The Ivorian government has decided not to rely on the international debt market this year to finance its economy. Rather, the country plans to acquire the $2.1 billion it needs from WAEMU’s (West African Economic and Monetary Union) capital market, Reuters reported citing Abdourahmane Cisse, Ivorian Deputy Minister in charge of budget.

Cote d’Ivoire’s decision was driven by the high rates currently characterizing African bond issuances. WAEMU’s economic driver has issued two Eurobonds, one in 2014 amounting to $750 million, and another of $1 billion in 2015. The latter had a maturity period of 12 years at a rate of 6.625%, which soared to 8%.

Abdourhamane Cisse said Cote d’Ivoire will not issue a bond with a rate of more or equal to 7%. Rates provided to African nations on the bond market are not encouraging. Angola, for example, was imposed a rate of 9.25% while Cameroon, despite having a partial guarantee from AfDB, got a record rate of 10.75%.

Idriss Linge