{"id":44955,"date":"2026-09-08T15:23:19","date_gmt":"2026-09-08T13:23:19","guid":{"rendered":"https:\/\/www.channelafrica.co.za\/channelafrica\/?post_type=news&#038;p=44955"},"modified":"2026-09-08T15:23:28","modified_gmt":"2026-09-08T13:23:28","slug":"moodys-sees-ongoing-surge-in-africas-private-credit-market","status":"publish","type":"news","link":"https:\/\/www.channelafrica.co.za\/channelafrica\/news\/moodys-sees-ongoing-surge-in-africas-private-credit-market\/","title":{"rendered":"Moody&#8217;s sees ongoing surge in Africa&#8217;s private credit market"},"content":{"rendered":"<div>\n<p class=\"x_MsoNormal\">Africa&#8217;s private credit market is set for further expansion as companies and infrastructure projects seek alternatives to constrained bank lending, credit \u200bratings firm Moody&#8217;s said in a report on Tuesday.<\/p>\n<\/div>\n<div id=\"x_ms-outlook-mobile-signature\">\n<div>\n<p class=\"x_MsoNormal\">\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The continent&#8217;s \u200cprivate credit industry remains small but has grown rapidly in recent years, with assets under management rising to $5.6 billion at the end of 2025 from $1.8 billion in\u00a0\u200b2020, according to the report.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">Moody&#8217;s said demand would continue to \u200bbe supported by the region&#8217;s persistent financing gap, underdeveloped capital \u2060markets and limits on banks&#8217; ability and willingness to provide long-term financing, \u200bparticularly for infrastructure projects, medium-sized companies and small businesses.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The report added that \u200beven after the rapid growth in recent years, Africa accounts for just 0.3% of the global private credit market, which is estimated to be worth at least $1.8 \u200btrillion.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The ratings agency said development finance institutions would remain a key source \u200bof funding for the sector in Africa and could help mobilise international capital through \u200ccredit-enhanced \u2060and blended-finance structures.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">Such arrangements could support highly rated senior loan tranches and broaden the appeal of African private credit to institutional investors including pension funds and insurers.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">At the same time, private credit is unlikely to become \u200ba major competitor \u200bto African banks, \u2060as funds often lend through banks or co-finance transactions, particularly in infrastructure, where financing needs remain substantial.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">Moody&#8217;s said \u200bachieving significant scale would require the industry to demonstrate \u200bconsistent \u2060returns that compete with opportunities elsewhere, particularly given investor concerns about frontier-market risk and the mixed historical performance of Africa-focused private investment funds.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">The report also\u00a0\u2060highlighted\u00a0\u200bthat stock market capitalisation across the continent\u00a0\u200bstood at around 33% of GDP in 2024, well below the respective emerging market and global\u00a0\u200baverages of 61% and 113%.<\/p>\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">\n<\/div>\n<div>\n<p class=\"x_MsoNormal\">\u2014Reuters\u2014<\/p>\n<\/div>\n<\/div>\n","protected":false},"featured_media":20589,"template":"","meta":{"_acf_changed":false,"_links_to":"","_links_to_target":""},"news-type":[44],"class_list":["post-44955","news","type-news","status-publish","has-post-thumbnail","hentry","news-type-finance","entry"],"acf":{"short_description":"Moody's said demand would continue to\u00a0\u200bbe supported by the region's persistent financing gap.","published_date":"","news_description":"Moody's said demand would continue to\u00a0\u200bbe supported by the region's persistent financing gap","form_embed":"","author":"","image_caption":""},"_links":{"self":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/44955","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news"}],"about":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/types\/news"}],"version-history":[{"count":1,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/44955\/revisions"}],"predecessor-version":[{"id":44956,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news\/44955\/revisions\/44956"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media\/20589"}],"wp:attachment":[{"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/media?parent=44955"}],"wp:term":[{"taxonomy":"news-type","embeddable":true,"href":"https:\/\/www.channelafrica.co.za\/channelafrica\/wp-json\/wp\/v2\/news-type?post=44955"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}