African Sovereigns Reassess Eurobond Strategy Amid Rising Borrowing Costs

Sustainable finance in Africa sits at the center of an evolving global policy dialogue. As multilateral institutions recalibrate their development mandates and the energy transition redirects capital flows, the question of how African nations borrow—rather than simply how much—has emerged as a strategic priority.

Since the early 2000s, African countries have accessed international capital markets as part of broader financial reforms. Structural weaknesses in this lending framework, however, have precipitated severe debt crises in Zambia, Ghana, and Ethiopia, among others.

The return to markets in 2024 has exacted a steep premium: nations including Côte d’Ivoire, Benin, and Kenya re-entered at an average coupon of approximately 8.5%, implying an estimated $4 billion in interest obligations over the life of those bonds. For many governments, this reality raises fundamental questions about the role Eurobonds should play in Africa’s development financing portfolio moving forward, and where alternative financing mechanisms fit within the same strategy.

Moderator

Dr Joseph Upile Matola: Acting Head of the Economic Resilience and Inclusion Programme, SAIIA

Speakers

• Dr Misheck Mutize: Lead Expert on Country Support on Rating Agencies, African Peer Review Mechanism
• Mr Trevor Lwere: Research and Coordination Analyst, Development Reimagined
• Mr Jules Devie: Senior Research Analyst, Finance for Development Lab
• Ms Mma Amara Ekeruche: Senior Research Fellow, Centre for the Study of the Economies of Africa

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