Several African nations are taking advantage of their improved credit ratings and a fall in borrowing costs to refinance their debt.
Kenya will buy back outstanding bonds and issue new dollar debt after its credit rating was raised last month, while Côte d’Ivoire is readying a similar strategy, Bloomberg reported. Benin and Cameroon have already tapped debt markets this year, while Angola, the Democratic Republic of Congo, and the Republic of Congo are planning debt sales, too.
The moves showcase how African finance ministries are proactively managing their borrowing loads rather than simply warding off debt distress. Yet challenges persist: Several nations still have high debt-servicing costs, while others struggle to generate fiscal revenues, McKinsey noted recently.
