African lenders risking it all with government bonds

The European Investment Bank's latest annual report on financing in Africa says lenders' appetite for state securities is a risk to them.

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African banks are exposing themselves to potential losses with heavy investments in government securities while starving the private sector the much- needed credit.

The European Investment Bank (EIB) says in its latest annual finance in Africa report that the lenders’ appetite for government securities is a risk to them, even as it has also contributed to limited and expensive credit to private sector players.