Morocco’s removal from the Financial Action Task Force’s so-called gray list in February will “definitely” make it easier and cheaper for the sovereign to raise debt, Finance and Economy Minister Nadia Fettah Alaoui said. Countries are included on the list because of shortcomings in tackling money laundering and terrorist financing, and are subjected to greater oversight.
(Bloomberg) — Morocco’s removal from the Financial Action Task Force’s so-called gray list in February will “definitely” make it easier and cheaper for the sovereign to raise debt, Finance and Economy Minister Nadia Fettah Alaoui said. Countries are included on the list because of shortcomings in tackling money laundering and terrorist financing, and are subjected to greater oversight.
Alaoui told the Bloomberg New Economy Gateway Africa forum in Marrakesh, Morocco, on Tuesday that investors have already rewarded Morocco for what she termed the strong reforms it had enacted and its medium-term agenda. Among the steps it had taken was expanding access to social welfare in a country with a large informal economy.
“People weren’t willing to register at the social security agency as they worried it was just another way for the state to collect additional taxes and fees,” she said. “The moment they see that they can benefit from social security and go to hospital they definitely are willing to pay for their own taxes.”
African Health Care in Spotlight (June 13, 6 p.m.)
Afsane Jetha, co-founder and chief executive officer of Alta Semper Capital told the forum he sees an “incredible opportunity” to invest in health care in Africa as governments realize the importance of the health security following the pandemic.
Lamia Tazi, the CEO and chairwoman of Sothema de Therapeutique Marocaine, a Moroccan pharmaceutical company, sees a lack of intellectual property protection as one of the main barriers to developing vaccines and other pharmaceutical products in Africa.
And Viraj Rajadhyaksha, area medical director of Middle East and Africa at AstraZeneca Plc, highlighted the importance of developing testing laboratories and other health care infrastructure within Africa to serve its needs, rather than relying on resources from abroad.
IMF Sees Zambia Deal Soon (June 13, 5:04 p.m.)
Zambia’s creditors are close to agreeing to a long-awaited debt restructuring deal that will allow the International Monetary Fund to disburse $188 million to the distressed African nation.
“We’ve had initial agreements to provide financing assurances so the IMF can proceed with providing financing with Zambia,” Abebe Aemro Selassie, director of the fund’s African Department, said during a panel discussion at the forum.
The fund and Zambia are having “very, very active discussions and we are very hopeful that something will come through in the next few weeks,” he said.
Read more: Zambia’s Creditors Close to Debt Restructuring Deal, IMF Says
Africa’s Blended Financing Options (June 13, 4:17 p.m.)
More than 70 low-income nations face a collective $326 billion debt burden, according to the IMF. About 15% of low-income countries are already in debt distress and another 45% face high debt vulnerabilities, and the list is growing.
African nation’s have “too much debt” and the wrong kind of obligations, Anne-Laure Kiechel, founder and chief executive officer of Global Sovereign Advisory, said at the forum. Blended financing, with a mix of commercial and concessional loans will help countries lower the cost of finance, she said.
Risk Perception Is Unwarranted: Corporate Council on Africa (June 13, 3:31 p.m.)
The perception of risk in Africa, especially in the US, “is higher than actually warranted on the continent,” according to Florizelle Liser, president and chief executive officer of the Corporate Council on Africa.
American companies are looking for predictability, transparency and the right investor-friendly environment that will allow them to bring capital in but also take it out, Liser said.
“One of the perceptions of risks has been not making a distinction between the whole continent,” said Rajakumari Jandhyala, managing partner and founder at Yaatra Ventures. “If you’re willing to invest in Ukraine and Afghanistan, clearly you can invest in East Africa.”
Morocco Air Plans Fleet Expansion (June 13, 2:48 p.m.)
Royal Air Maroc is putting the final touches to a tender to buy new long- and medium-haul aircraft to meet an expected increase in tourist arrivals to Morocco and expand its network.
The state-owned carrier is looking to add “many new routes” around the world, Chief Executive Officer Abdelhamid Addou said in an interview at the Bloomberg New Economy Gateway Africa forum in Marrakesh, Morocco, on Tuesday. He sees Africa’s potential as particularly large and believes it should be developed by the continent’s own carriers.
The carrier has about 50 aircraft, most of which are Boeing Co. models.
Morocco Seeking Investors for Green Hydrogen Project (June 13, 2:30 p.m.)
Morocco is preparing to seek partners and investors for a much-anticipated large-scale green hydrogen project that’ll be able to export to Europe, Energy Transition Minister Leila Benali said.
“The work is nearly done,” she said at the forum. “The prime minister has announced that we will make the hydrogen offer public before the end of the year.”
Morocco is attracting growing interest from investors looking to export the green fuel to the European Union, given its geographical proximity and free trade agreement with the bloc.
Rugby Africa Calls for Greater Investment in Sport (June 13, 2:23 p.m.)
When it comes to sport, Africa’s biggest problem isn’t producing great athletes — a steady stream comes from the continent — but providing economic incentives for them to perform at home.
“The key is to bring investment back into Africa,” Herbert Mensah, president of Rugby Africa, said in an onstage interview. “The potential in Africa is massive. At the end of the day it’s all about money.”
Sports can play an important social role on the world’s youngest continent. “If you’ve got young people involved in sports, they’re not going to get up to mischief,” he said.
–With assistance from Matthew Hill, Jennifer Zabasajja, Mike Cohen, Amogelang Mbatha, Antony Sguazzin and Souhail Karam.
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