Benin, Senegal, and Côte d'Ivoire have to repay $14.5 billion in Eurobonds by 2048, mostly in euros. Refinancing these bonds is difficult, given rising interest rates and the perception of high risk.
Three West African countries, Benin, Senegal, and Côte d'Ivoire, are due to repay a combined $14.5 billion in Eurobonds between October 1, 2023, and March 22, 2048, according to data compiled by Agence Umoa-Titres on the Refinitiv professional platform. The majority of this sum, $9.5 billion, is to be paid in euros.
However, they also have to repay $4.9 billion in US dollar bonds, and unlike their currency's fixed parity with the euro, the value of dollar-denominated bonds can vary if the dollar exchange rate fluctuates. Three of these bonds, for a total of $1.9 billion, must be repaid before the end of July 2024.
Refinancing their debts might pose challenges for these countries. Despite positive economic prospects, investors view them as riskier and less lucrative compared to regions like the USA, Europe, or Asia, where interest rates are on the rise. Consequently, the gap between their borrowing rates and current bond yields is widening, reaching up to 5% for some.
Collectively, these nations had borrowed $18.5 billion internationally, aiming for lower interest rates than their local markets. However, the landscape shifted due to the Covid-19 crisis and global uncertainties. The US increased interest rates, prompting investors to exit riskier markets, including those considering debt cancellation.
A significant hurdle for these countries is that borrowed funds were often allocated to development projects or managing external debt. Now, they must undertake economic reforms to generate enough foreign exchange earnings for debt repayment.
Ethio Telecom has signed a new agreement with Ericsson to expand and modernize its telecom netwo...
EIB commits over €1 billion for renewable energy in sub-Saharan Africa Funding supports Miss...
MTN Zambia tests Starlink satellite service connecting phones directly from space Direct-to...
Since its 2019 IPO, Airtel Africa paid Deloitte over $37 million in audit and non-audit fees,...
Nigeria introduced a 1% flat tax on the turnover of informal-sector businesses under a new presump...
Zambia aims to strengthen its digital policies by studying Kenya’s regulatory and technological frameworks. Officials discussed cybersecurity...
Burkina Faso appoints Wendkuni Zombré as Air Burkina director general Airline resumed operations in 2024 after years of inactivity New leadership...
Niger is validating a national digital development strategy covering 2026–2035. The plan focuses on expanding fiber infrastructure, digital governance,...
Gabon seeks to attract U.S. investment into energy and water sectors Delegation presents $540 million development plan in Washington Government...
With much of Africa’s cultural heritage still held outside the continent and restitutions in Europe moving slowly, a South African video game imagines...
Paris exhibition showcases Brazilian painter Gonçalo Ivo’s Africa-inspired works Show runs March 20-July 9 at La Maison Gacha Exhibition...