The future of Africa’s development financing: why Eurobond issuance is declining

Misheck Mutize ()
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Misheck Mutize: Graduate School of Business, University of Cape Town

Development Finance Agenda, 2022, vol. 7, issue 2, 8-9

Abstract: Africa was introduced to Eurobond issuance for financing fiscal budgets in 1995, when South Africa became the first country to issue Eurobonds, followed by Seychelles in 2006. In the late 2000s, Eurobonds rose to prominence in Africa as they opened a window for governments to diversify their funding sources from the rapidly declining traditional funding sources and foreign aid. Multilateral loans were becoming unpopular because of their strict conditionalities centred around implementing structural economic programme that are austerity in nature. To date, 21 African countries have issued Eurobonds worth a combined total of an estimated US$155 billion on international bond markets. The appetite for Eurobonds has declined from US$10 in 2020 and US$17 billion in 2021, issued by a total of nine countries to only US$6 billion issued by 3 countries by the third quarter of 2022.

Date: 2022
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