Last month, Ryan took a look at the impact of the financial crisis on microfinance in Latin America, arguing that uncompetitive microfinance markets and small or inexperienced MFIs were responsible for increased premiums.
Vox has an informative article by two South African economists, Peter Draper and Gilberto Biacuana, highlighting the effects of declining trade flows on African growth. The first half of the piece offers an excellent summary of Sub-Saharan Africa's economic state as a result of the crisis. The authors argue that the crisis has affected Africa mostly through reduced exports and commodity prices, along with declining capital inflows.
IFC announced yesterday that it will issue a $43m local currency bond in Central Africa, a first for the World Bank institution, and also a first for a non-local financial institution. This is IFC's second local currency bond in Sub-Saharan Africa, following its issuance of a West African Kola Bond in late 2006:
A distinction is often made between informal firms operating within, versus outside, household premises. In some sense, the former represent the quintessential informal firms beset with a number of problems, such as low efficiency, etc. Policies aimed at bringing informal firms into the fold of the formal sector could therefore be expected to have a bigger impact when targeted toward informal firms operating within, rather than outside, the household.
While IFC is strengthening its involvement in India, China is deepening its economic ties in Africa.