Lenders bullish despite warning on capacity constraints in Africa

Global and African financial heads identified country risk as the biggest challenge to their ability to lend more to African countries. The abundance of current liquidity in the market did nothing to alleviate the capacity constraints faced by most banks when doing business in the continent, experts told a forum hosted by the African Trade Insurance Agency.

Lenders are bound by regulations that prevent them from lending significant amounts to sub-investment grade sovereigns, which is the case for most African countries.