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Business news for Wednesday, December 16, 2020
Source: GNA
2020-12-16
Logo of the Economic Commission for Africa
The Economic Commission for Africa (ECA) on Tuesday released its flagship Economic Report on Africa (ERA), which empowers the continental private sector to prosper and drive economic growth and recovery.
The report entitled: “Innovative Financing for Private Sector Development in Africa”, analyzes innovative financing as a way to provide solutions to the challenges of financing the private sector, to increase its resistance to the effects of the global coronavirus pandemic.
The report was prepared by CEPA’s Private Sector Finance and Development Division and sent to the Ghana News Agency.
The Report was presented during a virtual launch attended by some of Africa’s most eminent minds in the business and financial sectors, government officials, civil society, academia, representatives of the public and private sectors, as well as partners for the development.
Speaking at the launch, Dr. Vera Songwe, Executive Secretary, expressed the hope that the analysis in the ERA will enable stakeholders, particularly during and after the COVID-19 pandemic, to analyze how funding and tools Innovative solutions for infrastructure, agriculture and technology are being designed as the continent tries to cope with the COVID-19 pandemic.
The Report examines the innovative financial instruments, practices and policies necessary for African countries to make a radical change in the growth of the range of businesses, including startups, micro and small businesses, social enterprises, professional companies, listed companies, and public-private companies, which will drive inclusive economic growth, create jobs, and create pathways to improve the livelihoods of Africans.
His key recommendations include regulating the banking and financial services sector; create financial stability through effective policies; modify and update the legislation and regulatory policies of the financial sector; and promote innovative financing from the private sector.
The report also calls on African nations to adopt the continent’s Digital Transformation Strategy and the African Continental Free Trade Area (AfCFTA) to streamline policies and regulation.
Given that the end of COVID-19 is uncertain, the Report calls on African governments to explore the full range of policy measures to stabilize the financial system and allow continued financing from the private sector; increase government capacity; strengthen the resilience of the financial sector; and supporting all financial innovations that could mitigate the impact of the pandemic on African economies.
Dr. Adelaide Matlanyane, Governor of the Central Bank of Lesotho, emphasized that infrastructure financing must come from capital markets, pension funds and other sources of financing, adding that, in the context of COVID-19, this was the best time to adopt strong policy frameworks for Africa.
“We have to find solutions adaptable to the unique circumstances of Africa. Governments should move to the provision of electronic services and adopt technology to improve financial inclusion, “he added.
Dr. Louis Rene Peter LaRose, former Seychelles Minister of Finance, said: “The way we view development aid must change. We need to access the private capital markets and be innovative, proactive and risk takers.
Dr Andrew Mwaba, Board of Directors of the Bank of Zambia, said Africa needs strong banks and institutions for the market to function. He noted that equity markets present key financing opportunities, and utility pricing offers more financing opportunities. He stressed the need for governments and regulators to relax restrictions to allow foreign investors to provide additional financing.
Dr. Iraj Abedian, founder and CEO of Pan-African Capital Holdings (Pty) Ltd, said; “The fragmentation of regulation hinders the development of financial technologies (FinTech), which requires scale to be successful. We need to find profitable projects and maximize the circular flow of financing on the continent; We have to take the consolidation of the markets seriously ”.
Mr. Mohammed Ibrahim from the Ministry of Finance of the Public Treasury, Egypt, for his part said; “As we continue to grapple with the COVID pandemic, the development of capital markets and digitization are key avenues for the continent. Climate and disaster risk financing also plays a key role in the future ”.
Mauritania Finance Minister Mohamed Lemine Dhehby highlighted the need to learn from past financial crises, adopt responsible investment and reap the benefits of Islamic banking.
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