Document Type
Original Article
Subject Areas
African Trade
Keywords
Sub-Saharan Africa; Sovereign debt markets; Development finance
Abstract
We examine the borrowings of Sub-Saharan African (SSA) economies on the international sovereign bond markets between 2006 and 2022 and found that African economies continue to pay a coupon rate about 1% higher than other economies with similar credit ratings, on average. Therefore, African countries will have paid at least $5 billion in additional interest that cannot be justified by their ratings when all current bond issues mature. We find that the premium did not disappear with the experience of African countries returning to the private bond markets, nor did it fall dramatically from the 2005-2014 period.
How to Cite This Article
Olabisi, Michael and Stein, Howard
(2024)
"Do African Countries Still Pay More to Borrow? Evidence for 2006-22,"
Journal of African Trade: Vol. 11:
Iss.
1, Article 3.
Receive Date
06/10/2023
Accept Date
23/05/2024
Publication Date
2024
