Africa Turns to Local Borrowing With Foreign Markets Too Pricey
- Sovereign debt spreads over Treasuries more than double
- Egypt, Zambia, Mozambique and Ghana face most debt challenges
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There is no place like home for African governments shut out of global debt markets by crises that have made foreign borrowing too expensive.
According to the S&P Global Ratings’ annual African Debt report published Wednesday, Eurobond markets have become tighter as investors grappled with shocks caused by the Covid-19 pandemic, Russia’s invasion of Ukraine, high global inflation and aggressive interest-rate increases led by the US Federal Reserve.