of skilled professionals.

Reframing migration narratives, he described Nigerians in the diaspora as valuable national assets who contribute through remittances and knowledge transfer, noting that diaspora inflows remain one of Nigeria’s most stable sources of foreign exchange.

Drawing comparisons with India, Inuwa highlighted how sustained investments in human capital have enabled the Asian nation to produce top executives in leading global technology firms. He attributed this success to a deliberate system of talent development and global placement.

Addressing Nigeria’s out-of-school population, he said equipping millions of underserved individuals with digital skills could unlock vast economic opportunities and help bridge the global talent gap.

Central to this ambition, he said, is NITDA’s National Digital Literacy Framework, which targets achieving 95 per cent digital literacy nationwide by 2030.

The framework focuses on six key areas: device and software operation, information and data literacy, digital content creation, digital marketing, online safety, and problem-solving.

Inuwa further explained that digital skills could transform critical sectors such as agriculture and commerce.

Farmers, he said, can leverage digital tools and smartphones to improve productivity through data-driven decisions, while small-scale traders can expand their reach and boost income using online platforms.

On implementation, he unveiled the “Digital Literacy for All” initiative, which targets students, workers, and participants in the informal sector.

He also disclosed ongoing partnerships with global organisations aimed at training civil servants and strengthening institutional capacity.

The NITDA DG reaffirmed the agency’s commitment to collaborating with the Almajiri Commission to establish digital learning centres, develop training programmes in indigenous languages, and deploy instructors to Almajiri schools across the country.

Earlier, the Executive Secretary of the commission, Muhammad Sani Idris, commended NITDA’s efforts in promoting digital literacy, describing them as crucial to bridging Nigeria’s education gap.

He expressed concern over the growing number of out-of-school children, noting that the traditional Almajiri system—originally designed for Qur’anic education—has been weakened by years of neglect and socio-economic pressures.

According to him, many children are sent far from home without adequate care, exposing them to exploitation and insecurity.

Idris called for coordinated action among government, communities, and development partners to address the crisis, highlighting the trans-border nature of the Almajiri system and the need for strategic collaboration.

He also expressed optimism about deepening partnerships with NITDA to leverage digital innovation in expanding access to education and creating better opportunities for millions of Nigerian children.

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