With the expected attendant hike in interest rates as observed in Eastern Europe and South Asia and recent depreciation of the local currencies witnessed across the continent, meeting of foreign currency loan obligations by the African private sector may be more difficult, especially for those companies that are net savers of foreign exchange.
Consolidating implementation of export-oriented, as well as capacity and productivity enhancing policies through reducing the costs of doing business in the African economies could assist entities to access domestic credit and reduce refinancing risks.