Finance for Development Lab
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findevlab.bsky.social
Finance for Development Lab
@findevlab.bsky.social
A think-tank hosted at CEPREMAP in Paris working on #development #finance // Think-tank hébergé par le CEPREMAP, à Paris, sur la finance du développement
This research emphasizes the need for nuanced interpretations of SSA ratings. A must-read for anyone in African economics & finance. Dive into the full paper here👇
findevlab.org/sub-saharan-...
#Africa #SovereignRatings
Tracing the Drivers of SSA’s Low Sovereign Credit Ratings
Tracing the Drivers of Sub-Saharan Africa's Low Sovereign Credit Ratings By Tatiana Lysenko Sovereign credit ratings are crucial to Sub-Saharan Africa's
findevlab.org
September 8, 2025 at 10:26 AM
Key Finding #2: ✅ The paper finds NO statistical evidence that S&P consistently biases SSA sovereign ratings upward or downward after accounting for key factors. This highlights the complexity of rating SSA. #CreditRisk #EmergingMarkets
September 8, 2025 at 10:26 AM
Key Finding #1: ✅ Slow-moving structural indicators (GDP per capita & institutional quality) are the MOST important rating drivers, alongside fiscal & external vulnerabilities #EconomicPolicy #Investment
September 8, 2025 at 10:26 AM
Why are these ratings so important? 🤔 Sovereign credit ratings are vital to SSA's financial landscape, but debates rage over their accuracy and fairness. This paper dives deep into the structural factors at play.
September 8, 2025 at 10:26 AM
Innovative solutions like climate-resilient debt clauses can enhance LICs' financial resilience.
👇Download our latest paper to read more on this topic (link in comments). #SovereignDebt #Eurobonds #DevelopingCountries #SustainableFinance #ClimateResilience
July 22, 2025 at 9:27 AM
Key takeaways:✅ Conventional Eurobonds can cause resource leakage, divert funds from crucial investments.
✅ LICs need sustainable financing aligned with SDGs, but face obstacles.
✅ Better governance & transparency can lower costs & boost investor confidence.
July 22, 2025 at 9:27 AM
🔍 Global uncertainties—US trade policies, potential rate hikes—complicate the picture.💡With tight public funds & rising investment needs, private capital flows are increasingly important. 📊 Our 20-year data shows a shift from bank loans to bonds for external financing.
July 17, 2025 at 2:01 PM
🔍 Read the full paper for insights on harnessing guarantees to mobilize private capital for climate action! Link to Paper 👇
findevlab.org/maximizing-c...
#ClimateFinance #BlendedFinance #PrivateInvestment
July 11, 2025 at 7:18 AM
With strategic design and collaboration among MDBs, DFIs, and agencies, we can maximize leverage and attract more private investments. Addressing legal, political, and pipeline barriers is crucial.
July 11, 2025 at 7:18 AM
Guarantees help reduce risks—performance, tech, liquidity—and improve project bankability. Yet, they represent only about 4% of multilateral development bank commitments, with limited access in lower-income countries.
July 11, 2025 at 7:18 AM
Examples like #Barbados vs. #SriLanka and #Kenya vs. #IvoryCoast show that credible, swift debt restructuring—based on transparency, trust, and coordinated effort—can be an effective solution.
July 4, 2025 at 5:36 AM
Sometimes, defaulting might be the way to restore access—a coordinated global response is needed. #SovereignDebt
July 4, 2025 at 5:36 AM
Capital is flowing to safe havens, hurting emerging markets. Confidence is shaky. IMF & multilateral institutions are boosting funds. But many countries still face tariffs, fragility, debt pressures. #DebtManagement
July 4, 2025 at 5:36 AM