Debt markets open again for sub-Saharan Africa – Fitch

INTERNATIONAL – Ivory Coast, Ghana and Kenya may all tap international debt markets in 2021, Fitch Ratings said, as investor sentiment towards the region improves after the former’s recent $1.2 billion (R18.34 billion) issue.

But weaker-rated nations in sub-Saharan Africa may still face higher funding costs than before the coronavirus pandemic, which could discourage their return to markets, Fitch said in a report released on Monday.

Ivory Coast’s Eurobond, which was five times oversubscribed last week, was sub-Saharan Africa’s first of the pandemic era and underlined a recovery in investor confidence in a region that has lagged others in returning to the markets after the shock.

Ghana and Gabon both sold debt before the pandemic, but investor aversion heightened as the virus spread around the globe and concerns mounted about a deterioration in growth and public finances.

“We expect other sovereigns to follow Cote d’Ivoire in issuing Eurobonds in 2021, as market conditions have eased sharply,” Fitch said.