The persistently low value of bonds issued by this WAEMU country, which faces no risk of currency volatility due to the fixed parity of its currency with the euro, has rekindled the debate on the surcharge imposed on African states for borrowing on the world market.

Market data analyzed by the Ecofin Agency reveals investor reluctance towards long-term Côte d'Ivoire Eurobonds. This skepticism is reflected in a fall in the value of these debt securities on the secondary market compared with when they were first issued.

As of May 21, 2024, Côte d'Ivoire's Eurobond issued on March 22, 2018, maturing in March 2048 (29 years), and currently valued at €1.1 billion, was trading at 79.5% of its issuance value, according to the Frankfurt Stock Exchange. This bond offers the highest positive yield gap for investors between issuance and current yield among all Côte d'Ivoire Eurobonds.

Another significant bond is the €850 million Eurobond issued in October 2019, due in October 2040 (just over 16 years). Its current value stands at 89% of its issuance value, making it the second-highest positive yield gap among Ivorian international bonds. Consequently, the Ivorian government will face higher costs if it seeks to refinance these bonds, which require €116.4 million in interest payments this year.

In contrast, the €625 million Eurobond is trading at 101% of its issuance value, with a current yield of 3.26% compared to 5.125% at issuance. However, this bond will be fully repaid by June 15, 2025, and its remaining balance is relatively low (€27.6 million), reducing economic and liquidity risks.

Despite this, long-term investor skepticism persists, amid ongoing debates about the risk premium applied to African Eurobonds. The International Monetary Fund (IMF) has confirmed this reality, highlighting that investors apply more pressure on African countries with similar ratings.

The IMF's analysis also indicates that investors, both in primary and secondary markets, consider other factors not covered by rating agencies, such as the liquidity of African eurobonds, which are less traded on international secondary markets. To compensate for this liquidity risk, investors demand higher yields. Additional factors include the often inadequate economic statistics published by African governments, increasing information access costs, and direct or nearby political risks (such as those in the Sahel).

Like many sub-Saharan African countries, Côte d'Ivoire needs significant funding to achieve its development and sustainability goals. Despite the challenges, the country has shown notable performance, with a BB- rating (positive outlook) from S&P, and a successful sovereign bond issuance in early 2024.

However, many analysts point out that individual successes cannot aid a continent seeking a unified market, improved governance, and faster per capita wealth growth than Europe. Finally, the debt sustainability of major economic powers is not solely due to better macroeconomic clarity or debt repayment. It also stems from central bank interventions, which have shown in recent years that they can eliminate sovereign risk, a concern for sub-Saharan African countries. It should be noted that while the long-term repayable value of Côte d'Ivoire's sovereign bonds remains low, it has significantly improved compared to a few months ago.