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High US Interest Rates and Risk Aversion Make Refinancing Costly for African Nations

  • African nations face high borrowing costs due to attractive US rates and risk aversion. Accessing funds through Eurobonds is challenging.

  • Sovereigns are seeking to diversify funding sources to mitigate high financing costs.

  • Favorable US rates will keep African borrowing costs high in the short term, making it hard to refinance maturing Eurobonds.

  • Kenya has relied on bilateral agreements and multilateral loans rather than issuing sovereign bonds due to high rate demands.

  • African issuers like Kenya, Zambia and Angola have billions in Eurobonds maturing soon that need refinancing.

businessinsider.com
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