Nigeria Match With S. Africa Is No Contest in the Bond Market
- Nigeria’s dollar debt returns 25% amid sweeping Tinubu reform
- South Africa political, fiscal risks see bonds trade sideways
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As continental rivals Nigeria and South Africa compete in Africa’s most important football tournament on Wednesday, their fortunes are diverging in markets.
Nigeria’s dollar bonds have been among the world’s top performers in the past year, with a 25% return, as investors buy into major reforms in Africa’s biggest economy. By contrast, bonds from South Africa — the second-largest economy — have returned 4.4%, and foreign investor holdings have slumped to a record low in the face of its political and fiscal challenges.