Debt issuance in Sub-Saharan Africa down 10%
The region raised a total of $6.9 billion in the first six months of the year.Debt issuance in sub-Saharan Africa fell significantly in the first half of 2016, a new report from Thomson Reuters shows.
It said that the prospect of hikes in U.S. interest rates, slowing economies at home, a gloomy outlook for commodity prices and rising borrowing costs caused African states and companies to become more reluctant to tap capital markets this year.
The region raised a total of $6.9 billion (€6.2 billion) in the first six months of the year, down 10 per cent compared with the same time last year.
Ivory Coast was the most active issuer nation with $4.1 billion in bond proceeds which accounted for 59 per cent of market activity, followed by South Africa with 31 percent market share worth US$2.1 billion in proceeds.
Governments in sub-Saharan Africa had issued $15.5 billion in debt on national, regional and international markets in 2015, down 22 per cent on 2014 and the lowest level since 2012.
Yet in 2014, bonds were at record levels, driven by historically low interest rates and the US Federal Reserve's very accommodative policy, designed to boost infrastructure projects.