The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

Africa: Sovereigns weigh the price of diversification

African countries’ ability to access diversified funding is becoming more important. Deepening the local-currency bond markets is essential, but is the price worth paying? And are development organizations doing enough?

Over the past 18 months, African sovereigns have come on to the international community’s radar – for all the right reasons. Successful Eurobond issues have brought previously unknown – often obscure – African credits to the forefront of emerging markets investments.

There are now an impressive 11 sub-Saharan African countries in JPMorgan’s Emerging Market Bond Index: Angola, Côte d’Ivoire, Gabon, Ghana, Mozambique, Namibia, Nigeria, Senegal, South Africa, Tanzania and Zambia. All of them have raised at least $500 million on the bond market.

"This is an exciting period," says Jan Dehn, head of research at Ashmore Group, an emerging markets investment manager. "We are seeing a whole new generation of countries embarking on capital market development."

Sub-Saharan African credits have become a permanent fixture for large institutional funds.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to and analysis and receive expertly-curated updates direct to your inbox.


Already a user?

Login now


We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree