Africa economies grapple with funding hiccups as bond issuance drops 70pc
A busy street in Kinshasa, DRC on August 11, 2021. Most African countries have been shut out of capital markets and for those that defended their currency, have been drained of their hard-earned foreign exchange reserves. PHOTO | ARSENE MPIANA | AFP
African countries are struggling to raise funding after attempts to borrow from international capital markets were scuttled by rising interest rates and depreciating currencies, which have pushed debt repayments through the roof.
A new report by the African Export-Import Bank (Afreximbank) shows that bond issuance by African countries declined by 70 percent in 2022, with some countries such as Kenya compelled to cancel planned Eurobond issues.
