Debt Management Considerations for Sub-Saharan Africa’s Eurobond Issuers A combination of factors has led to increased participation in international capital markets by frontier economies in Africa. Not least of these has been the post-crisis global liquidity environment, characterized by low interest rates in the United States. As a result, many investors– in search for yield– have been experimenting with sovereigns beyond the traditional emerging markets. For developed regions with budget problems, austerity measures may also have slowed the flow of bilateral and multilateral financing that has traditionally been a key funding source for many African sovereigns [1]. Several economies in Africa including Kenya, Tanzania, Zambia, Rwanda, and Ghana among others have taken advantage of the low global interest rates to issue sovereign bonds to finance infrastructure and other spending [2] [3] [4] . In this policy paper I look at the potential fallout with re...
Economics, Data Science, Consulting