Wednesday, May 01, 2013


...these kinds of deals will happen more often now that Africom has arrived.  This is great for the continent, but this is early in the game.  There is still a large tradition of "get what I can...NOW" for obvious reasons in Africa and building a culture that "cough" respects and understands the time-preference value of consumption "cough", will be challenging.  Law and (especially) Order will help immensely.

Rwanda's debt, which has to be paid back by 2023, carries a coupon of 6.625 per cent, which is the annual interest the government will be paying for the $400m (about Rwf250b) acquired by issuing the bond.
While some analysts were wondering if it wouldn't be smart for Rwanda to use the recently discovered confidence of investors in its economy and borrow more money that it needs to finance its infrastructure projects, the government will apparently not rush to take more loans.
"We can't afford to borrow up to a dangerous level," Gatete said, highlighting that his is a "responsible" government. "No one has money to give out free of charge."

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