Warning Lights Flash for Africa Borrowers After Zambia Debt Sale

If Zambia’s latest Eurobond is any guide, other African borrowers lining up to tap capital markets should expect a jump in borrowing costs.

Demand tumbled as costs rose when President Edgar Lungu’s government sold its third dollar bond in as many years on July 23, suggesting the era of low-cost borrowing for sub-Saharan nations is drawing to a close. Ghana, Angola, Tanzania and Nigeria have signaled plans to sell debt in coming months.