Audio By Carbonatix
African governments need to be tougher when negotiating the terms of Eurobonds and commercial loans, the African Development Bank said.
Some external debts mature before the infrastructure projects they fund start generating returns, which raises refinancing risks, the president of the development-finance lender warned. Neither should African borrowers be “price takers,” he said.
“The short-term maturity of some of these debts do not match the long-term revenue streams,” Akinwumi Adesina said in an interview in Johannesburg. “You are going to have to pay back when you are not earning the money. These bonds are oversubscribed because people see opportunities to make a killing.”
Governments have increased their issuance of dollar and euro bonds in recent years as loose monetary conditions in developed nations push global investors to buy higher-yielding assets, not least those in emerging markets.

Africa’s sovereign issuance in the two currencies totalled $53 billion in 2018 and 2019, according to data compiled by Bloomberg. Egypt, Angola, South Africa and Nigeria were the most prolific borrowers in that period.
This year, Angola, Gabon and Ghana have tapped the Eurobond market. Ghana got around $15 billion of orders for a $3 billion deal last month.
Investors have been richly rewarded for buying African sovereign dollar debt. It generated a total return of 21% in 2019, more than any other region in emerging markets.
Public debt in sub-Saharan Africa has doubled to 50% of Gross Domestic Product since 2008, the International Monetary Fund estimates.
Kenya raised its debt ceiling last year and the IMF said the government should be more cautious in building credit. In South Africa, authorities see debt spiking to 78% of GDP by 2028, from just above 60%.
And while Nigeria’s debt is low as a proportion of GDP, the government spends more than half its revenue servicing it, according to the IMF.
Rising debt-service ratios are “increasingly problematic,” Razia Khan, Standard Chartered Plc’s chief economist for the Middle East and Africa, said in a tweet Sunday.
Still, Adesina said Africa isn’t facing a debt crisis.
“Debt is not a problem, it’s very bad debt that’s a problem,” the AfDB president said.
“You have got to worry about the terms of those Eurobonds, the short term nature and the repayment risk when they are due.”
Some African borrowers have lengthened the maturity of their bonds. Ghana’s deal included a 40-year tranche, the longest yet from sub-Saharan Africa.
Latest Stories
-
Star Oil launches fuel now, pay later scheme using Ghanacard and credit scoring system
20 minutes -
I mostly listen to Muslim or Indian songs – Lasmid
22 minutes -
Paramount makes $108.4bn hostile bid for Warner Bros Discovery
41 minutes -
Dr Kpikpi links galamsey crisis to poor resource stewardship, praises Goldbod initiative
47 minutes -
Selassie Ibrahim calls for fair management of Film Development Fund
48 minutes -
‘This is the real picture’ – Dr Kpikpi says WASSCE results exposes long-standing decline
53 minutes -
BoG signals plan to scale back liquidity mop-up in 2026
1 hour -
Northern College of Science and Technology wins National Best JHS in practical agriculture
1 hour -
Vice President reviews 46th Change of Guards at the presidency
1 hour -
The Apostolic Church Ghana dedicates new TAC Tower headquarters in Madina
1 hour -
Galamsey Fight: Court adjourns case of alleged assault on JoyNews crew to April 15, 2026
1 hour -
Tariff hikes are not reforms but punishment – Minority slams gov’t
2 hours -
Christian Council of Ghana appeals to plaintiff in Wesley Girls’ case to seek amicable, out-of-court settlement
2 hours -
Woman who blackmailed Son Heung-min gets four years in jail
2 hours -
Kufuor’s non-consultation claim valid, but not constitutional duty – Haruna Mohammed
2 hours
