Browsed by
Tag: Bridge

A Bridge To Economic Recovery: Be Aware Of Financial Stability Risks

A Bridge To Economic Recovery: Be Aware Of Financial Stability Risks

By Tobias Adrian, Financial Counsellor and Director of the IMF’s Monetary and Capital Markets Department

Despite a global economic crisis comparable only to the Great Depression, near-term financial stability risks have been contained with the help of unprecedented monetary policy easing and massive fiscal support across the globe. But many economies had pre-existing vulnerabilities – which are now intensifying, representing potential headwinds to the recovery.

Extraordinary policy measures have stabilized markets, boosted investors’ sentiment, and maintained the flow of credit to the global economy. Critically, these measures helped prevent a slowing economy and sliding financial markets from feeding on each other in a destructive vicious cycle.

The rebound in asset prices and the easing in global financial conditions have benefited not only advanced economies, but also emerging markets. In addition, unlike in previous crises, emerging markets this time were also able to respond by cutting policy rates, injecting liquidity and, for the first time, employing asset purchase programs.

Beware of the real-financial disconnect

The significant improvement in financial conditions has helped maintain the flow of credit to the economy, but the economic outlook remains highly uncertain. A disconnect persists, for example, between financial markets – where there have been rising stock market valuations (despite the recent repricing) – and the weak economic activity and uncertain outlook. This gap can gradually narrow if the economy recovers swiftly. But if the recovery is delayed, for example because it may take longer to get the virus under control, the investor optimism may wane.

As long as investors believe that markets will continue to benefit from policy support, asset valuations may stay elevated for some time. Nonetheless, and especially if the economic recovery is delayed, there is a risk of a sharp adjustment in asset prices or periodic bouts of volatility.

Corporate sector vulnerabilities

Read the rest
Nigeria: Abu – Adequate Telecoms Towers Will Bridge Infrastructure Gap

Nigeria: Abu – Adequate Telecoms Towers Will Bridge Infrastructure Gap

The Chief Executive Officer of Pan African Towers Limited, an indigenous infrastructure company, Mr. Wole Abu, speaks about the need for government to support additional deployment of telecoms masts and towers, to bridge Nigeria’s infrastructure gap and enhance access to telecoms services in underserved communities. Excerpts:

What’s your general assessment of the infrastructure segment of the African telecoms market, where you currently operate?

The infrastructure segment of the African telecoms market has actually seen a lot of growth since the entrance of major players at the global level into Africa around 2012. From then, infrastructure and tower deals have grown year on year. Also, it is beginning to see cloud and fibre deployment at an increasing rate in Africa. So, infrastructure for telecommunication is growing and this is being driven by demand. In terms of adequacy, off course, there is still a demand-supply gap. Infrastructure is still not adequate. We still have a huge gap in that space. In Nigeria, filling the gap will demand an estimated investment worth $136 billion, according to the Ministry of Communication and Digital Economy, and the Nigerian Communications Commission (NCC) .

Over the years, and even before the coming of Pan-African Towers, deploying infrastructure has been faced with some bottlenecks. What are those challenges you have identified since you commenced operation?

Truly, many challenges are bedeviling the sector. There are social challenges like theft, vandalism, community issues and so on. And also, there are the business environment issues like multiple taxation, unfavourable or harsh government policies, forex scarcity and lack of long-term capital for investment in infrastructure in local currency. All these are the issues. Then of course, you also look at failure in power supply. Availability of power is important since all telecoms infrastructure, which are distributed across the country, rely on

Read the rest
Abu: Adequate Telecoms Towers Will Bridge Infrastructure Gap

Abu: Adequate Telecoms Towers Will Bridge Infrastructure Gap

Chief Executive Officer of Pan African Towers Limited, Mr. Wole Abu

The Chief Executive Officer of Pan African Towers Limited, an indigenous infrastructure company, Mr. Wole Abu, speaks about the need for government to support additional deployment of telecoms masts and towers, to bridge Nigeria’s infrastructure gap and enhance access to telecoms services in underserved communities. Emma Okonji presents the excerpts:

What’s your general assessment of the infrastructure segment of the African telecoms market, where you currently operate?

The infrastructure segment of the African telecoms market has actually seen a lot of growth since the entrance of major players at the global level into Africa around 2012. From then, infrastructure and tower deals have grown year on year. Also, it is beginning to see cloud and fibre deployment at an increasing rate in Africa. So, infrastructure for telecommunication is growing and this is being driven by demand. In terms of adequacy, off course, there is still a demand-supply gap. Infrastructure is still not adequate. We still have a huge gap in that space. In Nigeria, filling the gap will demand an estimated investment worth $136 billion, according to the Ministry of Communication and Digital Economy, and the Nigerian Communications Commission (NCC) .

Over the years, and even before the coming of Pan-African Towers, deploying infrastructure has been faced with some bottlenecks. What are those challenges you have identified since you commenced operation?

Truly, many challenges are bedeviling the sector. There are social challenges like theft, vandalism, community issues and so on. And also, there are the business environment issues like multiple taxation, unfavourable or harsh government policies, forex scarcity and lack of long-term capital for investment in infrastructure in local currency. All these are the issues. Then of course, you also look at failure in power supply. Availability of power

Read the rest