Mohapatra, SanketRatha, DilipPlaza, Sonia2012-05-302012-05-302008-04https://hdl.handle.net/10986/6701Given Sub-Saharan Africa's enormous resource needs for growth, poverty reduction, and other Millennium Development Goals, the development community has little choice but to continue to explore new sources of financing, innovative private-to-private sector solutions, and public-private partnerships to mobilize additional international financing. The paper suggests several new instruments for improving access to capital. An analysis of country creditworthiness suggests that many countries in the region may be more creditworthy than previously believed. Establishing sovereign rating benchmarks and credit enhancement through guarantee instruments provided by multilateral aid agencies would facilitate market access. Creative financial structuring, such as the International Financing Facility for Immunization, would help front-load aid commitments, although these may not result in additional financing in the long run. Preliminary estimates suggest that Sub-Saharan African countries can potentially raise USD 1-3 billion by reducing the cost of international migrant remittances, USD 5-10 billion by issuing diaspora bonds, and USD 17 billion by securitizing future remittances and other future receivables. African countries that have recently received debt relief however need to be cautious when resorting to market-based borrowing.CC BY 3.0 IGOACCESS TO CAPITALACCUMULATION OF DEBTASSET CLASSASYMMETRIC INFORMATIONBACKED SECURITIESBALANCE OF PAYMENTSBANK CREDITBANK GUARANTEESBANK LENDINGBANK LOANSBANKING CORPORATIONSBANKING SYSTEMBANKRUPTCYBANKRUPTCY LAWSBASIS POINTBASIS POINTSBOND BANKBOND FINANCINGBOND FUNDBOND INDEXBOND ISSUANCEBOND ISSUEBOND MARKETSBONDHOLDERSBONDSBORROWERBORROWING COSTSBUY BACKCAPITAL FLOWSCAPITAL MARKETCAPITAL MARKET ACTIVITIESCAPITAL MARKETSCAPITAL OUTFLOWSCHECKSCOLLATERALCOLLATERALIZATIONCOMMERCIAL BANKCOMMERCIAL BANK LENDINGCOMMERCIAL TERMSCOMMODITY PRICECONTINGENT LIABILITIESCONTRACT ENFORCEMENTCONTRACTUAL OBLIGATIONSCORPORATE BONDSCOUPONCREDIT AGENCIESCREDIT CARDCREDIT ENHANCEMENTCREDIT GUARANTEESCREDIT HISTORYCREDIT RATINGCREDIT RATING AGENCIESCREDIT RATINGSCREDIT RISKCREDIT RISKSCREDITORCREDITOR RIGHTSCREDITORSCREDITWORTHINESSCURRENCYCURRENCY DEVALUATIONDEBTDEBT FORGIVENESSDEBT INSTRUMENTDEBT ISSUERSDEBT RELIEFDEBT SOURCEDEBT STOCKDEBT STOCKSDEBT-SERVICEDEBTSDEFAULT RATINGDERIVATIVEDERIVATIVE INSTRUMENTSDEVALUATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKDOMESTIC BANKSEMERGING MARKETEMERGING MARKET COUNTRIESEMERGING MARKETSEQUIPMENTEQUITY FLOWSEQUITY STAKESEXPORTERSEXTERNAL BORROWINGEXTERNAL FINANCEEXTERNAL FINANCESFINANCIAL CRISISFINANCIAL DEVELOPMENTFINANCIAL FLOWSFINANCIAL FUTUREFINANCIAL INSTITUTIONSFINANCIAL MARKETSFINANCIAL STRUCTURESFINANCIAL SUPPORTFINANCIAL SYSTEMFIXED INVESTMENTSFOREIGN CURRENCYFOREIGN CURRENCY DEBTFOREIGN DIRECT INVESTMENTFOREIGN EXCHANGEFOREIGN INVESTORSGLOBAL BANKINGGLOBAL DEBTGLOBAL DEVELOPMENT FINANCEGOVERNMENT DEBTGROSS DOMESTIC PRODUCTHOST COUNTRIESHOST COUNTRYIMMUNIZATIONINCOME DIFFERENTIALSINFORMATION ASYMMETRIESINFORMATIONAL ASYMMETRIESINSURANCEINSURANCE COMPANIESINSURANCE MARKETINTEREST RATEINTEREST RATE SPREADINTEREST RATESINTERNATIONAL BANKINTERNATIONAL BONDINTERNATIONAL BOND ISSUESINTERNATIONAL BOND MARKETINTERNATIONAL BONDSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL DEBTINTERNATIONAL DEVELOPMENTINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL INVESTORSINTERNATIONAL MARKETSINTERNATIONAL RATING AGENCIESINTERNATIONAL RATING AGENCYINTERNATIONAL SETTLEMENTSINVESTINGINVESTMENT BANKINGINVESTMENT DECISIONSINVESTMENT PROJECTSINVESTMENT RATEINVESTOR INTERESTLEGAL ENVIRONMENTLEGAL SYSTEMSLENDERSLEVIESLEVYLINE OF CREDITLIQUIDITYLIQUIDITY CRISESLIQUIDITY CRISISLOANLOAN MARKETSLOCAL CURRENCIESLOCAL CURRENCYLONG-TERM CAPITALLONG-TERM DEBTMACROECONOMIC ENVIRONMENTMACROECONOMIC INSTABILITYMACROECONOMIC MANAGEMENTMARKET ACCESSMATURITIESMATURITYMATURITY MISMATCHMOBILE PHONEMONETARY FUNDNATIONAL BANKSPARTIAL CREDITPARTIAL GUARANTEESPARTIAL RISKPENSIONPLEDGESPOLITICAL RISKPORTFOLIOPORTFOLIO DIVERSIFICATIONPORTFOLIO FLOWSPRIVATE BONDPRIVATE CAPITALPRIVATE DEBTPRIVATE DEBT FLOWSPRIVATE FINANCINGPRIVATE FOREIGN INVESTORSPRIVATE INVESTMENTPROPERTY RIGHTSPUBLIC ASSETPUBLIC DEBTPUBLIC INVESTMENTRATES OF RETURNRELIANCE ON SHORT-TERM DEBTREMITTANCEREMITTANCE SERVICEREMITTANCE SERVICESREMITTANCESREPAYMENTSRETURNSRISKY BORROWERSSALE OF SECURITIESSECURITIESSHORT-TERM CAPITALSHORT-TERM DEBTSHORT-TERM EXTERNAL DEBTSOVEREIGN BONDSOVEREIGN ENTITIESSOVEREIGN RATINGSOVEREIGN RATINGSSOVEREIGN RISKSTOCK MARKETSTAXTELECOMMUNICATIONSTERRORISMTRADE CREDITTRADE CREDITSTRADE FINANCETRADE FINANCINGTRADINGTRANSACTIONTRANSACTION COSTSTRANSPARENCYTREASURYTREATYTRUSTEEWorld Bank10.1596/1813-9450-4609