• Super Admin
• 06 Mar, 2026

Africa's loan and capital markets are entering a more constructive phase, driven by improved global liquidity and growing investor appetite, though debt sustainability concerns across the continent remain a persistent challenge, according to Narisa Balgobind, Head of Debt for Africa Regional Operations at Absa Corporate and Investment Banking. In an exclusive interview with NewsGhana following the inaugural Loan Market Association (LMA) and International Capital Market Association (ICMA) Annual Africa Summit in Cape Town, Balgobind offered a detailed reading of the forces reshaping how African governments and corporates access finance. Recent Eurobond issuances from Benin, Nigeria, Egypt, and Ivory Coast, all of which were oversubscribed, provide the clearest signal yet of returning appetite for African sovereign debt, she said. But the structural shifts happening beneath that headline trend are equally significant. On cross-border syndicated lending, Balgobind described a market where international banks, Development Finance Institutions (DFIs), regional lenders, and private sector creditors are increasingly pooling capital to finance infrastructure, mining, energy, and telecoms transactions at a scale domestic markets alone cannot support. African borrowers are benefitting from longer tenors and competitive pricing that reflects global rather than local credit conditions, she noted, adding that regional banks are now actively leading syndicated transactions and driving capital flows into the continent. Asked why corporate bond markets remain underdeveloped relative to Africa's economic growth, Balgobind pointed to structural and macroeconomic constraints that vary by country. Borrowers across the continent have traditionally preferred the loans market, where banking relationships tend to deliver flexible terms and competitive pricing. Bonds, she explained, are seen as more demanding, requiring greater disclosure, formal credit ratings, and stricter legal and regulatory compliance. On blended finance, she was direct about its continued relevance: given the sheer scale of infrastructure demand across the continent, commercial lending alone cannot meet it. Blended structures allow projects to access international capital markets while drawing on credit enhancements that reduce risk for investors. The evolution toward multi-instrument funding models, where a single project or corporate raises capital simultaneously from syndicated loans, bonds, development finance, export credit, and private equity, is enabling the financing of larger, more complex transactions than any single source could support. The summit, which brought together over 1,000 senior stakeholders including issuers, investors, regulators, DFIs, and banks, focused on capital market development, sustainable finance, blended finance, and market infrastructure across Africa's loan and bond markets. On the policy front, Balgobind's prescription is straightforward: governments must create conditions that attract foreign investment through macroeconomic stability and credible regulatory and legal frameworks. The long-term prize, she said, is significant. Greater adoption of syndicated lending, expanded blended finance, and deeper bond markets would represent a structural shift in the African financial system, accelerating the continent's economic transformation and diversifying the funding base on which that transformation depends. Source: https://www.newsghana.com.gh/absas-narisa-balgobind-on-what-is-reshaping-african-capital-markets/