Africa requires around $170 billion each year for infrastructure development, yet traditional financing sources continue to fall short.
In an interview with CNBC Africa, Development Reimagined’s Development Finance Advisor Etse Kebret explains why expanding the range of financing instruments available to African governments is critical.
Many African countries have relied heavily on Eurobonds issued in foreign currencies. While these have provided access to capital, they also expose governments to significant exchange rate risks and higher repayment costs.
Our latest policy brief highlights alternative options including panda bonds issued in China’s onshore market, samurai bonds in Japan, masala bonds in India, sukuk financing structures and diaspora bonds that mobilise capital from African communities abroad.
Diversifying financing strategies will be key to strengthening Africa’s funding base and supporting long term development priorities.
