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On 23rd October 2018, the APRM, Dr McBride Nkhalamba and Mr Hugues Manzila who are in Geneva, Switzerland from 22nd to 26th October for the World Investment Forum 2018, attended the GLOBAL LEADERS INVESTMENT SUMMIT. The summit which examined the question of Investment in a new era of globalization and convened Heads of State and Government and CEOs of global companies was aimed at facilitating the sharing of visions for the future. The insights from the leaders set the tone for the rest of the Forum and were meant to inform its outcomes. Specifically, the Summit considered the backlash against globalization stemming from its unequal developmental impact, the risks in protectionism in both trade and investment, and related challenges to multilateralism. The Summit discussed solutions that would ensure that the international community work collectively to prevent this backlash from impeding the advancement of the SDGs. Key issues examined included; Globalization and the backlash on international investment and its impact on development; viable remedies in the investment policy making area; and how best can more people benefit from globalization.
Speaking at the Forum, Ms Nandini Sukumar, CEO of the World Federation of Exchanges highlighted a few considerations for investment in emerging markets. Of particular relevance to the AU-APRM Programme on International Credit Rating Agencies (ICRAs) in Africa was her concern over “Regulatory Coherence and Dissonance in emerging markets” which determines whether market-based financing may or may not flourish. Sukumar argued that “while national regulatory environment is important, region-wide and global regulatory coherence allows for more efficient flows. This argument suggests that the African Union – APRM initiative on International Credit Rating Agencies may have to ensure regulatory coherence among African states in regulation of ICRAs.
A recent study conducted by the APRM on trends and analysis of ICRAs performance and ratings of African economies suggests that the lack of a regional regulatory framework for the work of ICRAs may be a gap. The European Union has the European Association of Credit Rating Agencies (EACRA) which assumes the role of a quasi-regulator