Ghana has become the biggest loser on the African continent as a result of the country's inability to issue Eurobonds.

The lack of access to the international capital market is due to the global economic challenges and internal issues.

According to the September 2022 Africa Markets Revealed Report by Standard Bank, the country’s Year-To-Date Index (listed bonds) is down by 34.6%. It is followed by Morocco (-20.8%) and Rwanda (-20.2 %), while the biggest gainer is the Republic of Congo, whose Year-To-Date index is up 9%.

The report also said while oil and gas prices are starting to fall, countries such as Nigeria and Angola have performed better than counterparts in Africa. Angola now is the largest producer of oil in Africa, with average daily output in August of 1.17million per barrel, exceeding Nigeria with an average daily output of 1.13 million per barrel.

Most African countries cannot issue new Eurobonds

“Most African countries can no longer issue new Eurobonds because of elevated yields due to global risk-off sentiment. Indeed, yields rose significantly in quarter 2, 2022 and quarter 3, 2022. In the last month, even though yields have decreased, they remain elevated”, the report stated.

Earlier in the year, Angola, Nigeria and South Africa issued new Eurobonds.  

Kenya and Nigeria were set to issue again but then shelfed issuance due to global conditions. Kenya had previously issued bonds around a yield of 6%-8%; now, Kenya Eurobond yields are trading around 11.7%.

“We don’t foresee yields returning to previous levels by December [2022]. Hence, new Eurobond issuance seems likely only by mid-2023”, it added.