The next 12 months will be crucial for Kenya as it holds its first elections since its tumultuous 2007 polls. It will also try to recover quickly from last year’s spike in inflation, which sent interest rates soaring. Nonetheless, the country's economy remains strong and many are optimistic Kenya can reach middle-income status by 2030.
Europe’s corporate bond market started 2012 at a ferocious pace as investors flocked to what they increasingly perceive as a safe haven. While issuance may slow later in the year, few believe the market is a bubble waiting to burst, and there is a widespread feeling that its heyday will last a good while yet.
Côte d’Ivoire’s economy was battered by the near civil war that broke out following elections in late 2010. The new government has made a good start in trying to repair the damage, but its finance minister knows it has more to do to regain the trust of foreign investors.
Rwanda’s banks have benefited from the country’s rapid development since its genocide less than 20 years ago. With a high unbanked population and expectations of continued near double-digit economic growth, their rise is unlikely to slow soon. But the banks will have to boost their efficiency quickly if they want their profitability to match that of other east African lenders.
Kenya’s banks have proved themselves to be among Africa’s savviest and most innovative when it comes to tapping the unbanked market, which has helped them and their profits expand quickly in the past few years. And with a significant proportion of the market still unbanked, not to mention a relatively small number of mortgages in the country, there is still room for further growth.
Senegal has established itself as one of sub-Saharan Africa’s most sophisticated economies in the past decade. Lacking the natural resources prevalent in many of the continent’s other fast-growing countries, its pillars of growth have been political stability and prudent fiscal management. But next month’s elections will put its credentials to the test.
Senegal’s banking system is one of Africa’s most competitive. Yet there is plenty of scope for its lenders to expand, thanks to fast economic growth and a large unbanked population. If this rise is managed carefully, Senegal will soon be firmly entrenched as the main banking hub in French-speaking west Africa.
The offshore renminbi bond market has seen a surge of issuance in the past year, with bankers predicting that 2012 will be even busier. This does not mean an easy ride for borrowers, however, with investors expecting higher yields as they no longer buy into the market solely on the basis of the strengthening currency.
The proposals by the UK's Independent Commission on Banking are likely to change investment banks’ business models in the country fundamentally. The biggest effect could be to increase their funding costs, which might force more UK companies to turn to bonds instead of loans. But plenty of questions remain unanswered.
Nigeria has revitalised its banks following their crisis two years ago. They are now far healthier and are once again making strong profits. But the shake up of the industry will continue for a while yet, as the affects of recent consolidation – including the creation of two new top tier banks – begin to be felt.
Junk bonds have suffered badly since the start of June, with investors being quick to sell off what is one of the riskiest fixed-income asset classes. But bankers point to the market’s underlying strengths and insist it will only get bigger in the long term.
Ngozi Okonjo-Iweala’s recent appointment as Nigeria’s economic tsar has led to high expectations that the country can finally start to fulfil its vast potential. But, despite her intellect, boundless energy and standing among investors, the task is a daunting one.
Mismanagement and corruption have stifled Nigeria's economy for decades. But this year’s elections have given hope that its leaders will finally embark on the deep reforms needed to modernise the resource-rich country and enable it to finally fulfil its vast potential.
By taking on their non-performing loans, Nigeria’s state-owned bank, Amcon, has played a pivotal role in ensuring that the country’s banks are up and running again just two years after their crisis. However, its chief executive is keen to stress that its work is far from over.