Bad debts are rising in Africa, curtailing banks’ ability to pump fresh credit into economies struggling to recover from Covid-19. Options for offloading toxic loans are limited on the continent but an IFC initiative is working to stimulate a vibrant secondary market for NPLs.
Last year IFC partnered with Nimble Group, a South African distressed debt investor, to buy $90m of unsecured retail nonperforming loan portfolios in South Africa, Namibia, Botswana, Lesotho and Eswatini. This acquisition is IFC’s first in Africa under its Distressed Assets Recovery Program which over the last decade has supported distressed asset markets across the world.
Source: The Africa CEO Forum
