Côte d'Ivoire Reopens SSA Eurobond Market
- How has Côte d'Ivoire’s economy performed since 2022?
- Is Côte d'Ivoire’s economy conducive to eurobond issuances?
Between 2006 and 2021, 21 Sub-Saharan African (SSA) countries tapped into international markets via eurobond issuances worth $140 billion, compared to only one issuance before 2000. We can explain the surge in issuances during this period from two perspectives. For SSA countries, eurobonds provided an additional source for development financing without the attached conditions of concessional loans. From the global investors' perspective, SSA countries offered higher interest rates than the United States (US) and other advanced economies, with promising regional economic growth averaging 4.1%.
However, the landscape changed when the US Federal Reserve and European Central Bank started to raise interest rates to counter rising inflation in 2022. Investors began to move their investments to safe havens like the US due to the riskiness associated with emerging markets, leading to high-interest rates and currency deprecations in the SSA region.
Consequently, access to the international debt market for SSA countries was
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