Africa’s Eurobonds
Welcome to our comprehensive database exploring Africa’s engagement with Eurobonds. Since South Africa’s pioneering issuance three decades ago, and as of August 2023, 19 African countries had 91 active Eurobonds, amounting to a face value of US$111 billion. While these instruments have provided essential capital for development, they also present challenges, including high coupon rates—some exceeding 9%—and significant debt servicing obligations.
Our platform offers in-depth analyses of these dynamics, aiming to foster informed discussions on sustainable financing strategies that align with Africa’s development aspirations.
EXPLORE OUR DATA
Analysis of Africa’s outstanding Eurobonds relative to GDP
DR’s Key Takeaways:
- For countries like Gabon, Ghana, and Angola, Eurobond debt represents a sizeable portion of GDP. Additionally, high reliance on (expensive) private sector credit indicates the state of sovereign debt market challenges these borrowers face.
- With about 35% of Africa active in the Eurobond market, interest and appetite for credit is clear, but could expand under more affordable borrowing terms.
Scatter graph showing when countries are due to face fiscal challenges (2024 – 2050)
DR’s Key Takeaways:
- By country frequency, 2024, 2025, 2027, and 2028 are projected to be the most fiscally strenuous years for Africa’s Eurobond debt servicing. At least six countries may face debt repayment challenges in each year.
- There is no consistent correlation between number of outstanding Eurobonds a country has, and how frequently a country is expected to experience fiscal strain – this highlights a challenge of unsustainably high bond market pricing that African borrowers face at the expense of national priorities like infrastructure development.
- Without urgent reforms to the global financial architecture, the current tail-end of projected fiscal strains will re-emerge as a new group of African Eurobond issuers borrowing from the private sector to service old bond market debts.
Previous DR Work
- Report: How many Eurobonds does Africa have and how might it impact their budgets in the future? https://developmentreimagined.com/africa-and-eurobonds-how-many-eurobonds-does-africa-have-and-how-might-it-impact-their-budgets-in-the-future/
